Swedish wind project developer Eolus Vind AB (STO:EOLU-B) faced a challenging first quarter in 2024, marked by negative operating results attributed to a dearth of new project sale transactions. The company reported a significantly higher loss compared to the same period last year, citing the impact of subdued project sales activity on its financial performance.
In the first three months of the year, Eolus recorded a loss before interest and tax of SEK 29 million (USD 2.66 million/EUR 2.47 million), a notable increase from SEK 12 million reported in the corresponding quarter of the previous year. The net loss more than doubled to SEK 32 million from SEK 15 million, as indicated in the company's financial statement released on Tuesday.
The decline in net sales further compounded Eolus's financial woes, dropping to SEK 44 million from SEK 277 million in the first quarter of 2023.
CEO Per Witalisson acknowledged the variability in the company's earnings across quarters, emphasizing the influence of completed sales processes and revenue recognition for ongoing construction in sold projects. Witalisson stated, “Eolus's earnings will continue to vary between quarters, mainly due to completed sales processes and revenue recognition for ongoing construction in sold projects.”
Witalisson further explained that earnings from projects under construction tend to be lower during the first quarter due to reduced activity in construction projects during the winter months.
Despite the challenging financial results in Q1 2024, Eolus remains optimistic about its long-term prospects and ongoing projects. The company continues to focus on advancing its portfolio and pursuing opportunities for growth in the renewable energy sector.
