European Energy has reported a significant 61% decline in revenue, totaling €111.9 million during the reporting period. This decrease is primarily attributed to lower sales from energy parks and energy sales.
Key Developments
Despite the revenue decline, European Energy secured its first offshore establishment permit for the Lillebaelt Syd offshore wind project in Denmark, a 165 MW initiative co-developed with SONFOR. Expected to become operational in 2029, this project will supply electricity to approximately 148,000 households.
In addition to the offshore wind project, European Energy is advancing its portfolio with the construction of a 148 MW solar park in Latvia and a 26 MW wind park in Greece. These developments contribute to the company’s total capacity of 1.1 GW under construction by the end of the third quarter of 2024.
Record Achievements in Power Purchase Agreements
European Energy has achieved record results in Power Purchase Agreements (PPAs), signing agreements totaling over 1.7 GW year-to-date, marking the highest contracted capacity in the company’s history. Furthermore, the company secured Contracts for Difference (CFD) auction wins representing an additional 200 MW. These agreements lay a strong foundation for the company’s 2025 construction pipeline.
Management Insights
Jens-Peter Zink, deputy chief executive of European Energy, stated, “We have had a dynamic and highly productive 2024 at European Energy.” However, he noted that some planned divestments have experienced timing shifts, which are unrelated to the company’s strategic direction. As a result, full-year EBITDA is now expected to align with the lower end of the previous guidance range of €184 million, with a risk margin of ±10%. Profit-before-tax guidance has also been revised to reflect a decline compared to 2023.
Jens Due Olsen, Chair of the Board of Directors, added, “Despite challenges on the divestment side, we are seeing excellent traction in other areas of European Energy. Notably, there are major positive developments in our Power-to-X initiatives, setting the stage for an exciting close to the year.”
Future Growth Initiatives
To support future growth, European Energy issued a €375 million bond in November. This financial move is expected to bolster the company’s capabilities in pursuing its ambitious renewable energy projects.
Conclusion
While European Energy faces challenges with revenue and divestments, its strong project pipeline and record achievements in PPAs suggest a resilient strategic direction. The company’s commitment to expanding its renewable energy capacity positions it well for future growth in the evolving energy landscape.
