Nordic Solar publishes its financial statements for the third quarter of 2024

The company has signed its first project in Ireland, started construction of its first battery project and has two projects expected to be fully constructed in Q4. After the end of Q3, the company decided to discontinue the process of raising capital through a potential majority investor and now has a revised internal financing plan in place. The financial outlook has been revised, reflecting a narrowed revenue range and lower EBITDA expectations for the year.

The company's financial results in outline: Revenue of EUR 18.6 million (Q3 2023: EUR 21.2 million), EBITDA of EUR 10.6 million (Q3 2023: EUR 16.9 million) and a loss for the period of EUR 2.5 million (Q3 2023: a profit of EUR 5.1 million). The share of secured revenue increased to 72% (Q3 2023: 67%). Cash flow from ordinary operating activities decreased to EUR 7.7 million (Q3 2023: 17.2 million).

Nordic Solar narrows and lowers its financial outlook for 2024, expecting revenue in the range of EUR 50-52 million (previously EUR 50-58 million) and EBITDA, including profit from divestments, in the range of EUR 22-24 million (previously EUR 32-40 million). The lower EBITDA range follows higher expected one-off costs for Q4 and lower expected profits from divestments.

Added development capacity and first project signed in Ireland

At the end of Q3 2024, the development portfolio increased to 2,479 MWp of which 311 MW stems from battery storage projects. 112 MWp of solar PV capacity was added during the quarter.

At the beginning of Q4, we secured the first hybrid project in Ireland. The project consists of a 120-MWp solar PV project combined with up to an additional 80 MW of battery storage capacity.

First battery under construction and two construction projects expected finalised in Q4

At end of the Q3 2024, Nordic Solar’s projects under construction totalled 298 MWp and comprised 6 projects, including our first battery project under construction, located in Borup, Denmark. In September, we started construction of our German project in Tiste of 46 MWp.

Two of our solar PV projects in Spain and Sweden are almost fully constructed and are expected to be finalised in Q4.

Increased production from operational portfolio

The capacity of the operational portfolio remained unchanged during the quarter, amounting to 469 MWp, and increased by 20% year-on-year (Q3 2023: 390 MWp).

Total electricity production increased by 18% to 195 GWh (Q3 2023: 165 GWh). Production for the first nine months of 2024 increased by 8% to 443 GWh (Q1-Q3 2023: 409 GWh).

While production increased, revenue was impacted by lower average electricity prices across Europe, which were down by 24% year-on-year. Production was to a lesser degree than in Q2 impacted by periodic curtailments.

CEO Nikolaj Holtet Hoff elaborates:

“The lower electricity prices year-on-year impacted our financial results in the short term, although we have increased our production levels substantially. To mitigate the volatile electricity prices going forward, we are pleased to now have our first battery project under construction as adding battery storage to our portfolio will support our long-term profitability. We continue to add capacity to our development portfolio in markets, where we see long-term potential for both solar PV and battery storage. At the same time, we are continuously assessing divestment opportunities across our portfolio to realise value in the short term”.

Capital raise process discontinued with revised financing plan in place

After the end of Q3, the company decided to discontinue the process of raising capital by seeking a potential majority investor. With a revised internal plan for executing the strategy, Nordic Solar is able to extend its ability to execute its pipeline without the need for additional external equity investments at this point in time.