February 14 (Renewables Now) - Swedish onshore wind farm developer Arise AB (STO:ARISE) today said its fourth-quarter 2019 net profit rose to SEK 98 million (USD 10.1m/EUR 9.3m) thanks to project sales.
The company booked a SEK-235-million loss for the full year, versus a profit of SEK 21 million a year back. This was due to Arise's participation in associate Sirocco Wind Holding AB, the owner of the 213-MW Jadraas wind farm in Sweden. Arise and its partner Sydvastanvind AB sold the particular entity to The Renewables Infrastructure Group (TRIG) at the end of February 2019 and warned at the time that the sale would result in a pre-tax loss of roughly SEK 245 million due to swap break costs. The underlying enterprise value on the deal is EUR 206 million.
Arise's after-tax profit for the year excluding the Sirocco participation stood at SEK 53 million. The sale of another project, the 231-MW Skaftåsen wind farm to Foresight, is expected to bring profits of SEK 210 million between 2019 and 2021.
More details about the Swedish firm's financial results are available in the table below.
|Amounts in SEK million||Q4 2019||Q4 2018||2019||2018|
|Recognised EBIT (loss)||128||28||(131)||118|
|Adjusted EBIT (loss) excluding associates||128||28||142||118|
|Recognised EBITDA (loss)||147||46||(56)||191|
|Adjusted EBITDA excluding associates||147||46||217||191|
|Recognised net profit (loss)||98||2||(235)||21|
|Net profit (loss) from associates||--||--||(273)||--|
|Own production (GWh)||89||85||333||295|
In spite of the lower winds in the fourth quarter, Arise boosted the production from its own wind power operations. The average income from its own production climbed to SEK 440 per MWh from SEK 437/MWh, of which SEK 323/MWh came from electricity sales and the rest came from electricity certificates.
In 2019, the average income from own wind power operations, however, slipped to SEK 436/MWh from SEK 512/MWh, with electricity sales bringing SEK 333/MWh.
At end-2019, Arise’s development portfolio included 850 MW of assets, of which almost 800 MW in Sweden and about 70 MW "in an active phase" in Scotland. The company estimates that if fully developed, this portfolio would require an investment of about SEK 8 billion. Its installed capacity an end-2019 was 139 MW.
(SEK 1.0 = USD 0.103/EUR 0.095)