Danish renewables developer European Energy A/S posted a profit before tax of EUR 6.4 million (USD 6.35m) in the second quarter of 2022, up by roughly 600% year-on-year, benefiting mostly from higher electricity prices.
Revenues, which European Energy earns from power sales and project divestment, stood at EUR 43.7 million, compared to EUR 26 million in the second quarter a year ago. Rising electricity prices were the key contributor to the difference, the company said in its earnings report.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter jumped by around 70% on the year to EUR 11.9 million.
During the reporting period, European Energy was able to sell one 8-MW wind farm project in Germany to record revenues of EUR 19.7 million. It said that despite the increasing net value of its assets and investor interest, it may start holding on to the assets a little while longer if power prices remain at a high level.
The company highlighted that it is on track to meet its financial targets for the full year. At the end of the semester, European Energy reached almost 57% of the EBITDA outlook and close to 70% of the profit before tax outlook for 2022, it added.
European Energy arrived at the end of the second quarter with a development pipeline of 24 GW, compared to 16 GW in the same period a year back.
(EUR 1.0 = USD 0.993)
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