We raise our fair value range to SEK 115-155 (95-135)
Q2’22 better than we expected
Eolus’ strong Q2 report was mainly driven by the sale of Stor-Skälsjön, which contributed SEK 900m to a total net sales result of SEK 1,448m, with the remainder mainly coming from Öyfjellet. EBIT of SEK 220m was clearly above our expectation of SEK 45m – again, the main driver was Stor-Skälsjön, with Öyfjellet not contributing much to EBIT. Net profit ex-minority interests was SEK 103m. Cash flow from operating activities was strong at SEK 315m, helped by a SEK 220m support from working capital for an overall net cash position of SEK 598m. The strong balance sheet puts Eolus Vind in a good position to invest in growth over the coming years.
Busy quarters ahead
Eolus Vind now has 12 projects in late-stage development. We hope that the long-awaited completion of Öyfjellet will come through in Q3. Two projects, Fågelås (43 MW) and Ölme (88 MW), have received permits in Q2 and are proceeding to the procurement phase. We expect that Rosenskog, Tjärnäs, Skallberget/Utterberget (117 MW capacity) and Centennial Flats (750 MW capacity) will be sold in Q3 and Q4. Lastly, the company has added a Swedish offshore wind project of 1.5 GW to the portfolio during Q2, taking it to 17.4 GW. Due to the strong Q2, we have raised our ‘22e EBIT significantly to SEK 242m vs. our previous estimate of SEK 54m. We lower ‘23e EBIT by 15%, as the company was able to recognise more revenue for Stor-Skälsjön already in ‘22e (and therefore slightly less in ‘23e) compared to our expectations.
Underlying demand for green energy
We believe Eolus Vind has interesting projects coming up that should support sentiment in the near-term. The long-term outlook remains positive, mainly driven by a strong pipeline of projects and an underlying need ...
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