Rabbalshede Kraft posts wider loss in H1

The Bratton wind park in Sweden. Source: Rabbalshede Kraft (www.rabbalshedekraft.se).

Swedish wind power company Rabbalshede Kraft AB saw its net loss expand to SEK 16.3 million (USD 1.9m/EUR 1.6m) in the first half of 2020 from SEK 8.2 million a year earlier, amid a drop in electricity sales.

In spite of the low market prices, the company closed the six months with slightly higher revenues than expected, its CEO Peter Wesslau said on Wednesday. This result came as the company hedged the electricity price for a large share of its production, which together with the higher production helped compensate for the low electricity prices in the period.

Excluding co-owned farms, total electricity generation in January-June stood at 335.8 GWh, down from 272.2 GWh a year back but above normal thanks to the favourable wind conditions. In the second quarter alone, production at the company’s own wind farms was 161 GWh, with the availability of its own turbines hovering around 98%.

More details about the company’s financial performance are available in the table.

Amounts in SEK thousand	Q2 2020	Q2 2019	H1 2020	H1 2019
Net sales	32,815	49,687	112,114	128,548
Total operating income	40,404	55,796	126,026	144,087
Total operating costs	(62,769)	(62,491)	(129,316)	(133,394)
EBIT (loss)	(22,365)	(6,694)	(3,290)	10,692
Net profit (loss)	(30,006)	(13,717)	(16,255)	(8,152)
Cash flow from operating activities	(16,496)	7,994	50,403	55,225

The reporting period was extensively marked by the COVID-19 health and financial crisis. “Due to prevailing circumstances and the ongoing pandemic, the market for selling new management agreements has largely come to a complete standstill. However, our ongoing management activities with existing customers and our own parks are not affected,” the CEO said.

The construction of the 16.5-MW Gardhyttan project has been finalised, while the construction of the Hogen and Skollunga projects, with a combined capacity of 21 MW, will be halted during the summer and is planned to be completed in the third and fourth quarters of this year.

(SEK 1.0 = USD 0.115/EUR 0.097)

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