Q2 2024 OX2 AB (publ) Earnings Call Transcript
Key Points
- OX2 AB (FRA:4DA) has a strong portfolio with over 2 gigawatts of projects ready to build and in the sales process.
- The company completed a 42.5 megawatt-hour battery storage project during the quarter.
- OX2 AB (FRA:4DA) has exceeded 5 gigawatts in asset management, including more than 1,000 wind turbines.
- The company has a solid project in Poland with limited financial risk due to a contract for difference with the Polish state.
- OX2 AB (FRA:4DA) is making significant progress in the construction portfolio, with three projects set to complete in 2024.
- The operating margin has dropped to 5.5% LTM, and return on capital employed is down to 9%.
- The company experienced a slow quarter in terms of new project sales, impacting gross profit and operating income.
- There is an elevated risk on timing for project sales due to the need for comprehensive offtake agreements and debt financing packages.
- The acquisition pace has been quite low, which is slower than expected.
- OX2 AB (FRA:4DA) is currently below its targets for new sales, profitability, and returns.
Good morning, everyone, and welcome to the earnings call for the second-quarter 2024 of OX2. Today, as usual, it will be myself, Paul, and CFO, Johan, presenting. And on the agenda, page 4, we'll give you, as usual, highlights of the portfolio, financial review, market outlook. And there's time for a Q&A in the end.
Starting at page 5, OX2 is, as we are aware, in the middle of the transition. We call it powering the great shift long term. We see good movements towards an electrified energy space. But there is volatility near term, as we are also aware of.
Despite that, we look back at more than 20 years now of track record, being a leading pure-play developer in Europe and having more than 4 gigawatts constructed and/or in construction. So we have a long and proud history and also looking forward to participating in the next phase of this transition phase in the energy space.
Looking LTM, Johan will go more into the details. But you can note that we now have fallen slightly below the communicated thresholds and
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