Research: Industrials
Cloudberry Clean Energy recorded a strong performance for FY23. Revenue nearly tripled compared to FY22 (NOK217m), reaching NOK610m. EBITDA also significantly increased to NOK263m (FY22: NOK151m). The company’s total portfolio capacity grew to 494MW (FY22: 316MW), with 267MW of producing assets. This expansion was reflected in Cloudberry’s increase in net assets, which rose to NOK6,691m (FY22: NOK4,603m). Despite the company’s substantial growth throughout FY23, it maintained a strong financial position, with net cash of NOK779m (FY22: NOK1,538m).
Cloudberry Clean Energy |
Transformative FY23 with revenue rocketing
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Industrials |
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16 April 2024 |
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Cloudberry Clean Energy recorded a strong performance for FY23. Revenue nearly tripled compared to FY22 (NOK217m), reaching NOK610m. EBITDA also significantly increased to NOK263m (FY22: NOK151m). The company’s total portfolio capacity grew to 494MW (FY22: 316MW), with 267MW of producing assets. This expansion was reflected in Cloudberry’s increase in net assets, which rose to NOK6,691m (FY22: NOK4,603m). Despite the company’s substantial growth throughout FY23, it maintained a strong financial position, with net cash of NOK779m (FY22: NOK1,538m).
Key events
In May 2023 Cloudberry completed the acquisition of 80% of Skovgaard’s Odin portfolio. This agreement has secured Cloudberry a majority stake in a portfolio of 51 operational wind turbines, as well as a long-term development agreement for future projects in Denmark. The Odin portfolio substantially contributed to Cloudberry’s operating cash flow of NOK224m (FY22: NOK43m) and further diversified its production profile, adding 311GWh of net production. In June 2023, Cloudberry sold three hydropower plants for record prices to a private infrastructure investor. This transaction demonstrated Cloudberry’s ability to create value for its shareholders throughout the full life cycle of its assets.
Growth ambitions: ‘3 in 30’
In FY23, Cloudberry launched an ambitious growth strategy called ‘3 in 30’. The strategy aims to achieve 3TWh of producing assets, 3TWh of permitted projects and 3g CO2 per KWh of emissions by 2030. However, Cloudberry stated that in the short term, its key priorities are profitable growth and capital discipline. The sale of its hydropower assets in June generated the opportunity to effectively recycle capital into potentially higher returning new renewables energy projects. This strategy has become more viable as the capital expenditure costs for deploying solar panels have reached an all-time low, enabling the company to participate in the strong growth expected from this increasingly competitive sector of the renewables space. Cloudberry has a pipeline of more than 2,500MW of nonexclusive projects and increased its credit facility by NOK200m to NOK2,200m. This facility aids growth at an interest rate margin of below 2%.
Valuation: Undervalued according to management
Cloudberry has begun to buy back its own shares as it believes the company is trading well below its historical asset values. Cloudberry’s consensus FY24 P/E ratio is 14.8x, which is relatively modest compared to its peers as they trade on an average of 20.6x.
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Consensus estimates
Source: LSEG |
EDISON QUICKVIEWS ARE NORMALLY ONE-OFF PUBLICATIONS WITH NO COMMITMENT TO WRITING ANY FOLLOW UP. QUICKVIEW NOTES USE CONSENSUS EARNINGS ESTIMATES.
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Research: Industrials
Arctic Paper’s FY23 results highlight the resilience of its business model in a year of cyclical weakness. Management successfully focused on margins, which were broadly protected through the implementation of cost containment measures and adjusting capacity to match demand. The FY23 EBITDA margin stood at 13%, substantially higher than the historical average of 10%. The cash flow and balance sheet remained strong with net cash of PLN348m, an increase from the FY22 level (PLN276m).