July 18 (Renewables Now) - Swedish onshore wind farm developer Arise AB (STO:ARISE) saw its second-quarter 2019 net loss expand to SEK 29 million (USD 3.1m/EUR 2.8m) in spite of the increase in sales, triggered by improved wind conditions.
The company’s net loss more than doubled from SEK 14 million a year earlier due to a rise in depreciation and financial expenses and an “unexpected and late” decline in earnings from the 115-MW Svartnaes wind project in Sweden, caused by a court ruling concerning property tax. Lower market prices for electricity and certificates also hurt Arise's performance in April-June, the firm said on Wednesday.
Resulting from the lower revenue recognition in Development and management and reduced average production prices, earnings before interest, tax, depreciation and amortisation (EBITDA) fell to SEK 9 million from SEK 24 million. Revenues improved to SEK 67 million from SEK 48 million.
As the average market prices dropped, the average income from the company’s own power production decreased to SEK 394 per MWh from SEK 534/MWh, of which SEK 313/MWh came from the sale of electricity. Production from Arise’s own wind power operation was up to 73 GWh from 65 GWh thanks to stronger winds than in the year-ago period.
More details about the company’s second-quarter and six-month performance are available in the table below.
|Amounts in SEK||Q2 2019||Q2 2018||H1 2019||H1 2018|
|Recognised EBIT (loss)||(10m)||6m||(261m)||18m|
|Adjusted EBIT (loss) excluding associates||(10m)||6m||11m||(18m)|
|Recognised EBITDA (loss)||9m||24m||(223m)||54m|
|Adjusted EBITDA excluding associates||9m||24m||49m||54m|
|Recognised net profit (loss)||(29m)||(14m)||(317m)||(27m)|
|Net profit (loss) excluding associates||(29m)||(14m)||(30m)||(27m)|
|Own production (GWh)||73||65||175||141|
Arise noted that its first-half earnings were considerably impacted by the sale of its 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.
At end-June, Arise’s installed capacity was 240.7 MW, while its project portfolio included over 1,000 MW in Sweden and around 70 MW of schemes “in an active phase” in Scotland.
(SEK 1.0 = USD 0.107/EUR 0.095)