European Energy, a Danish developer, disclosed a loss for the first three months of 2024, recording an EBITDA deficit of €3.7m, compared to a €16.3m profit in the same period last year.
The company attributed the decrease in EBITDA primarily to a lower gross profit from the sale of energy parks and projects, which amounted to a loss of €7.9m in Q1 2024, compared to €7.9m profit in Q1 2023. Gross profit from power sales also decreased from €21.7m in 2023 to €17.5m.
European Energy cited lower power prices in Q1 2024 compared to the previous year, along with increased direct costs associated with power production due to the expansion of parks and higher production volumes, as contributing factors to the decline.
Despite the challenging start to the year, the company expressed confidence in the project sales outlook for the remainder of 2024. The board maintained its financial outlook for the year, expecting an EBITDA of €230m or approximately 30% growth, with a risk margin of +/- 10%.
“We maintain our financial outlook for 2024 of an EBITDA of €230m or a growth of approximately 30%, with a risk margin of +/- 10%,” stated the board. “Profits before tax will also grow, but at a lower rate than EBITDA.”
