Nordic Solar publishes its financial statements for the first half of 2024

In the second quarter of 2024, the company generated revenue of EUR 17.1 million, EBITDA of EUR 9.8 million and a pre-tax loss of EUR 2.4 million. Production rose by 8% following increased capacity, but results were impacted by continued low electricity prices, grid curtailments and poor weather conditions. During the quarter, the company initiated the first of many prospective battery projects in addition to increased sophistication on PPA and power price hedging as well as additional greenfield capacity to the portfolio in Denmark.

The company's results in outline: Revenue of EUR 17.1 million (Q2 2023: EUR 20.8 million), EBITDA of EUR 9.8 million (Q2 2023: EUR 12.4 million) and a loss for the period of EUR 2.7 million (Q2 2023: a profit of EUR 2.6 million). The share of secured revenue decreased to 73% (Q2 2023: 79%). Cash flow from ordinary operating activities decreased to EUR 13.2 million (Q2 2023: 21.1 million). Electricity production increased by 8% to 185 GWh (Q2 2023: 172 GWh).

Nordic Solar narrows and lowers its financial outlook for 2024, expecting revenue in the range of EUR 50-58 million (previously EUR 57-69 million) and EBITDA, including profit from divestments, in the range of EUR 32-40 million (previously EUR 36-48 million).

First of many battery projects initiated
After two years of preparatory work, the company is starting up its first battery project as an integral component in the company’s strategy of ensuring competitiveness and profitability in its portfolio. With a battery portfolio of 315 MW across 25 projects, Nordic Solar is ready to add a key strategic enabler to both its operational solar parks as well as the projects in development. This addition not only enhances the efficiency of our solar PV projects but also unlocks possible new revenue streams and aims at ensuring more stable and higher capture prices in the future. The first battery project is expected to be in operation before the end of Q1 2025.

Increasing greenfield capacity in the portfolio
With the inclusion of battery projects covering 315 MW, Nordic Solar’s combined portfolio of development projects increased to 2,435 MWp (Q2 2023: 1,652 MWp). The development portfolio is increasingly composed of greenfield projects, with a capacity reaching 514 MWp following the addition of one project in Denmark during Q2. Approx. half of the solar PV projects in development are expected to be, or are already, ready for construction within the next 12 months.

At end of the Q2 2024, Nordic Solar’s projects under construction totalled 247 MWp, covering four projects in Sweden, Lithuania and Spain.

The capacity of the operational portfolio remained unchanged during the quarter, amounting to 469 MWp (Q2 2023: 390 MWp).

Total electricity production increased by 8% to 185 GWh (Q2 2023: 172 GWh). Production for the first six months of 2024 increased by 2% to 247 GWh (H1 2023: 242 GWh).

CEO Nikolaj Holtet Hoff elaborates: “While we increased production by 8% in the second quarter, it was nonetheless impacted by low electricity prices, grid curtailments and poor weather conditions. However, by gradually incorporating battery storage into our portfolio, in addition to our sophistication on PPA and power price hedging, it will become one of several ways we can control our exposure to the electricity spot market while adding additional revenue streams going forward. Furthermore, we are progressing well on our development projects, we now have over 500 MWp of greenfield capacity underway, and we expect to finalise two of our construction projects before the end of 2024”

Webinar this afternoon at 16:00
In connection with the publication of our financial statements for the first half of 2024, Nordic Solar will host an online presentation at 16:00. At the webinar, CEO Nikolaj Holtet Hoff and CFO Jes Vengaard will present the highlights and results for the quarter and subsequently be available for questions from online participants. The presentation will be held in Danish and will subsequently be available on the company's website. Register for the webinar via the following link: https://www.inderes.dk/videos/nordic-solar-praesentation-af-q2-2024

For more information, please contact:
Head of Investor Relations, Thomas Ølholm France, tel.: +45 86 93 99 24, email: [email protected].