Near-term risks

The on-going international conflicts maintain geopolitical tensions and uncertainty about the development of the global economy. Inflation in some of the markets relevant to Enersense continues to be high and there is a risk that old contracts in particular cannot be renegotiated.

Increased uncertainty about economic development and the increase in operating and financial costs caused by high inflation have had a negative impact on investment environment and in the short term, the difficult predictability of the operating environment has begun to cause delays in investment decisions. This may lead to a deterioration in the financial position of customers and further to a decrease in demand for Enersense’s services and slower-than-expected sales development. Changes in the investment environment may have a negative impact on Enersense’s financial position, through factors such as the availability of financing, as well as value measurement of certain items in the balance sheet.

The tight competitive situation in many of Enersense’s business areas and the offerings of any new competitors may cause pressure in terms of project sales prices and profitability. Challenges in availability of skilled workforce may impact Enersense’s operation, if realised.

(Q1 2024 Business Review, 26 April 2024)