Enersense: Reported EBITDA will include EUR 6m writedown in Q2 - Nordea

The company writes down EUR 6m receivable which will have a corresponding negative impact on the EBITDA in Q2 2024. Enersense also withdraws its full year 2024 EBITDA guidance of EUR 15-20m for the time being. The company’s net sales guidance 2024 will remain unchanged. The reason for the write down is related to two projects with Lithuanian electricity transmission system operator Litgrid during 2021-2023. By excluding write-down, relative profitability still needs to improve to reach the old EBITDA guidance midpoint of EUR 20m in 2024 we note. Our EBITDA forecast has been EUR 18.7m in 2024. Risks related to profitability and the balance sheet are also visible in the share price which has declined by ~25% year to date. Weak net results have led to a relatively low equity ratio. We note that Enersense received a waiver from financiers because the adjusted equity ratio was under the covenant level as of the end of March 2024. Enersense is negotiating to further specify the covenant level for the full-year 2024.