Eolus Vind AB (FRA:7EVB) Q4 2024 Earnings Call Highlights: Record-Breaking Quarter with ...

In This Article:

  • Net Sales: SEK 851 million for the full fiscal year 2024.

  • Net Profit: SEK 155 million for the full fiscal year 2024.

  • Q4 Net Sales: SEK 729 million, up from SEK 155 million in Q4 2023.

  • Q4 Operating Profit: SEK 437 million, compared to SEK 99 million in Q4 2023.

  • Q4 Net Profit: SEK 315 million, compared to SEK 71 million in Q4 2023.

  • Equity to Asset Ratio: 38% at the end of 2024.

  • Dividend Proposal: SEK 2.25 per share for 2024, unchanged from the previous year.

  • Cash and Cash Equivalents: SEK 356 million at the end of December 2024.

  • Interest Bearing Liabilities: Nearly SEK 2.4 billion, up from SEK 692 million in December 2023.

  • Net Cash Flow from Operations: SEK 422 million, compared to SEK 82 million last year.

  • Projects Under Construction: 456 megawatts with a 94% completion rate.

  • Milestone Payment: $64.7 million for the Centennial Flats project in the US.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Eolus Vind AB (FRA:7EVB) reported its second-best quarter in company history, with significant net sales and profits.

  • The company received a substantial milestone payment for the Centennial Flats project, contributing significantly to operating profit.

  • Eolus Vind AB (FRA:7EVB) has a diversified portfolio across wind, solar, and battery storage projects, which provides stability even when certain markets slow down.

  • The company has a strong pipeline of projects expected to reach construction in the near term, indicating continued growth potential.

  • Eolus Vind AB (FRA:7EVB) maintains a solid financial position with a 38% equity to asset ratio, supporting its ability to take calculated risks.

Negative Points

  • The company experienced a decrease in portfolio size by 1%, equaling 371 megawatts, indicating potential challenges in maintaining growth momentum.

  • There is a slower market for onshore wind projects, which may impact the timing of project sales and revenue recognition.

  • Eolus Vind AB (FRA:7EVB) did not meet its sales volume targets in megawatts, leading to a strategic shift from volume to value focus.

  • The geopolitical risk has increased, potentially affecting project timelines and investor interest, particularly in the Baltic states.

  • The company has a high net debt position due to ongoing construction projects, which may limit financial flexibility until transactions are completed.

Q & A Highlights

Q: What is Eolus Vind AB's long-term view on offshore wind projects given recent challenges in the industry? A: Per Witalisson, CEO, stated that offshore wind will be crucial in most markets to meet electrification targets. However, near-term support is needed, both politically and in terms of risk-sharing. Eolus Vind AB is developing its Swedish projects at a slower pace to preserve value and maintain control over timing.