OX2, the renewable energy developer, has disclosed negative operating income and profit for the first quarter of 2024, attributing the downturn to delayed project sales during the period.
Operating income plummeted to negative Skr110m (negative €9.4m) in Q1 2024, compared to Skr102m in the same period of the previous year. Similarly, profit dropped to negative Skr58m, down from Skr89m in Q1 2023.
OX2 CEO Paul Stormoen addressed the quarterly setbacks, stating, “Our business involves quarterly fluctuations and we fully understand that it is difficult to assess OX2's development based on individual quarters. In order to make a fair assessment it is relevant to look at longer trends.”
Stormoen emphasized the company's track record of achieving an annual operating income level of just over Skr1bn for the past two years, despite significant investment-related costs.
He reiterated the company's forecast of increased operating income in 2024, with expectations that earnings will be largely driven by the sale of onshore wind projects.
Stormoen highlighted the prolonged decision-making processes of industrial buyers, which contributed to delays in finalizing sales. However, he noted increased activity and capital inflow among financial investors in the beginning of the year.
In Q1 2024, OX2 acquired 50MW of projects, a notable decrease from the 952MW acquired in Q1 2023. Additionally, no capacity was handed over in Q1 2024, compared to 171MW in the same period of the previous year.
Despite the challenges faced in the first quarter, OX2 remains optimistic about its prospects for the remainder of the year, citing ongoing project development and anticipated improvements in sales performance.
