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Enersense International: Growing pains taking their toll - SEB

Difficulties with project management and slower-than-expected ramp-up in the offshore business weighed on our EBITDA estimates. At end-Q1 the adj. equity ratio was below the covenant limit. Enersense is negotiating to adjust the level for full-year 2024. The risk of a need for additional equity financing could be imminent if the negotiations are unsuccessful. We cut our SOTP-based fair value target range to EUR 7-9 (8-10).

Difficulties with project management and slower-than-expected ramp-up in the offshore business weighed on our EBITDA estimates. At end-Q1 the adj. equity ratio was below the covenant limit. Enersense is negotiating to adjust the level for full-year 2024. The risk of a need for additional equity financing could be imminent if the negotiations are unsuccessful. We cut our SOTP-based fair value target range to EUR 7-9 (8-10).
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