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Eolus Vind: Less revenue from Öyfjellet holds back Q3 - ABG

Q3’21 EBIT of SEK 0.3m vs. ABGSCe SEK 88m
15% completion of Öyfjellet in Q3 vs. ABGSCe at 28%
Still aims for Q4 completion, ’21 very back-end loaded

Eolus had Q3 sales of SEK 691m, -42% vs. ABGSCe SEK 1,196m. The shortfall was entirely due to less completion than expected in the large Öyfjellet project (400 MW). Only 15% was completed in the quarter, compared to our forecast of 28%. The lower sales meant that EBIT was only SEK 0.3m compared to our forecast of SEK 88m. Net income of SEK 1.5m (-98% vs. ABGSCe SEK 69m). The project portfolio of ~9 GW is in line with expectations. The Öyfjellet project continues to be more back-end loaded with 57% left to complete. The CEO continues to target project completion before year-end but adds that it to some extent depends on weather conditions if this will be achieved, hence highlighting a risk for a small delay.

Although Eolus missed our expectations in Q3, the long-term value should not be significantly affected since Öyfjellet should still be completed either in Q4 (our base case) or early ‘22e.
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