• Power Generation: 456 gigawatt hours in the first half, a 20% increase from the same period last year.

• Proportionate EBITDA: EUR13 million for the first half, excluding non-cash items.

• Achieved Price: EUR42 per megawatt hour, with EUR49 in Q1 and EUR31 in Q2.

• Net Debt: EUR46 million at the end of Q2, reduced from EUR91 million at the end of Q1.

• Leikanger Sale: Sold for EUR53 million enterprise value, contributing to net debt reduction.

• Revenue: EUR6 million for Q2, excluding gain from Leikanger.

• EBITDA for Q2: EUR8 million, including EUR11 million gain from Leikanger sale.

• Operating Expenses: EUR8 million for the first half, with full-year guidance of EUR15-17 million.

• G&A Expenses: EUR5 million year-to-date, with full-year guidance of EUR9 million.

• Legal Costs: Reduced guidance to EUR7 million for 2024.

• Capital Expenditure: EUR4 million for the first half, with full-year guidance of EUR14 million.

• Cash Flow from Operating Activities: Negative EUR3.9 million for Q2, excluding working capital.

• Total Liquidity: Exceeds EUR120 million, including cash balance and undrawn RCF.

• Full-Year Revenue Outlook: EUR35-55 million, depending on achieved price scenarios.

• Full-Year EBITDA Outlook: EUR11-29 million, excluding Sudan legal costs.

• Warning! GuruFocus has detected 3 Warning Sign with STU:LYV.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Orron Energy AB (STU:LYV) reported a 20% increase in power generation for the first half of the year compared to the same period last year.

• The company successfully reduced its net debt from EUR 91 million to EUR 46 million by selling a non-core asset, enhancing its financial flexibility.

• Orron Energy AB has a strong balance sheet with more than EUR 120 million in available liquidity, providing significant financial firepower for growth.

• The company has a 40-gigawatt greenfield project portfolio across five countries, indicating strong potential for future growth.

• Orron Energy AB is part of the entrepreneurial Linden group, which has a history of delivering value for shareholders, providing a solid backing for the company's growth ambitions.

Negative Points

• The company experienced weaker-than-expected wind conditions in the first half of the year, resulting in power generation being 10% lower than anticipated.

• Electricity prices in the second quarter were significantly lower than the breakeven cost for new power generation technologies, impacting revenue.

• Orron Energy AB reported a negative EBITDA of EUR 3.4 million for the quarter, excluding non-cash items, due to lower revenues and increased costs.

• The company is trading at a 50% discount to its net asset value, indicating potential undervaluation in the public market.

• Despite having the mandate for share buybacks, the company has not yet proceeded with buybacks, which could be a missed opportunity given the current discount to asset values.