Stable positive earnings and Arise makes its first sale in energy storage
CEO Comment:
In September, Arise made its first transaction in energy storage (BESS) with the sale of the 40 MW Pajkölen project. The transaction means that we are now delivering on our diversification strategy with new technologies and demonstrating our ability to create value by taking advantage of the company’s platform, the synergies between different projects and market knowledge. The project quickly reached the ready-to-build phase and, in addition to the direct sales proceeds, the transaction entails a material, positive contribution for the Kölvallen project, with lower capex as a result of Pajkölen’s investment contribution to the grid connection. All other things being equal, this entails a higher earnout for the Kölvallen project. The Pajkölen transaction clearly demonstrates the realisable value of our project portfolio in which we now have about 650 MW of battery energy storage system (BESS) in various geographies.
Third quarter (1 July–30 September 2024)
- Net sales for the quarter amounted to MSEK 105 (96).
- Operating profit before depreciation and amortisation (EBITDA) was MSEK 55 (59).
- Operating profit (EBIT) was MSEK 33 (43).
- Profit after tax totalled MSEK 63 (35) and earnings per share amounted to SEK 1.55 (0.84).
- Operating cash flow was MSEK 43 (-47) and cash flow after investments amounted to MSEK -8 (-231).
- Production generated 66 GWh (60) with an average income of SEK 469 per MWh (718).
- The project portfolio increased by more than 200 MW during the quarter.
| Selected key figures | Q3 2024 | Q3 2023 | Q3 2022 | Q3 2021 | Q3 2020 |
| Net sales, MSEK | 105 | 96 | 917 | 180 | 24 |
| EBITDA, MSEK | 55 | 59 | 713 | 76 | 0 |
| Earnings per share, SEK | 1.55 | 0.84 | 15.86 | 1.41 | -0.92 |
| Adjusted equity per share, SEK | 64 | 58 | 50 | 33 | 25 |
| Equity/assets ratio, % | 56 | 58 | 45 | 51 | 43 |
| Project portfolio, MW | ~8,100 | ~6,800 | ~2,650 | ~2,650 | ~1,300 |
First nine months (1 January–30 September 2024)
- Net sales for the period amounted to MSEK 317 (313).
- Operating profit before depreciation and amortisation (EBITDA) totalled MSEK 178 (204).
- Operating profit (EBIT) totalled MSEK 120 (157).
- Profit after tax totalled MSEK 139 (123) and earnings per share was SEK 3.42 (2.86).
- Operating cash flow was MSEK 185 (43) and cash flow after investments amounted to MSEK 11 (-439).
- Production generated 225 GWh (201) with an average income of SEK 605 per MWh (874).
- The project portfolio increased by over 1,200 MW during the period.
Significant events during the first nine months
- In May, Arise announced that the Board had resolved to utilise the authorisation granted by the 2024 Annual General Meeting to buy back the company’s own shares up to MSEK 50 ahead of the 2025 Annual General Meeting. Under this share buyback programme and the previous buyback programme, 2,455,820 own shares were repurchased for MSEK 110 during the first nine months of the year.
- In May, Eva Vitell announced that she was leaving the Board of Arise at her own request, since she has accepted a position with Svenska Kraftnät.
- In May, the Lebo wind farm was completed. The wind farm is fully owned by Arise, has a capacity of 33 MW and is located in price area 3. Following the completion, Lebo is part of the Production segment.
- Arise announced in June that the earnout payment for the Ranasjö- and Salsjöhöjden project had been established at MEUR 6.6, which was received in the same month. Of the earnout amount, MEUR 4.2 had already been recognised whereby the earnings effect for the quarter amounted to MEUR 2.4.
- In June, Arise’s subsidiary Pohjan Voima entered into a cooperation agreement with Finsilva, one of Finland’s largest landowners. The cooperation opens up opportunities for the development of new wind and solar projects, which may also include battery storage. Five project areas have been identified with estimated potential of approximately 500 MW.
- In September, Arise entered into an agreement with Flower Infrastructure Technologies AB to sell the 40 MW battery project Pajkölen. The purchase price will amount to a maximum of approximately MSEK 30. Approximately MSEK 15 will be received at closing and the remaining part at completion of the grid connection. Closing took place after the end of the reporting period. Arise will not be responsible for construction management or asset management of Pajkölen after commissioning. In addition, the transaction also includes a potential earnout payment of approximately MSEK 15, which will be realised at certain prices for ancillary services during the first three years after commissioning.
Halmstad, 7 November 2024
Arise AB (publ)
For further information, please contact:
Per-Erik Eriksson, CEO Arise AB, +46 702 409 902
Markus Larsson, CFO Arise AB, + 46 735 321 776
This information is such information as Arise AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on 7 November 2024.
About Arise
Arise is a leading independent company that realises new green energy. The company develops, builds, sells and manages renewable electricity production. The company is listed on Nasdaq Stockholm.
Arise AB (publ), Linjegatan 7, 302 50 Halmstad, tel. +46 10 450 71 00, org.nr. 556274-6726, E-mail: info@arise.se, www.arise.se