Q2 2024 Orron Energy AB Earnings Call Transcript
Key Points
- Orron Energy AB (STU:LYV) reported a 20% increase in power generation for the first half of the year compared to the same period last year.
- The company successfully reduced its net debt from EUR 91 million to EUR 46 million by selling a non-core asset, enhancing its financial flexibility.
- Orron Energy AB has a strong balance sheet with more than EUR 120 million in available liquidity, providing significant financial firepower for growth.
- The company has a 40-gigawatt greenfield project portfolio across five countries, indicating strong potential for future growth.
- Orron Energy AB is part of the entrepreneurial Linden group, which has a history of delivering value for shareholders, providing a solid backing for the company's growth ambitions.
- The company experienced weaker-than-expected wind conditions in the first half of the year, resulting in power generation being 10% lower than anticipated.
- Electricity prices in the second quarter were significantly lower than the breakeven cost for new power generation technologies, impacting revenue.
- Orron Energy AB reported a negative EBITDA of EUR 3.4 million for the quarter, excluding non-cash items, due to lower revenues and increased costs.
- The company is trading at a 50% discount to its net asset value, indicating potential undervaluation in the public market.
- Despite having the mandate for share buybacks, the company has not yet proceeded with buybacks, which could be a missed opportunity given the current discount to asset values.
Good afternoon, and welcome to Orrön Energy's second-quarter financial results webcast presentation. Thank you for joining us today.
We will follow the usual format and have a presentation by CEO, Daniel Fitzgerald; and the CFO, Espen Hennie. And then there will be plenty of time to ask any questions you want, and we will try to answer all of them. (Event Instructions)
So with that, again, welcome, everyone, and I would like to hand over to Daniel Fitzgerald.
Thank you, Robert. And it's a pleasure to be here today to share the results of the second quarter and also to give an outlook of the performance of the company and what we expect to do in the second half of this year.
If we take a minute to have a look at an Orrön Energy for those who aren't as familiar with the company, we are a pure-play renewable energy company. We're diversified across a range of renewable technologies,
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
