European Energy A/S: Experiences progress in European markets during Q1 2022
Company announcement 9/2022 (16.05.2022)
European Energy saw progress in both power and asset sales in Central and South Europe making the basis for a record quarter. The EBITDA for the company reached EUR 65 million and profit before tax EUR 63 million.
Progress in both power and asset sales in Central and South Europe ensured a record quarter for European Energy with an EBITDA of EUR 65 million and profit before tax of EUR 63 million.
The strong numbers originate from power sale and divestment of projects mainly in central and south Europe. The power sale reached the highest level in Q1 and contributed EUR 26 million in the first quarter of 2022. That is an increase of 144% compared to Q1 in 2021 (EUR 11 million).
In total, European Energy sold more than 229 GWh of renewable energy in Q1 2022 which is an increase of more than 50 percent from 151 GWh in Q1 2021.
The divestments of solar parks in Italy and Denmark have also contributed positively to the financial result.
As European Energy continued to establish its Power-to-X business throughout Q1, the strategy remains to own every step of the supply chain and ensure the lowest cost of the final product, which can be either green hydrogen or e-methanol.
A good example hereof is the recent order of one of the world’s largest electrolyzer for e-Methanol production that European Energy placed at Siemens Energy. To secure a competitive price on the final product, it is vital to control every step of the supply chain.
At the other end of the value chain, we have also strengthened the offtake of the e-Methanol or e-fuel. As one of Maersk’s preferred partners, European Energy signed a letter of intent to supply up to 300,000 tons of e-methanol per year starting in 2025/26.
As a result of the war in Ukraine and China’s Covid-19 lockdown, there is a risk in further supply chain constraints that might result in delays in finalizing some projects. European Energy expects this to be counterbalanced by income from power sales.
European Energy maintains its outlook of EUR 135 million EBITDA and EUR 100 million profit before tax for 2022.
For further information, please contact Investor Relations: investor.relations@europeanenergy.dk.
This announcement has been made in accordance with the EU Market Abuse Regulation (Regulation (EU) no. 596/2014, as amended).
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