Press release
First quarter results: European Energy sets stage for future growth
May 31, 2024
In the first financial quarter of 2024, European Energy set the stage for the future growth of the company with a series of significant deals and agreements and produced more than 51 percent more electricity compared to Q1 2023.
Copenhagen, Denmark, 31 May, 2024 – Several deals and agreements marked the first financial quarter for European Energy. The most important of these deals was the agreement with Mitsubishi HC Capital to acquire 20 percent of the shares in the company. This agreement, signed on January 19 and concluded on April 16, brings an equity injection of EUR 700m to the company. The funding will allow the company to undertake even more capital-intensive projects and continue the growth trajectory experienced in the last years.
With a stronger capital base, European Energy can fully take advantage of the many agreements signed in Q1 2024. European Energy also expects to initiate new construction activities of more than 1 GW during 2024.
Another significant agreement signed in Q1 2024 was the Power Purchase Agreement (PPA) with the mining company Rio Tinto. This agreement stipulates that Rio Tinto will buy all electricity from the 1.1 GW Upper Calliope Solar Farm in Australia to provide renewable power to Rio Tinto’s Gladstone operations.
During the quarter, European Energy also signed an agreement with TotalEnergies to develop offshore wind projects in three Nordic countries: Denmark, Finland, and Sweden.
“We have paved the way for the future growth of the company during the first quarter of 2024 with the many important and strategic deals and agreements that we have signed. At the same time, we expect to initiate more than 1 GW of new construction activities during 2024,” said Knud Erik Andersen, CEO of European Energy.
555 GWh of renewable energy was produced during the first three months of 2024, a 51% increase compared to the same period last year. This translates into avoiding 129,093 tonnes of CO2 emissions during the quarter. The significant increase in energy production, however, did not hinder slightly lower revenue from power sales due to falling electricity prices.
Project divestments are not realized evenly across the year and in Q1 24, European Energy did not realize any sales. A large portfolio of projects is currently in the process of being divested, with completion primarily in the second half of 2024.
Consequently, revenue in Q1 2024 was slightly lower at EUR 34m compared to EUR 43m in the same quarter last year. EBITDA decreased from EUR 16.3m in Q1 2023 to EUR -3.7m in Q1 2024. Similarly, profits before tax in the first quarter of the year declined from EUR 3.5m in the same period last year to EUR -24.8m.
European Energy is confident about the project sales outlook for the remainder of the year and therefore, we maintain our financial outlook for 2024 of an EBITDA of EUR 230m or a growth of approximately 30%, with a risk margin of +/- 10%. Profits before tax will also grow, but at a lower rate than EBITDA.
Contact
Ming Ou Lü
PR Manager
+45 3126 9376
miol@europeanenergy.com