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Eurowind Energy A/S
Mariagervej 58B, 9500 Hobro, CVR 30006348
Industry: Construction of utility projects
Company type
Limited Corporation
Established
2006
Size
Medium
Employees
99
Revenue
18
MDKK
Gross profit
-19,941,088
DKK
Operating Profit (EBIT)
-83,351,360
DKK
Profit for the year
2,062
MDKK
Equity
5,086
MDKK
Advertising protection
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Rank Profit for the year
Rank in industry
1/478
"Top 10%"
Rank in Denmark
72/350,493
"Top 10%"
Top management top 3
Jens Rasmussen 97 | CEO |
Søren Bæk Just 20 | Director |
Board top 3
Gert Vinther Jørgensen 24 | Chairman of board |
Søren Rasmussen 101 | Vice chairman |
Jakob Kirkegaard Kortbæk 18 | Boardmember |
Legal owners top 3
33.33-49.99% | Ewe Holding Aps | DK |
33.33-49.99% | Norlys Holding A/S | DK |
Rights certificate
Selskabet tegnes af den samlede direktion, bestyrelsesformanden sammen med den administrerende direktør, to næstformænd for bestyrelsen sammen med en direktør eller af den samlede bestyrelse.
Company information based on CVR
Name | Eurowind Energy A/S |
Alternate names | Energimidt Renewables A/S, Eniig Renewables A/S, Windpartners A/S Show more |
CVR | 30006348 |
Address | Mariagervej 58B, 9500 Hobro |
Industry | Construction of utility projects for electricity and communications [422200] |
Established | 20-11-2006 (17 yr) |
First financial statement period | 20-11-2006 to 30-06-2007 |
Company type | Limited Corporation |
Number of employees | 174 (man years:163) |
Advertising protection | Yes |
Auditor | Bdo Statsautoriseret Revisionsaktieselskab since 20-11-2006 |
Financial statement period | 01-07 to 30-06 |
Bank connection | Nykredit Bank |
Company capital | 1,665,820 DKK 878,411 DKK (25-06-2012 - 09-01-2019) 860,085 DKK (14-07-2010 - 24-06-2012) 621,600 DKK (07-05-2009 - 13-07-2010) 619,528 DKK (11-02-2008 - 06-05-2009) 615,384 DKK (12-07-2007 - 10-02-2008) |
Articles of assoc. last | 10-11-2021 |
Member of industries
- Construction of utility projects for electricity and communicationsNACE6 containing 158 comp.
- Construction of utility projectsNACE3 containing 844 comp.
- Civil engineeringNACE2 containing 1,547 comp.
- ConstructionNACE1 containing 50,007 comp.
Purpose
Selskabets formål er udvikling, etablering, køb, salg, ejerskab samt drift og administration af anlæg, der producerer energi fra vedvarende energikilder, samt hermed beslægtet virksomhed inden for vedvarende energi
Financial Statement
2023 | 2022 | 2021 | |
---|---|---|---|
Currency/unit | 000' DKK | 000' DKK | 000' DKK |
Revenue | 18,121 -78% | 82,628 +194% | 28,070 +177% |
Gross Profit | -19,941 - | -24,102 - | -12,126 - |
Profit for the year | 2,062,143 +208% | 670,271 +526% | 107,118 +76% |
Equity | 5,086,327 +67% | 3,048,913 +50% | 2,035,013 +30% |
Total Assets | 8,662,367 +74% | 4,973,646 +38% | 3,610,590 +25% |
Mangement review summary
Management's review
Management's review |
Letter from the CEO |
High performance |
- Ramping up the business |
Dear reader, |
The financial year 2022/23 was positive for us as it was |
financially rewarding; but also because it showed that |
our long term strategy worked well – even through the |
most dramatic 12 months experienced in the European |
energy industry in the past 50 years. |
2022/23 was unique as it was what can best be |
described as a “black swan event”. The black swan |
theory is a metaphor that describes an event that |
comes as a surprise, has a major effect, and is often |
inappropriately rationalised after the fact with the |
benefit of hindsight. The term is based on an ancient |
saying that presumed black swans did not exist – a |
saying that became reinterpreted to teach a different |
lesson after they were discovered in Australia. |
The combination of drought in Southern Norway and |
France meant that the war in Ukraine and subsequent |
reduction of Russian gas to Europe made the energy |
markets highly volatile. This was combined with high |
inflation and steadily growing interest rates. |
In this market we managed to make a healthy profit |
on our activities in Eurowind Energy, while our minority |
ownership in Norlys Energy Trading also provided |
substantial income. |
This allows us to report a gross profit of EUR 188 million |
for the year, compared to EUR 127 million in 2021/22. The |
profit before tax reached EUR 315 million, as opposed |
to EUR 115 million in the previous year, it is worth noting |
that the revenue generated was without the sale of any |
operating assets in the past 12 months. |
For us it is also important to mention that we see the |
black swan event of 2022/23 as an outlier. Already, in |
late 2022, we could see the markets adjusting to the |
new reality and the energy prices dropping accordingly. |
Although, we benefited from temporarily high energy |
prices, we believe that stable and affordable energy |
prices provides better long-term market conditions for |
the energy transition. |
Our long-term strategy to be present in the full renewable |
energy value chain also showed its value during the |
tumultuous period on the energy markets. We managed |
to increase our development pipeline from 25 to 34 GW, |
while we had a record high construction activity. This is |
reflected in our operating assets which grew to 1.1 GW – |
the majority being wind parks in Northern Europe. |
“ In this market we |
managed to make a |
healthy profit on our |
activities in Eurowind |
Energy. |
In 2022/23, we built on our Energy Centre concept by |
officially entering the biogas market. We acquired |
a portfolio of development projects in Denmark and |
to ensure we have the right competencies, we also |
welcomed the German biogas company, Greenline, into |
the Eurowind Energy family. Being a solid player within |
biogas is a prerequisite to realising our plans of large- |
scale energy centres with solar, wind turbines, biogas |
production, PtX. |
Touching on acquisitions, it is important to note that |
we also acquired the majority stake in our French joint |
venture, Ventelys. Ventelys is already a well-known |
company in the French energy industry, which means |
that we will continue to use the existing name and brand |
in France. |
In the financial year, we also inaugurated several new |
energy facilities, namely Wind Park Overgaard in |
Denmark, Wind Park Knöstad in Sweden, Windpark |
Kortekallio in Finland and Solar Park Triana in Portugal. |
Especially Knöstad, Kortekallio and Triana are worth |
noting as they are our first operating assets in Sweden, |
FInland and Portugal. It is always an important |
moment for any market when it progresses from pure |
development to actual power production. That is when |
our colleagues, investors and other stakeholders can see |
tangible results in that specific market. |
These achievements are only possible because we have |
the right strategy, owners with the right perspective on |
value creation and a unique group of employees that |
continue to deliver at a very high level. We hired 196 |
new employees in the financial year and we will spend |
significant resources to ensure that they get the right |
introduction to the company and the Eurowind Energy |
DNA. |
Our portfolio of development projects combined with |
a strong financial position and a very special group of |
people means we are confident that we will reach our |
goal of becoming a power major – even if we have to |
face more black swan events getting there. |
Jens Rasmussen, |
CEO of Eurowind Energy |
“ Our portfolio of |
development projects |
combined with a strong |
financial position and |
a very special group |
of people means we |
are confident that we |
will reach our goal of |
becoming a power |
major. |
Always in motion |
“ because we have |
the right strategy |
and a unique group |
of people |
Description of development in activities and financial affairs
World trends | |||
“ As a result, there is a | |||
rising need for renewable | |||
power producers to | |||
stabilise the output. | |||
Since the Russian invasion of Ukraine in February 2022, | |||
energy security has jumped to the top of the agenda | |||
all over the world. With no immediate end to the war in | |||
sight, it has become clear that power sector policies and | |||
investments will increasingly bring energy security and | |||
the energy transition together. | |||
The energy supply crisis that arose in 2021/22 will likely | |||
persist in the years to come. Many of the underlying | |||
reasons for the crisis remain, even though markets and | |||
nation states are getting better at mitigating the | |||
short-term impacts. However, the world’s shortage | |||
of fuels and power - the result of underinvestment in | |||
energy infrastructure, a strong post - COVID-19 economic | |||
rebound, and the Russia-Ukraine war - will bolster many | |||
power markets’ energy transition. | |||
Indeed, as attention fell on energy prices and inflation, | |||
policymakers have passed momentous energy transition | |||
policies, such as the Inflation Reduction Act (IRA) in the | |||
United States and REPowerEU in the European Union; | |||
and more will come that will rapidly translate into real | |||
investments in green energy. | |||
The power sector is sensitive to gas and coal price | |||
fluctuations, and renewable energies offer governments | |||
and investors a cheap source of domestic generation on | |||
a levelised cost basis, a refuge from volatile fuel prices, | |||
and a safeguard against assets being stranded on the | |||
road toward decarbonisation. Already in 2022, although | |||
gas and coal generation increased globally, generation | |||
from wind and solar grew much faster (nuclear | |||
generation declined and hydro use remained stable). | |||
Renewable energy continued to grow strongly in 2022, | |||
with solar and wind reaching a 7.5% share of primary | |||
energy consumption. This was an increase of nearly | |||
1% over the previous year. Renewable power (excluding | |||
hydro) grew 14%, slightly below the previous year’s growth | |||
rate of 16%, according to Enerdata. | |||
While renewable power expanded at high rates, fossil | |||
fuels maintained an 82% share of total primary energy | |||
consumption. Natural gas and coal demand stayed | |||
nearly flat with oil rebounding close to pre-pandemic | |||
levels. This is down from an 87% share in 2010. At that rate | |||
of decline, it would be nearly 200 years before fossil fuel | |||
consumption reached zero. | |||
Human actions since the Industrial Revolution, primarily | |||
the burning of fossil fuels, have caused greenhouse | |||
gases to rapidly rise in the atmosphere. As carbon | |||
dioxide, methane, and other gases increase, they act | |||
as a blanket, trapping heat and warming the planet. In | |||
response, Earth’s air and ocean temperatures rise. This | |||
warming affects the water cycle, shifts weather patterns, | |||
and melts land ice — all impacts that can make extreme | |||
weather worse. | |||
The Intergovernmental Panel on Climate Change (IPCC) | |||
Sixth Assessment Report (2023) showed that changes in | |||
many extreme weather and climate events have been | |||
observed since about 1950. There is evidence of a human | |||
contribution to changes in temperature extremes, heavy | |||
rainfall events, and an increase in extreme high sea levels | |||
in a number of regions. | |||
As the global temperatures have risen, the frequency of | |||
extreme weather events have increased along with it. | |||
Heatwaves, droughts and extreme rainstorms used to | |||
happen once in a decade on average, but now | |||
• Heatwaves are 2.8x more frequent | |||
• Droughts are 1.7x more frequent | |||
• Extreme rainstorms are 1.3x more frequent | |||
By 2030, the global surface temperature is expected to | |||
rise 1.5°C above the Earth’s baseline temperature, which | |||
means that | |||
• Heatwaves would be 4.1x more frequent | |||
• Droughts would be 2x more frequent | |||
• Extreme rainstorms would be 1.5x more frequent | |||
The continued energy transition and development | |||
of new technologies are required to stop this climate | |||
development. | |||
Breakthrough for energy storage | |||
Energy resilience is primarily thought of as ensuring | |||
energy continuity at times of grid supply disruption – but | |||
the energy landscape is now seeing disruption in all areas | |||
of energy strategy, and it is crucial to be resilient to a | |||
variety of challenges. Keeping energy prices stable amid | |||
volatility is driving resilience to economic uncertainty; | |||
what industry experts call “economic resilience.” | |||
For instance, in some areas of the world, the energy | |||
transition is leading to significant changes in tariffs | |||
and pricing. This is especially true for markets with high | |||
electricity needs at times of peak energy usage grid- | |||
wide. As a result, there is a rising need for renewable | |||
power producers to stabilise the output, either from | |||
storage or combining generating technologies that | |||
provide a high number of full-load hours. | |||
Even after years of rapid growth, BloombergNEF predicts | |||
that the global energy storage market will grow 30% | |||
annually to 2030, with the world’s biggest storage market | |||
currently in the United States. The agency is projecting | |||
that energy storage installation worldwide will reach 411 | |||
GW by the end of 2030 – 15 times the 27 GW of storage | |||
online at the end of 2021. | |||
The reason behind this massive growth projection | |||
is that decarbonising the grid requires thousands of | |||
megawatts of baseload resources that run continuously | |||
for an extended period – such as coal, nuclear, or natural | |||
gas – to be replaced with resources like wind and solar. | |||
The switch will necessitate a widespread deployment | |||
of energy storage. This technology complements and | |||
optimises renewables while ensuring the grid can keep | |||
energy supply and demand in balance. | |||
In markets like Europe, Texas and California, pumped | |||
storage and batteries increasingly temper the swings in | |||
solar and wind generation. By 2025, China is targeting 62 | |||
GW of pumped storage (a 72% increase from today) and | |||
30 GW of batteries. | |||
Supply chains to slowly shift toward localisation | |||
In 2022, supply chain disruptions owing to trade | |||
sanctions, China’s COVID-19 lockdowns, and material | |||
shortages, raised the cost of the raw materials | |||
and technologies used for power generation and | |||
transmission. At the same time, the high pace of | |||
inflation led central banks around the world to raise | |||
interest rates, in turn increasing the cost of financing for | |||
energy infrastructure projects. Despite these hurdles, | |||
the competitiveness of renewables is increasing and | |||
investments in clean energy will accelerate in the coming | |||
years. | |||
Supply chains will likely start seeing redefined trade | |||
routes and a slow shift toward localisation in 2023 and | |||
beyond. Sanctions on Russia, a top global supplier of | |||
nickel, refined copper, and steel, are redirecting the | |||
country’s output toward China. The United States and | |||
Europe could meanwhile increase imports from Australia | |||
for nickel, Chile and Peru for copper, and Southeast Asia | |||
for steel, for example, although changes will be gradual. | |||
Of great consequence, concerns over growing tensions | |||
between the United States and China are spurring policy | |||
ambitions for domestic supply chains. The Defense | |||
Production Act and the IRA in the United States, as well | |||
as the REPowerEU initiative in the European Union, aim | |||
to reduce the dependence on China for rare earths, | |||
photovoltaic modules, wind turbine components, and | |||
more. | |||
“ Supply chains will likely | |||
start seeing redefined | |||
trade routes and a slow | |||
shift toward localisation in | |||
2023 and beyond. | |||
“ Renewable energy | |||
continued to grow | |||
strongly | |||
Strategy | |||
Eurowind Energy’s long-term aspiration is clear | |||
To become a power major by 2030. | |||
The power major aspiration was developed and | |||
approved by the Board of Directors in the spring of | |||
2022 and the key elements of the strategy remains | |||
unchanged: an aggressive growth strategy – and at | |||
the same time Eurowind Energy has made the strategic | |||
decision to hold on to operating assets in order to ensure | |||
a reoccurring revenue that can be re-invested in project | |||
development and construction of new assets. | |||
Eurowind Energy has approximately 1 GW of wind power | |||
assets in Europe and a 71 MW solar portfolio – located | |||
from Portugal in the south, to Finland in the north. | |||
Combined with the ownership share in Norlys Energy | |||
Trading, the Group has an excellent financial position to | |||
continue the march towards power major status. | |||
The aspiration and the outset is unchanged, but | |||
Eurowind Energy has still used 2023 to refine the means | |||
that will make the company a power major. | |||
There are, broadly speaking, three revenue streams as | |||
an independent power producer. The first is, the sale | |||
of power. The second is balancing services, where the | |||
independent power producer sells ancillary services to | |||
the grid provider, which helps stabilise the grid. The third | |||
revenue stream is to provide security of supply to society. | |||
Today, all renewable independent power producers sell | |||
their power. However, very few generate measurable | |||
income from ancillary services and security of supply. | |||
The barriers are historical practices and are also | |||
regulatory and technical in nature. Eurowind Energy | |||
has accelerated the work to find solutions to the | |||
challenges keeping independent power producers | |||
out of the balancing market and to ensure income | |||
from guaranteeing security of supply. The market for | |||
balancing services is dominated by power plants running | |||
on fossil fuels and the bidding system favours those | |||
power producers. But as the fossil fuels power plants are | |||
being phased out, the system will need to open for other | |||
bidders, including independent power producers in the | |||
renewable energy industry. This is why Eurowind Energy | |||
is installing batteries at several parks, including the | |||
hybridpark Greenlab Skive in Denmark testing different | |||
storage solutions. | |||
Eurowind Energy estimates that making a business of | |||
security of supply will take longer. However, projects, | |||
such as Green Hydrogen Hub, are playing that role for | |||
the system and will eventually be rewarded for it. Again | |||
it is a role that was previously taken by fossil-fuel-based | |||
power plants and interconnectors between markets. The | |||
interconnectors will still play a large role in the system, | |||
while power plants running on fossil fuels are getting few | |||
and far between. | |||
Being a participant within security of supply and | |||
balancing services, will extend our cooperation with | |||
Norlys Energy Trading, which again maximises the | |||
earnings potential of the Group’s power production. | |||
Geography | |||
Eurowind Energy is present in 16 countries, either | |||
through subsidiaries or through partnerships with local | |||
developers. It is the ambition to expand to 1-2 new | |||
markets every year. | |||
In order to minimise the currency risk, navigate cultural | |||
differences and issues with time zones, Eurowind Energy | |||
has previously seen the Eurozone as its primary area, but | |||
it has now expanded to the OECD area as the natural | |||
geographical boundary. In the future, this will remain the | |||
focus for the establishment of new markets. However, | |||
should attractive opportunities arise outside these areas, | |||
these will be evaluated thoroughly. Throughout 2022/23, | |||
several markets have been evaluated to determine the | |||
attractiveness, but so far no decision has been made | |||
regarding new market entries. The evaluation process is | |||
ongoing and changes in political landscape, currency | |||
risk and business opportunities are always noted with | |||
interest. | |||
Technology | |||
Eurowind Energy is a wind developer that also has the | |||
ability to develop, construct and operate solar, batteries, | |||
electrolysers and other PtX technologies. The distribution | |||
in technology for the development pipeline is close to | |||
50% wind and 50% solar capacity wise, with Denmark | |||
and Poland carrying the majority of the solar portfolio. | |||
However production wise, the ratio will be closer to 75% | |||
wind and 25% solar. | |||
Eurowind Energy continuously work with the technologies | |||
that will form Energy Centres in the future. As a result, | |||
experts are working with batteries, heat pumps, | |||
electrolysers and other technologies in order to facilitate | |||
the establishment of Energy Centres. However, the basis | |||
for Energy Centres is still power-generating technologies, | |||
such as solar and wind turbines. | |||
In 2023, Eurowind Energy entered the biogas market | |||
by acquiring a portfolio of Danish development | |||
projects, with the most mature expected to be ready for | |||
construction in 2024. The biogas plants will, as a general | |||
rule, be co-located with the Group's power-producing | |||
assets, most likely in Energy Centres. The geographical | |||
starting point will be Denmark and countries where the | |||
agricultural sector shares similarities with the Danish | |||
sector, e.g. Germany, Poland and United Kingdom. | |||
The biogas is expected to be produced without excessive | |||
use of accelerators, even though this could prolong the | |||
gasification process from 40 to 100 days. The facilities | |||
will produce oxygen, CO2, biogas, and fertiliser, but | |||
the gases have the potential to be processed further, | |||
most likely in combination with hydrogen, to produce | |||
e-fuels, methanol etc. Furthermore, the gas can be | |||
processed into different products to be used in industrial | |||
production. The final products will depend, to a great | |||
extent, on the local off-taker. | |||
2023 was also the year where Eurowind Energy could | |||
document the efficiency of hybrid parks with solar and | |||
wind. St. Soels went into operation in 2022 and less than | |||
a year later, data showed that the number of full load | |||
hours was competitive with offshore wind. | |||
According to the Danish Energy Agency, the expected | |||
number of full load hours for the Thor Offshore Wind | |||
Park in the North Sea, which is expected to come into | |||
operation in 2026, is around 4,875 full load hours. The | |||
Thor Offshore Wind Park will consists of 72 Siemens- | |||
Gamesa 14 MW 14-236 DD turbines. The newest offshore | |||
park in operation in Denmark is Kriegers Flak, located in | |||
the Baltic Sea, with approximately 4,250 full load hours | |||
during a year. The onshore hybrid park, St. Soels, which | |||
consists of 7 V126-3.6 MW Vestas turbines and 19 MW | |||
solar has, in its first year of operation, generated 4,650 | |||
full load hours, making it more efficient than offshore | |||
wind farms in the Baltic Sea. | |||
“ St. Soels went into | |||
operation in 2022 and | |||
less than a year later, | |||
data showed that the | |||
number of full load hours | |||
was competitive with | |||
offshore wind. | |||
Power-to-X – the future | |||
The Power-to-X (PtX) sector has come to stay and has | |||
witnessed significant expansion, not just within Eurowind | |||
Energy, but on a global scale as well. We are of the firm | |||
belief that PtX will hold a fundamental role in the times to | |||
come. | |||
Eurowind Energy holds a strong and proven track record | |||
of accomplishments in the development, construction, | |||
and operation of renewable resources. By combining | |||
our expertise in this area and embracing the potential | |||
to convert green energy into hydrogen or e-methanol, | |||
Eurowind Energy will extend its coverage across the value | |||
chain. | |||
In 2021/22, Eurowind Energy made substantial | |||
advancements in the field of PtX (Power-to-X), which is | |||
particularly marked by the commissioning of two hybrid | |||
energy parks and last summer’s declaration regarding | |||
the construction of five energy centres in Denmark. These | |||
centres will emerge as key facilities for the large scale | |||
generation and processing of green energy; collectively | |||
possessing a total power generation capacity of around | |||
2.5 GW. | |||
Last year, we made several strategic partnerships, | |||
through Green Hydrogen Hub and Greenlab Skive | |||
in particular. The objective for Green Hydrogen | |||
Hub is to develop the value chain for hydrogen and | |||
energy storage networks to enable the integration of | |||
renewables. The project is progressing as planned. The | |||
same applies for Greenlab Skive – the wind park has | |||
been fully constructed and commissioned. Further, the | |||
solar part of the project will be operational during the | |||
coming financial year. At both Greenlab Skive and the | |||
two hybrid energy parks in Veddum Kær and St. Soels, | |||
we see promising possibilities for further development | |||
capabilities and growth, which can include the | |||
integration of electrolysis and battery technologies. | |||
During this year, we continued to advance our Energy | |||
Centre concept by officially entering the biogas market | |||
through strategic acquisitions. | |||
Establishing a strong presence in the biogas domain is | |||
essential for the successful execution of our ambitions | |||
concerning large scale energy centres that include | |||
solar, wind turbines, biogas generation, Power-to-X | |||
technologies, and additional advancements up the value | |||
chain. | |||
Heating | |||
During the year, advancements have been made on | |||
projects within Denmark's district heating sector. Our | |||
initiatives in Denmark are geared towards supporting | |||
green heating for households. This is achieved by utilising | |||
heat pumps that derive power from the green energy | |||
obtained from our parks, subsequently generating | |||
heated water for various uses. | |||
Our business model | |||
“ We build energy projects. | “ We choose the proper | “ We prepare infrastructure. | |
Then we produce power. | location. Then we implement. | Then we deliver. | |
1. Opportunities | 2. Development | 3. Local involvement | |
Identifying opportunities are essential for creating business. | When an area is assessed as suitable, we carry out the | Local residents and stakeholder involvement is essential | |
Identification and screening opportunities are done through | necessary steps in cooperation with the authorities, both | as early as possible in the process. It is important to | |
our own offices, our partnerships, joint ventures and | national and local, e.g. concerning permits. Our close | understand and address any concerns that they may | |
external parties. We have in-depth knowledge of screening | relationship with landowners and developers ensures | have. At Eurowind Energy, the importance of a broad | |
the opportunities and only execute on the best. Once | that we have a clear view of the risks involved in the | involvement is vital. Typically, local involvement includes | |
the sites have been identified, a thorough resource | development of the projects. | close contact with but not limited to: close neighbours of | |
assessment and analysis will be performed, including | sites, landowners, local residents and municipalities. | ||
wind measurements, negotiation of land leases, access to | |||
the area with landowners and grid connection, as well as | |||
assessment of environmental impacts. | |||
New technologies - enablers | |||
Power-to-X | Heating | ||
See page 20 | Renewable energy is used to power heat | ||
Renewable Energy is used in downstream | pumps, which creates heated water for | ||
technologies to produce green hydrogen | district heating to households. | ||
through electrolysis and by adding CO2 | |||
creating e-methanol. | |||
“ We build energy projects. | “ We manage your investment. | ||
Then we produce power. | Then we make it grow. | ||
4. Construction | 5. Power purchase agreement | 6. Operation | |
Before construction, we secure that all necessary | As more and more markets are moving away from | As part of our strategy of being an independent power | |
permits are available, including legal due diligence of | subsidies, corporate power purchase agreements (PPA) | producer, we aim to keep our ownership of the projects | |
the project’s permits as well as a financial due diligence. | have begun to fill the need for long-term and secure | and assets. After construction, the management of | |
We have a strong track record for delivering projects | power sales. PPAs are long-term contracts with a business | the parks is handed over to our asset management | |
and infrastructure, such as cable and road, on time and | to deliver renewable power at an agreed price. PPAs are | department to optimise the parks, which includes the | |
on budget. The construction takes place in cooperation | typically made before the construction phase, but can | technical, commercial and financial aspects. | |
with, and in compliance with, all parties involved in the | also occur at a later project stage. | ||
project. After a successful and turn-key construction, | |||
the wind turbines or solar plants are prepared for grid | |||
connection and commissioning. | |||
Key themes – marked by | |||
exceptional achievements | |||
Milestones for the year | |||
• Highest electricity sales and profit in the history of the company | |||
• Record high construction activity | |||
• Highest installed capacity within one year | |||
• Reaching more than 1 GW of own installed capacity | |||
• Started construction of a 237 MW solar park - Eurowinds largest single project | |||
Another exceptional year - achieving the highest | |||
electricity sales and profit | |||
This year marked yet another remarkable year for | |||
Eurowind Energy. For the second year in a row, we | |||
reached the highest sale of electricity and profit | |||
ever generated in the history of the Group. This was | |||
generated in a very turbulent year with volatile power | |||
prices, high inflation and increasing interest rates proving | |||
our business model and strategy are strong, well founded | |||
and resilient. The Group’s position as an independent | |||
power producer and playing a substantial role in the | |||
renewable energy market, is further strengthened and | |||
consolidated. | |||
The electricity sale increased by 43%, from EUR 148 | |||
million to EUR 213 million; bringing the profit before tax to | |||
EUR 315 million from EUR 115 million last year. | |||
The main drivers for these results were | |||
• Continued high power prices, peaking in August 2022 | |||
and decreasing and stabilising from January 2023 | |||
and the remainder of the financial year | |||
• 258 MW new operational parks were grid connected | |||
• Strong result from Norlys Energy Trading | |||
The power prices continued to rise, peaking in August | |||
2022 and hereafter the prices decreased and stabilised | |||
in our core markets, Denmark and Germany, at around | |||
EUR 90 per MWh. | |||
During the year, 258 MW were grid connected, increasing | |||
both our revenue and profits. We grid connected in | |||
seven countries, of which four were new countries, | |||
bringing further geographical diversity to our operational | |||
activities. | |||
Our affiliated company, Norlys Energy Trading continued | |||
to expand its operations and its presence, and was | |||
able to capitalise on the fluctuating energy prices in the | |||
European market, which led to a strong profit. | |||
Ramping up the business | |||
Pipeline | |||
During the year, the Group grew the pipeline by 35% to | |||
34 GW. We expect to maintain strong growth in 2023/24, | |||
but will also have a strong focus on qualifying the current | |||
pipeline. | |||
The expansion has been achieved through a | |||
combination of heightened focus and dedication to | |||
developing our in-house projects, acquisitions executed | |||
in both prior and ongoing years, and collaborative | |||
partnerships and agreements with local development | |||
companies in Denmark, the United States, and Europe. | |||
With our diversified presence and our early engagement | |||
in projects, we are assured that we possess the | |||
necessary scale and market variety to achieve our goals. | |||
Power-to-X | |||
Besides developing wind and solar projects, we are | |||
focusing on maturing our presence within the Power-to-X | |||
business area. Last year we made strategic partnerships | |||
especially through Green Hydrogen Hub and Greenlab | |||
Skive. At Greenlab Skive, we commissioned 13 turbines | |||
during the year and are currently constructing the solar | |||
park. | |||
The Power-to-X industry is expected to grow significantly | |||
in the coming years, and we have a strong ambition to | |||
utilise our expertise and strong global presence to bring | |||
forward solutions on a global scale, which is exemplified | |||
by our hybrid parks and our Energy centre concept. | |||
Record high construction activity | |||
Our EPC-department (Engineering, Procurement and | |||
Construction) have had yet another busy year energising | |||
several new parks in seven countries. At the end of our | |||
financial year, the EPC department was constructing | |||
at 22 sites in ten countries with a total capacity of 763 | |||
MW. Our construction pipeline has larger projects both | |||
within solar and wind where solar plays a larger role than | |||
previously. Together with our Bulgarian partner, we have | |||
initiated construction of a 237 MW solar park - the largest | |||
single project to date. | |||
We expect this significant construction activity to | |||
continue in the years ahead as our robust pipeline | |||
continues to evolve and materialise. | |||
Reaching 1.1 GW of installed capacity | |||
The net-owned MW increased during the year, through | |||
organic growth and the remainder through other minor | |||
strategic acquisitions. The net-owned MW increased | |||
from 857 MW to 1,118 MW, breaking the 1 GW of installed | |||
capacity not only in total, but also for wind, which | |||
reached 1,047 MW. | |||
In 2022/23, we commissioned a record high 258 MW | |||
to the grid in seven countries – this record-breaking | |||
achievement is a huge step in the development of the | |||
Group. The increase is primarily driven by completion | |||
of our fully owned Danish project, Greenlab Skive, our | |||
Swedish project, Knöstad, and our Portuguese project, | |||
Triana. We now have operational parks in ten countries, | |||
which gives geographical diversity and new possibilities. | |||
We expect to have more countries included within the | |||
next couple of years. | |||
Corporate and project financing | |||
As we are ramping up the business and setting record | |||
high activity levels in our business, the Group continues to | |||
have a focus on securing financing on a corporate level | |||
as well as project financing. | |||
During the year, we changed one of our main corporate | |||
banks to Nykredit and, together with Jyske Bank, we | |||
signed a facility loan agreement for EUR 215 million, | |||
where also Spar Nord Bank participated in the facility. | |||
The loan is to further consolidate our capital position and | |||
to execute and materialise our projects and secure the | |||
continued growth of our business. | |||
The substantial activity within EPC necessitates an | |||
adequate level of project financing, both during the | |||
construction phase and for long-term project financing. | |||
During the year, we have seen increasing interest rates in | |||
all markets. This will impact and increase the investment | |||
cost of our projects in development, construction and in | |||
operation. | |||
Countries | Organic growth | Acquisitions | Divestment/ |
MW | MW | decommissioning | |
MW | |||
Germany | 40 | 8 | -2 |
Denmark | 78 | 1 | -4 |
Finland | 11 | ||
Italy | 5 | ||
Poland | 59 | ||
Portugal | 22 | ||
Sweden | 43 | ||
Total | 258 | 9 | -6 |
The banks’ interest in project financing is unchanged. | |||
The market needs renewable energy and banks see | |||
great potential, which ensures the possibility of financing | |||
as well as refinancing of our projects. | |||
The Project Finance department has, during the year, | |||
secured a total of 242 MW in four countries and expects | |||
to close several financings during the second half of | |||
2023 | |||
MW | |||
Germany | 25 | ||
Denmark | 98 | ||
Portugal | 73 | ||
Sweden | 46 | ||
Total MW | 242 | ||
Our project finance department has substantial | |||
expertise and experience in securing financing at optimal | |||
rates and timeframes. Further, the project finance | |||
department also has a focus on capital structure and | |||
is looking for new opportunities in the market. Given the | |||
existing market volatility, this knowledge and experience | |||
is key to the business. | |||
Markets | |||
We grid connected assets in four new countries this year, | |||
which gives us a strong footprint in Europe. In the next | |||
couple of years, we expect to increase the number of | |||
countries where we have operational parks, making our | |||
position even stronger. | |||
Since 2018, Eurowind have jointly owned a French | |||
development company named Ventelys. During 2022/23, | |||
we acquired the majority of the company to further | |||
consolidate the French market. We see great potential in | |||
the company and its employees. With the acquisition, we | |||
strongly believe that we can accelerate and materialise | |||
the development, and increase the development pipeline. | |||
Within the Power-to-X market, Eurowind made significant | |||
steps, further advancing our Energy Centre concept | |||
by formally expanding into the biogas sector through | |||
the acquisition of a portfolio of development projects in | |||
Denmark and a German biogas company. | |||
Organisation | |||
The fast pace and growth continued during this year and | |||
we continue to see growth for the coming years. This | |||
year, we have focused on the organisation as we have | |||
scaled up significantly over the last two years. | |||
Establishing a scalable organisational framework | |||
suitable for growth is focal. It will enable us to sustain | |||
our high growth and succeed with our goals and | |||
strategy. This entailed directing our efforts towards | |||
refining and implementing consistent and uniform | |||
processes, systems, and structures throughout the whole | |||
organisation to support our growth strategy. | |||
Our ongoing commitment to enhancing and adapting | |||
our organisation will improve the efficiency of cross- | |||
functional activities while ensuring greater transparency | |||
for both internal and external stakeholders. Maintaining | |||
our focus on strengthening our capabilities and | |||
competencies, tailoring our project management model | |||
to align with our current circumstances is a key factor. | |||
Our most important asset is the people at Eurowind, as | |||
we continue to grow, we need more passionate people. | |||
During the year, we have welcomed 196 new employees. | |||
The high number of new employees brings the Group | |||
total to 442 employees in 2022/23. We are proud to | |||
attract so many new people to the Eurowind family and | |||
we hope and expect to welcome more in the future. | |||
“ Establishing a scalable | |||
organisational framework | |||
suitable for growth is focal. | |||
Operational activities | |||
– strong earnings | |||
Ownership | |||
The sale of electricity generates reoccurring revenue and | |||
returns. Income from the sale of electricity is therefore an | |||
important part of the business model and contributes to | |||
a significant proportion of the revenue. |
Operation | ||
The proportionated EBITDA share (net ownership share) | ||
of wind and solar operations comprises EUR 216 million | ||
(EUR 138 million in 2021/22), which again is the highest | ||
profit ever recorded in Eurowind Energy’s history. | ||
Our proportionated share (net ownership share) of | ||
sale of electricity increased by 51% to EUR 257 million | ||
- compared to last year and this is the highest sale of | ||
electricity recorded within the Group. Contributing to | ||
the high power sale and high result is that Eurowind | ||
grid connected 258 MW during the year, mainly driven | ||
by projects in Denmark, Poland, Sweden and Portugal. | ||
Eurowind grid connected projects in seven countries | ||
within the same financial year and both the number | ||
of countries and MW grid connected are records for | ||
Eurowind. | ||
The main drivers behind the result of operating projects are | ||
• High power prices throughout the financial year | ||
• Record high capacity added during the year | ||
• Average wind index in our core market, Germany, was | ||
lower than normal | ||
Last year, the power prices reached an all time high level | ||
during the second half of 2021 and the first half of 2022. | ||
The high power prices continued to increase during Q3, | ||
peaking in August; from October and the remainder on | ||
the financial year, the power prices in our core market | ||
Denmark, Germany, as well as Poland, stabilised around | ||
EUR 90 per MWh in Denmark and Germany, and to | ||
around EUR 123 per MWh in Poland, in the first half of | ||
2023 | ||
The higher power prices was partly offset by lower than | ||
normal wind conditions in our core markets. The overall | ||
wind index for Denmark for the period was 95% and for | ||
Germany, 86%. Denmark was characterised by consistent | ||
winds both in the second half of 2022 and the first half | ||
of 2023. Germany was characterised by low winds in the | ||
second half of 2022 and in line with the average for the | ||
first half of 2023. | ||
A satisfactory overall return on the portfolio is also | ||
expected in the future. | ||
Like last year, no large divestments have been made | ||
during the year and Eurowind continues to build up the | ||
portfolio of our own developed assets in line with our | ||
strategy. | ||
As an independent power producer, Eurowind Energy, | ||
directly or indirectly, now owns 123 operational wind | ||
and solar parks in ten countries with a total capacity | ||
of 1,118 MW. The net increase of 261 MW is primarily | ||
due to organic growth. Eurowind has only made minor | ||
acquisitions and divestments of turbines during the year. | ||
Our total power production reached 2,067 GWh in | ||
2022/23, which is a significant increase compared to | ||
last year with a split between solar and wind of 54 GWh | ||
and 2,013 GWh respectively. The full-year production of | ||
our operational parks are expected to generate GWh | ||
2,676 compared to GWh 1,973 last year, increasing the | ||
expected production by 35%. | ||
We expect to see an increase in the share of solar in our | ||
portfolio, which will also tend to equal out the revenue | ||
stream during the year. Our own total portfolio's actual | ||
production and expected full-year production of 2,067 | ||
GWh and 2,676 GWh respectively corresponds to the | ||
consumption of close to 515,000 and 670,000 households. | ||
The banks’ interest in project financing is unchanged, | ||
which ensures the possibility for refinancing as well | ||
as financing of our projects. The current events in | ||
the market in 2022/23 in relation to increased energy | ||
prices and uncertainties due to the war in Ukraine have | ||
increased the inflation and also the interest levels. | ||
Approximately 50% of our operational parks have a fixed | ||
interest rate. The fixed interest rate is lower than last year | ||
due to not all construction facilities at year-end have | ||
been converted to long-term financing. | ||
The Group owns a net total of 1,047 MW wind turbines | ||
and 71 MW solar projects at the end of the financial year. | ||
We now have more than one GW wind in our portfolio | ||
where our core markets, Germany and Denmark, are still | ||
paving the way followed by Poland. Going forward, we will | ||
see more diversified additions to our operational portfolio, | ||
as we have increased and diversified our construction | ||
pipeline concerning both countries and technology. | ||
“ Our total production reached | ||
2,067 GWh in 2022/23, which is | ||
a significant increase compared | ||
to last year. | ||
Asset management | ||
Technical and commercial management | ||
The asset management team delivers a 360-degree | ||
view and analysis of each park. The team is structured, | ||
dedicated and delivers optimal services optimising the | ||
individual parks across Europe. | ||
The asset management team is continuously working | ||
on creating a strong and efficient system for handling | ||
the operating companies, for the purpose of optimising | ||
the operation and management of each turbine and | ||
solar park. Understanding our customers' expectations is | ||
highly prioritised and our work is centralised around this | ||
to ensure the best possible and most effective execution | ||
of the processes in the management of wind and solar | ||
assets. The asset management team monitors and | ||
analyses the performance of the parks with a view to | ||
improving the strategy for production and cost structure, | ||
including refinancing and repowering. The asset | ||
management team strives to identify risks and other | ||
factors early to reduce any impact on the assets and | ||
performance. | ||
Progress in 2022/23 | ||
The growth in technical and commercial management | ||
continues. The increase is mainly due to organic growth | ||
within in our portfolio driven by Poland, Denmark and | ||
Germany. Further, four new countries were added to the | ||
portfolio bringing the total up to eleven. | ||
Currently, the Group has 1,970 MW under management. | ||
Our portfolio under asset management will produce | ||
a total of 4,591 GWh, which corresponds to more than | ||
1,140,000 households being supplied with green energy. | ||
The asset management portfolio increased by 22% and | ||
our gross revenue increased by 38% to EUR 12 million. | ||
In line with our strategy to become a power major, we | ||
have a goal to significantly increase the MW under | ||
management in the coming years. Asset management | ||
will continue to expand both organically through strong | ||
construction activities and by adding new customers. | ||
The asset management team stands ready to take over | ||
operation and management of assets once construction | ||
has been completed. With Eurowind Energy’s presence | ||
in the full value chain, from development to operation, | ||
we have in-house competencies covering the full value | ||
chain. These in-house competencies can be applied to | ||
our assets under management, to achieve the optimal | ||
lifecycle for the assets, for the benefit of our customers. | ||
Asset Management Services | ||
Operational | Analysis and | Contract |
Monitoring | Reporting | Management |
• Surveillance of wind | • Analysis of performance | • Securing compliance |
turbines and solar | • Performance reporting | • Negotiation of contracts |
• Analysis of data | • Calculation of lost | • Bargain power towards |
• Initiating necessary | production | suppliers |
on-site works | • Matches between | • Pushing counterparties |
• Processing all technical | measured production | to maximum |
utility inquiries | and settled/sold | performance |
• Outage information to | electricity | |
traders, utilities and | ||
service providers | ||
• Switching operations | ||
Financial | Energy Trading | |
Management | (PPA) | |
• Bookkeeping | • Invoicing electricity | |
• Invoice management | sales | |
• VAT and duty | • Negotiation of PPAs, | |
management | GOO's and balancing | |
• Preparation of financial | agreements | |
statements | • Auxiliary services | |
• Budgets and forecasts | ||
Projects in development and construction | ||
During the year, the Group has continued to grow our | ||
project development pipeline activities by 35% to 34 GW. | ||
The pipeline includes projects starting from greenfield, | ||
acquisition of ready-to-build projects and partnering. The | ||
diversity of the pipeline is also strengthened as biogas, | ||
battery and other PtX projects have been added and | ||
we expect the pipeline to included more going forward. | ||
Further, we continue the development of our five energy | ||
centres in Denmark with a capacity of approximately 2.5 | ||
GW, which we announced last year and we are in line | ||
with the plan. All five projects will include wind turbines, | ||
solar, batteries, biogas, and PtX (hydrogen production). | ||
We are currently active in 16 countries globally and have | ||
established local offices in almost all countries. It is | ||
important to have a broad geographical presence and to | ||
have local presence for the projects to succeed and for | ||
securing new projects. This corresponds with our long- | ||
term approach of establishing a strong pipeline. This | ||
pipeline is essential for ensuring a significant increase | ||
in MW ownership and the advancement of projects. | ||
The continued expansion of this pipeline has been | ||
accomplished through a strong focus on developing | ||
our own projects, both through organic growth and | ||
acquisitions. This effort also includes the establishment | ||
of strategic partnerships in both Europe and the US. | ||
The dominant countries in the pipeline continue to be | ||
Denmark and Poland, but we see other countries such as | ||
Romania building a substantial pipeline and construction | ||
will start on some of these project in the coming financial | ||
year. Our distribution in technologies have become | ||
more diversified where wind and solar are still the | ||
dominant technologies, but other technologies have | ||
been added such as biogas, batteries and other PtX | ||
projects. Eurowind Energy is always seeking to optimise | ||
our projects by looking at e.g. access to grid connection | ||
points and where is it possible to combine both wind and | ||
solar to create a hybrid park or looking at the possibility | ||
of creating Power-to-X. This has been further accelerated | ||
by the acquisition of Generator Agro, which holds land | ||
and biogas projects. | ||
With a strong and more diversified pipeline and | ||
knowhow, we believe the Group has a strong foundation | ||
for the coming years, where we will see more changes | ||
in settlement systems and auction offerings to be | ||
implemented in several countries. | ||
Construction | ||
Our EPC department (Engineering, Procurement and | ||
Construction) had an even busier year compared | ||
to last year as the Group's, construction activity in | ||
2022/23 reached a record high of gross 763 MW in ten | ||
countries and grid connected a record high of gross | ||
305 MW during the year. As the pipeline has become | ||
more diversified so is the construction pipeline. The | ||
construction pipeline includes much more solar projects | ||
compared to previous years and going forward it will | ||
include different PtX projects. | ||
To handle the increase in construction activity and the | ||
expected high activity in the future, our EPC department | ||
has significantly increased the number of people. | ||
Wind | ||
At the end of 2022/23, Eurowind Energy had ten wind | ||
projects under construction across seven European | ||
countries. In total, the active construction activities | ||
constitute some gross 229 MW of new renewable | ||
capacity expected to be grid connected during 2023 | ||
or 2024. The main construction sites are driven by large | ||
projects in Denmark, Poland, Romania and Sweden. | ||
During 2022/23, Eurowind Energy completed the | ||
construction of 24 wind projects across six countries | ||
amounting to gross 283 MW. | ||
Solar | ||
During 2022/23, Eurowind Energy increased our solar | ||
construction projects significantly to gross 534 MW in | ||
six countries. The main construction sites are located in | ||
Bulgaria, the US and Romania. | ||
One solar project of 22 MW was completed during | ||
2022/23 in Portugal. | ||
Grid connections in 2022/23 | ||
During 2022/23, we grid connected gross 305 MW of | ||
which 258 MW will be added to our net-owned capacity | ||
spread over seven countries | ||
Project | MW | |
Germany | 40 | |
Denmark | 78 | |
Finland | 13 | |
Italy | 5 | |
Poland | 104 | |
Portugal | 22 | |
Sweden | 43 | |
Total | 305 | |
We foresee that the high construction activity will | ||
continue in the years to come due to our strong pipeline | ||
being further developed and brought to the ready-to- | ||
build stage. The main focus is still on wind projects as, in | ||
general, they have two to three times higher production | ||
capacity, per installed MW than solar, but we still expect | ||
to see more solar projects and PtX projects in the future. | ||
Over the past few years, various disruptive elements | ||
have come into play, including challenges in the shipping | ||
market and the ongoing conflict in Ukraine. These | ||
elements have exerted pressure on the inflation of raw | ||
materials and the lead time for e.g. wind turbines. This | ||
remains a variable that could influence the construction | ||
timeline on projects and potentially increase the total of | ||
the investment. | ||
The disruptions have had an impact on the energy price | ||
market, resulting in uncertainty and volatile movements. | ||
Despite this year being exceptional and record-breaking | ||
in many respects, we continue to maintain focus on | ||
the execution of our strategy, contributing to the green | ||
transition and deliver affordable green energy. |
Financial performance |
Income statement |
Revenue |
In 2022/23, revenue increased to EUR 232 million, |
corresponding to an increase of EUR 59 million, |
compared to last year. |
Sale of electricity increased by EUR 65 million and the |
total sales of electricity amounted to EUR 213 million in |
2022/23 (2021/22: EUR 148 million). The increase during |
the year was primarily impacted by high power prices, |
but also an increase in renewable energy capacity under |
our ownership. The high power prices were partly offset |
by the lighter winds and lower than average production |
in our core market, Germany. |
The revenue from our asset management segment |
increased to EUR 5.9 million in 2022/23 (2021/22: EUR |
4.7 million). The increase was a mix of an increase in |
our renewable capacity jointly owned or below 50%, the |
full year effect from parks commissioned last year and |
higher revenues in the parks. |
The revenue was obtained through our reoccurring |
activities; sale of electricity and asset management, |
which accounted for 94% of the total sales as no |
significant divestment of operating parks were made in |
2022/23. This is in line with our strategy to increase our |
reoccurring revenue. |
The portion of total profits attributed to the Group from |
the sale of electricity generated remains a substantial |
component, forming a robust foundation for the Group. |
This share may fluctuate, depending on how well |
the operating portfolio performs and the number of |
divestments executed throughout the year. |
Gross profit The gross profit amounted to EUR 188 million (2021/22 |
EUR 127 million) and a gross margin of 81%. Both gross |
profit and margin increased significantly compared to |
last year due to high power prices and increased owned |
capacity. The gross margin remains elevated because |
the sale of electricity yields has a high profit margin, and |
there were no significant divestments made during the |
fiscal year 2022/23. |
Profit before tax The realised profit before tax is EUR 315 million, which is |
more than 2.5 times higher than last year, which was a |
very profitable year. |
The main components are |
• High reoccurring revenue from operational parks |
• High profit from Norlys Energy Trading |
Our reoccurring revenue was high leading to an increased |
profit. Staff costs increased significantly due to increased |
activity and ramping up the business. Results from |
associated companies increased monumentally, primarily |
due to Norlys Energy Trading, which delivered a very |
high profit. Further, our jointly owned Polish wind parks |
have increased significantly this past year and have also |
produced a great result. The depreciation increased due |
to the significant increase in our operational capacity. |
Net financial expenses were EUR 13 million (2021/22: EUR |
7 million), an increase of EUR 6 million. This increase in net |
financial expenses is primarily driven by the high interest |
rates and our added operational capacity, which have |
increased during the year. |
Balance sheet |
WTG/PV projects |
During the year, we increased our WTG/PV projects by |
EUR 218 million to EUR 848 million and our assets under |
construction by EUR 21 million to EUR 261 million, which |
constitutes our strategy of being an independent power |
producer. The growth in our operational assets can be |
attributed mainly to the commencement of operations |
at our Danish wind park, Greenlab Skive, our Swedish |
wind park, Knöstad, and our Portuguese solar park, |
Triana. Additionally, our assets under construction have |
developed as anticipated, and we foresee the majority of |
these projects becoming operational in the coming year. |
Furthermore, we are engaged in multiple construction |
projects in which we hold a 50% stake, and these |
are expected to contribute value to the Group in the |
forthcoming years, especially in Poland and Bulgaria. |
Equity investments in associates |
Our investments in associated companies have |
experienced a substantial increase. This growth can |
mainly be attributed to our investment in Norlys Energy |
Trading, which achieved exceptionally strong financial |
performance during the period. |
Equity and capital position |
Equity, including minority interests and the hybrid capital, |
amounts to EUR 688 million (EUR 417 million in 2021/22). The |
increase is the result of a very strong profit within the Group. |
The equity ratio of the Group including the hybrid capital |
and minority interests, is 40% (37% in 2021/22). The |
solvency in the Group, incl. the subordinated loan, is 42%. |
Based on the ratios, the Group has a strong position for |
the future. |
Long-term liabilities |
The long-term liabilities amounted to EUR 840 million |
(2021/22: EUR 554 million) an increase of EUR 286 million |
compared to last year. |
The increase is mainly driven by the bank, mortgage debt |
and bond payable, which increased to EUR 777 million |
(2021/22: EUR 503 million). This is a result of increased |
activities both in our operational parks and construction |
activity under tangible fixed assets. We collaborate with |
various financial institutions to secure project financing, |
which varies based on the location of the construction |
site, the project's scale, and the involvement of co- |
investors. |
Cash flow |
The cash flows from operating assets comprise EUR |
134 million for the Group (EUR 85 million in 2021/22). The |
strong cash flow from operating assets was driven by our |
earnings during the year. |
Cash flow from investing activities amounts to EUR -282 |
million due to our high construction activity, as we have |
increased our operational and construction capacity. |
Cash flow from financing activities amounting to EUR |
212 million are affected by our growing activity during |
the year, which can be seen in the significant increase in |
long-term borrowing. |
The Group compiles monthly cash forecasts that |
span a minimum of 12 months ahead. These forecasts |
play a crucial role in several aspects for senior |
management, particularly when assessing the feasibility |
of commencing new "ready-to-build" projects and the |
acquisition of additional projects. |
Description of significant events occurring after end of reporting period
Significant events after the end of the financial year |
There have been no events of significant importance to the |
Group’s financial position after the end of the financial year. |
Description of expected development
Outlook |
“ The project development |
pipeline has increased |
significantly |
2022/23 – substantial |
growth in revenue and profit |
During last year, we adjusted our budget and made a |
new forecast due to the new reality of high power prices. |
Based the on the following assumptions, we forecasted a |
profit of between EUR 400-500 million for 2022/23 |
• Continuously high power prices |
• Finished projects at the end of June 2022 and Q3 2022 |
will generate profits within the coming year |
• Continuously high performance by our affiliate Norlys |
Energy Trading |
We grid connected several project at the start of 2022/23 |
as expected, which together with our existing parks, |
made a significant impact on our profit for the year. |
Further, our affiliate Norlys Energy Trading delivered a |
remarkable result due to the high volatility in the market. |
The Group realised a profit before tax of EUR 315 million, |
which is lower than expected primarily due to two factors |
• Power prices decreased at the end of 2022 which |
were earlier than forecasted and stabilised for the |
remainder of the financial year |
• Norlys Energy Trading delivered a very strong result |
for 2022, however results in 2023 ended slightly below |
forecast as market conditions stabilised |
Despite the profit before tax being lower than expected, |
it is an all-time high and a record for the Eurowind group |
both revenue and profit wise. Compared to the original |
budget, we significantly overperformed. The higher sale |
of electricity and profit came from all our operations |
in Europe due to the high power prices during the year. |
Further, our investment in Norlys Energy Trading delivered |
a significant result for the year. |
Projection and outlook for 2023/24 |
We expect that our profit before tax will be in the range |
of between EUR 60-100 million on a balanced set of |
assumptions. Main assumptions are |
• High power prices compared to post COVID-19, but in |
line with the stabilised power prices in the second half |
of 2022/23 |
• Finalised projects during 2023/24 will generate profits |
within the coming year |
• Continously high performance by our affiliate Norlys |
Energy Trading, but not to the extent we have seen |
during 2022/23 |
2022/23 was a special year. During the past 18 months |
we have seen |
• Significant increases in financial market volatility, |
impacting power prices and interest rates, which can |
impact power sales. |
• Regulatory responses to the extreme power prices |
in terms of windfall taxes, and the potential revision |
of the power market pricing regime impacting the |
financial performance. |
In 2023/24 we continue our high level of construction |
activities, expecting to add 295 MW of renewable assets |
to our fleet. |
The power prices we have seen in first part of 2023, we |
expect to continue. We have included average power |
prices, but these are still conservative compared to the |
current price levels as it is very difficult to predict and |
the market is still very volatile. As a further unpredictable |
factor, the price level might be influenced by legislation |
and taxation implied by authorities throughout the EU. |
Power sales |
The Eurowind Energy group also expects to boost our |
power sales in the coming years. |
Based on current and expected construction forecasts |
to increase our capacity, the Group expects to see power |
sales rise on all markets. |
PtX projects in combination with new or existing wind and |
solar parks, will bring new possibilities to our business |
and increase the power usage and efficiency. This will |
bring the Group further up the value chain. During the |
year, we further advanced our Energy Centre concept by |
officially entering the biogas market with the acquisition |
of a portfolio of development projects in Denmark and a |
German biogas company, Greenline. |
Norlys Energy Trading continues to increase and broaden |
its activities and the opportunities for Eurowind Energy |
will also develop, putting us in a position to increase |
the earnings on power production across Europe. Price |
management will become increasingly important in |
the future and we believe that by having competences |
inhouse together with Norlys Energy Trading will positively |
benefit the Group. |
Project development |
The pipeline consists of projects from early development |
stage, where we have identified land plots and have |
initiated negotiations to ready-to-build projects both |
internally developed and externally acquired. |
The project development pipeline significantly grew |
from 25 GW in 2021/22 to 34 GW this year. The growth |
is primarily driven by the Danish, Romanian, Spanish |
and American pipeline. The highest growth in the |
pipeline last year was Romania and they continued their |
growth together with several projects already being in |
construction and others soon to enter the construction |
phase. |
This build-up of future projects is the foundation of our |
continued growth and it will be realised in the coming |
years in the form of high construction activity and later, |
increased operational capacity. |
The expansion of the development pipeline is projected |
to continue in the upcoming years as our investment in |
our project development organisation materialises. This |
projection is reinforced by the observation of an ongoing |
shift towards larger projects and through entering new |
markets. The growth of the development pipeline will also |
be supported from the development of more hybrid and |
PtX projects. |
Date of general meeting: 08-11-2023