News Tag: Q2

The figures in this release are unaudited. The figures in brackets refer to the comparison period (the corresponding period of the previous year), unless otherwise stated. All figures and sums have been rounded off from the exact figures which may lead to minor discrepancies upon addition or subtraction.

APRIL–JUNE 2023

•  Revenue EUR 86.3 million (59.8), 44.3% year-on-year.

•  EBITDA EUR 3.0 million (-0.6), EBITDA margin 3.5% (-1.0).

•  Adjusted EBITDA EUR 3.1 million (-0.4), or 3.6% of revenue (-0.7).

•  Operating profit EUR 0.6 million (-2.8), profit margin 0.7% (-4.6).

•  Undiluted earnings per share EUR -0.11 (-0.25).

JANUARY–JUNE 2023

•  Revenue EUR 161.3 million (120.0), 34.4% year-on-year.

•  EBITDA EUR 3.1 million (4.8), EBITDA margin 1.9% (4.0).

•  Adjusted EBITDA EUR 3.5 million (5.0), or 2.2% of revenue (4.2).

•  Operating profit EUR -1.6 million (0.5), profit margin -1.0% (0.4).

•  Undiluted earnings per share EUR -0.34 (-0.31).

•  Onshore wind power project portfolio was approximately 8,100 MW at the end of the reporting period (at 12/2022: approximately 8,000 MW).

•  The order backlog at EUR 527 million (295) at the end of the first half of the year.

•  On 1 June 2023 Enersense announced that it has initiated an evaluation of options to further accelerate its growth ambitions within its Power segment, specifically the strategy to become a significant zero-emission energy producer.

•  On 19 June 2023 Enersense announced that it has signed a 35-million euro add-on turnkey contract with Elisa, a Finnish telecommunications and digital services company, for the construction of Elisa’s Fibre to the Home optic fibre network in Finland.

After the review period:

•  On 27 July 2023 Enersense announced that it changed the accounting of wind power projects from the beginning of 2023 and published comparison figures for 2022.

Guidance for the financial period 2023
(issued on 8 May 2023)

In 2023, Enersense’s revenue is expected to be over EUR 300 million and adjusted EBITDA in the range of EUR 12–18 million.

Despite the general economic uncertainty, the market situation in Enersense’s business areas has continued to be good in the beginning of the year and the favourable development is expected to continue. The company’s strong order backlog gives a good basis for increasing revenue. We have managed to accelerate the wind power portfolio development and we assume that the same development continues. Profitability will be impacted by the implementation of the new ERP-system as well as on-going investments in developing the offshore wind power business and acceleration of onshore wind power project development. At the end of 2022 the company completed an offering of EUR 26 million convertible bond in order to implement these investments.

Key figures

Accounting of wind power projects was changed from the beginning of 2023. Comparison figures for 2022 are reported according to the new accounting principle.

	4–6/2023	4–6/2022	1–6/2023	1–6/2022	1–12/2022
Revenue (EUR 1,000)	86,324	59,827	161,322	120,030	281,997
EBITDA (EUR 1,000)	3,046	-614	3,103	4,797	12,210
EBITDA, %	3.5	-1.0	1.9	4.0	4.3
Adjusted EBITDA (EUR 1,000)	3,122	-431	3,514	5,048	13,654
Adjusted EBITDA, %	3.6	-0.7	2.2	4.2	4.8
Operating profit (EUR 1,000)	645	-2,772	-1,648	455	3,479
Operating profit, %	0.7	-4.6	-1.0	0.4	1.2
Result for the period (EUR 1,000)	-1,886	-4,133	-5,663	-5,427	-9,835
Equity ratio, %	27.8	40.2	27.8	40.2	28.8
Gearing, %	66.6	32.7	66.6	32.7	19.0
Return on equity, %	-3.2	-6.3	-9.5	-9.9	-17.5
Earnings per share, undiluted, EUR	-0.11	-0.25	-0.34	-0.31	-0.57
Earnings per share, diluted, EUR	-0.11	-0.25	-0.34	-0.31	-0.57

President and CEO Jussi Holopainen

“Enersense’s strong growth continued in the second quarter. The Group’s revenue increased by 34.4% in January–June and was EUR 161.3 (120.0) million. The order backlog stood at EUR 527 (295) million. The Group’s adjusted EBITDA was EUR 3.5 (5.0) million. The profitability of core business operations improved in all business areas, but investments in strategic focus areas had a negative impact of EUR 3.2 million on the EBITDA. In the comparison period, the recognition of EUR 8.5 million arising from the Enersense Wind acquisition had a positive impact on the EBITDA. On the other hand, the operating environment in early 2022 was very exceptional because of the Russian attack on Ukraine and the strike in the ICT sector in particular, which burdened the result for the comparison period.

Our work to improve the profitability of our core business operations has begun to produce results.
In Smart Industry in particular, the growth of volumes in service and project business operations is reflected in improved profitability. In the International Operations and Connectivity business areas, the good volumes and profitability improvement measures produced results in the first half of the year. High activity in the construction of high-voltage power lines continues in the Baltic countries, and since the end of 2022, Connectivity has announced optical fibre connection construction contracts totalling around EUR 100 million, which will increase business volumes. The market situation in the Power business area continues to be good, and after the seasonally challenging first quarter, the profitability of core business operations improved in the second quarter. Enersense plays an important role in projects related to Finland’s main grid, and in the first half of the year, we won projects totalling around EUR 40 million.

During the past five years, Enersense has been the strongest grower on Nasdaq Helsinki by revenue growth (CAGR). In line with our specified strategy, we are actively investing in strengthening our position also in our strategic focus areas. At the beginning of June, we announced that we had started an assessment of the options to accelerate the achievement of the Power business area’s growth targets and especially our strategic target to become a significant producer of clean energy. Our own energy production target is 600–700 MW by 2027, which we have estimated will require investments of EUR 700–800 million. We are now looking for the best possible solution to boost the implementation of our growth strategy. At the end of the review period, our renewable energy project portfolio was around 8,100 MW (December 2022: 8,000 MW), which provides a good basis for our determined progress towards our own energy production target.

In charging solutions for zero-emission transport, we moved to industrial-scale production by starting cooperation with Scanfil during the review period. Enersense’s new high-power charger makes it possible to increase the charging power of an individual charging device from 30 kW to 160 kW. We believe that this cooperation will offer us good growth opportunities. During summer 2023, we will deliver high-power charging solutions to Norway, Finland and Sweden, and we are seeing plenty of opportunities in the Nordic charging site market.

In June, we announced that the City of Pori had started to build an international centre of excellence and operations for offshore wind power. Enersense is involved in the project, and our expertise in offshore wind power as well as our production facilities (50,000 m2) in Mäntyluoto in Pori are playing an important role in building the centre of excellence. The Bothnian Sea region is one of the most favourable areas for the construction of wind power plants, even in international comparison: a total of 15 major power plant projects within a radius of 400 kilometres from Pori have been announced in Finland and Sweden. The centre of excellence supports Enersense’s growth targets and enables Enersense to further strengthen its role as an EPCI supplier in offshore wind power projects. Investments in the ramp-up of Enersense Offshore, which we acquired in autumn 2021, are also beginning to materialise. At the beginning of July, Aker Solutions ordered steel structure modules from Enersense for the Hugin A production platform, which is part of the development of the Yggdrasil oil and gas field operated by Aker BP in the North Sea. We believe that a well-executed project will enable the expansion of our cooperation into the rapidly growing energy market, where Aker Solutions has strong experience..

Alongside strategic projects, we are continuing our work to streamline our core business portfolio. We are aiming to focus on our core competences and divest operations that are not integral to them. As part of this review, we sold all shares in Enersense Solutions to Econia, which is part of Administer Group. Enersense Solutions provides contractor liability services, and the transaction also included its E-Sense system. A capital gain of EUR 0.9 million from the transaction was recorded in the second quarter.”

This release is a summary of Enersense’s Half-year Financial Report. The complete report is attached to this release as a pdf-file. It is also available on the company’s website at www.enersense.com/press-releases/reports-and-presentations/.

ENERSENSE INTERNATIONAL PLC

Tommi Manninen
SVP, Communications and Public Affairs

More information: 

Jussi Holopainen, CEO 
Tel. +358 44 517 4543 
Email: jussi.holopainen@enersense.com

Mikko Jaskari, CFO
Tel.: +358 40 053 5337​
Email: mikko.jaskari@enersense.com​

Media contacts: 
Tommi Manninen, SVP, Communications and Public Affairs 
Tel. +358 40 043 7515 
Email: tommi.manninen@enersense.com

Distribution:
Nasdaq Helsinki
Major media
www.enersense.com

Market value of the share capital shown in the key figures per share table on page 19 on 30.6.2022 in the Half-year Financial Report published by Enersense on 4 August 2022 was incorrect.

The corrected table is below:

Key figures per share

	30.6.2022	30.6.2021	31.12.2021
Market value, EUR	123,829,513	139,336,382	91,640,466
Number of shareholders at the end of the period*)	6,870	6,281	6,957
Share price at the end of the period	7.60	10.40	6.84
Average share price, EUR	7.22	—	8.63
Highest share price, EUR	8.22	12.00	12.00
Lowest share price, EUR	5.22	6.60	5.96
Number of shares at the end of the period, undiluted	16,293,357	13,397,729	13,397,729
Number of shares at the end of the period, diluted	16,147,558	13,397,729	13,397,729
Average number of shares during the period, undiluted	15,612,554	10,874,110	12,130,679
Average number of shares during the period, diluted	15,515,355	10,874,110	12,130,679
Share trading, pcs	3,504,053	4,309,109	9,568,586
Turnover rate, %	21.5	32.2	78.8

*) Source: Euroclear Finland Oy

You can find the corrected half-year report from here: https://enersense.com/press-releases/reports-and-presentations/

The challenging business environment burdened the result for the first half of the year – The company is preparing for the green transition through significant investments

This release is a summary of Enersense’s 2022 Half-year Financial Report. The complete report is attached to this release as a pdf-file. It is also available on the company’s website at www.enersense.com/investors.

April–June 2022

•    Revenue EUR 59.8 million (61.6), -2,9% year-on-year

•    EBITDA EUR -0.6 million (5.8), EBITDA margin -1.0% (9.4)

•    Operating profit EUR -2.8 million (3.0), profit margin -4.6% (4.9)

•    Adjusted EBITDA EUR -0.4 million (4.8), or -0.7% of revenue (7.8)

January–June 2022

•    Revenue EUR 113.6 million (114.9), -1,1 % year-on-year

•    EBITDA EUR 4.8 million (7.5), EBITDA margin 4.2% (6.5)

•    Operating profit EUR 0.5 million (2.4), profit margin 0.4% (2.1)

•    The order backlog stood at EUR 295.4 million (301.0) in the first half of the year

•    Adjusted EBITDA EUR 5.0 million (7.4), or 4.4% of revenue (6.4)
 

Guidance for the 2022 financial period

On 27 July 2022, Enersense announced that it would lower its financial guidance for 2022 in terms of EBITDA. According to the company’s new financial guidance, its revenue is expected to be EUR 245–265 million in 2022, and its adjusted EBITDA is expected to be EUR 6–12 million.

During the second half of the year, the company’s profitability will be burdened by the Russian attack on Ukraine, accelerated inflation, problems with the availability of materials, the coronavirus pandemic and the strike in the ICT sector, as well as delayed project starts caused by these.
 

Key indicators

	4–6/2022	4–6/2021	1–6/2022	1–6/2021	1–12/2021
Revenue (EUR 1,000)	59,827	61,621	113,614	114,929	239,110
EBITDA (EUR 1,000)	-614	5,822	4,797	7,504	16,639
EBITDA, %	-1.0	9.4	4.2	6.5	7.0
Adjusted EBITDA (EUR 1,000)	-431	4,816	5,048	7,381	19,231
Adjusted EBITDA, %	-0.7	7.8	4.4	6.4	8.0
Operating profit (EUR 1,000)	-2,772	3,017	455	2,399	6,834
Operating profit, %	-4.6	4.9	0.4	2.1	2.9
Result for the period (EUR 1,000)	-4,133	1,922	-2,930	591	3,973
Equity ratio, %	40.2	34.4	40.2	34.4	35.6
Gearing, %	32.7	-15.6	32.7	-15.6	3.6
Return on equity, %	-6.3	5.0	-5.2	1.8	8.3
Earnings per share, undiluted, EUR	-0.28	0.16	-0.18	0.06	0.35
Earnings per share, diluted, EUR	-0.28	0.16	-0.19	0.06	0.35

President and CEO Jussi Holopainen

“The first half of 2022 was exceptional in many ways. The Russian attack on Ukraine and its impacts have delayed the start of projects in the spring, and the high inflation rate and problems with the availability of materials have caused challenges worldwide. At the same time the company has invested significantly for the green transition, which demand has grown rapidly.

Energy self-sufficiency is increasing considerably in Europe because of the Russian attack on Ukraine, and the process to end dependence on Russian oil, gas and coal production is progressing rapidly in many sectors. This provides us with a great deal of new opportunities to implement zero-emission energy solutions through our extensive range of services, which has further increased as a result of corporate transactions this year.

Because of the global situation, we anticipated in our business review for the first quarter that the second quarter will be the weakest quarter of the year in terms of profitability. The strike in the ICT sector in the spring also affected our business operations, especially in Connectivity. In addition, the Smart Industry business reflects the completion of the Olkiluoto nuclear power plant project and the resulting decrease in volumes. The Power segment’s performance in the first half of the year was better than expected despite the cost increases caused by inflation, and its improved result reflects its investments in renewable energy projects.

However, our performance was reasonable in the first half of the year despite the difficult circumstances. We achieved EUR 113.6 million (114.9) in revenue and EUR 5.0 million (7.4) in adjusted EBITDA. Our operating profit was EUR 0.5 million (2.4), and our profit margin was 0.4% (2.1). The adjusted EBITDA includes EUR 2.4 million in investments in offshore wind power and a new ERP system.

With a gloomier global economic outlook, we issued our new financial guidance after the review period on 27 July 2022. Our adjusted EBITDA is expected to be EUR 6–12 million in 2022 (previously EUR 15–20 million), and our revenue is expected to be EUR 245–265 million in accordance with our previous guidance. Our order backlog has remained at a good level, but the company’s performance will continue to be burdened by global challenges during the second half of the year. We were able to negotiate the cost pressure caused by increased inflation to the new contracts and partially to the order backlog contracts during the first half of the year. 

In May, Enersense organised its first ever Capital Markets Day event, during which we published our new long-term financial targets and described the company’s adjusted business model. Our new financial targets describe the company’s business model more accurately after the corporate transactions implemented earlier and our expansion in the value chain (Enersense Offshore Ltd, which specialises in offshore wind power; Megatuuli Oy, which develops onshore wind power project; and our investment in P2X Solutions, Finland’s first green hydrogen production company).

Our expansion in the value chain – from project design, implementation and maintenance to being a key producer, owner and project developer of zero-emission energy – makes our business operations more stable and profitable and reduces project risks. From here, we are seeking to achieve EUR 500 million in revenue and EUR 100 million in profitability by 2027.

In June, we signed a significant agreement on the acquisition of Voimatel Oy, a company specialising in critical infrastructure and energy services, from KPY Cooperative through an exchange of shares. KPY made an additional investment of EUR 2.2 million in Enersense in connection with signing the agreement. The execution of the share transaction is conditional on approval from the Finnish Competition and Consumer Authority.

The acquisition of Voimatel will make Enersense a more capable provider of information and energy network solutions and a partner in critical infrastructure and security of supply.

The acquisition will also substantially strengthen our offering of energy services such as solar energy and charging services for electric transport. Enersense sees good growth potential in solar power, and solar power projects support our role in implementing zero-emission energy projects. In the spring, we announced that we would explore opportunities to build a 20 MW solar power plant of our own in Mäntyluoto in Pori, on the same site where Enersense Offshore Ltd operates.

If the Voimatel transaction is implemented, Enersense’s revenue will increase to around EUR 370 million with the number of employees increasing to around 3,000. Highly competent and motivated employees will continue to be a key factor in enabling Enersense’s growth and development. We believe that we will continue to be able to provide our employees with interesting career paths and ensure that our understanding and expertise remain at a high international level.”
 

Pori 4 August 2022

Enersense International Plc

Board of Directors
 

This half-year financial report is an interim report in accordance with the IAS 34 standard. The financial information in the half-year financial report is unaudited.
 

Financial reporting in 2022

Enersense will publish the following reports in 2022:

• Business review for January–September on 28 October 2022

April–June 2021  

• Turnover EUR 61.6 million (16.4), +275.2% year-on-year  
• EBITDA EUR 5.8 million (1.1), EBITDA margin 9.4% (6.4) 
• Operating profit EUR 3.0 million (0.7), profit margin 4.9% (4.4) 
• Order backlog EUR 301 million at the end of the second quarter of 2021 (319 million at the end the first quarter of 2021)  
• Adjusted EBITDA EUR 4.8 million (1.1), or 7.8% (6.4) of turnover
• Adjusted operating profit EUR 2.8 million (0.7), or 4.5% (4.4) of turnover
• The figures concerning the business operations that were transferred to Enersense through the Empower acquisition are included in the Group’s figures from August 2020. 

January–June 2021 
 

• Turnover EUR 114.9 million (31.2), +267.7% year-on-year  
• EBITDA EUR 7.5 million (1.4), EBITDA margin 6.5% (4.5) 
• Operating profit EUR 2.4 million (0.8), profit margin 2.1% (2.5)  
• Order backlog EUR 301 million at the end of the second quarter of 2021 (292 million at the end of 2020) 
• Adjusted EBITDA EUR 7.4 million (1.4), or 6.4% (4.5) of turnover 
• Adjusted operating profit EUR 3.5 million (0.8), or 3.1% (2.5) of turnover   
• Earnings per share EUR 0.06 (0.06)  
• Total number of shares 13,397,729 (30 June 2021) 
• Guidance for the 2021 financial period remains unchanged 
• The figures concerning the business operations that were transferred to Enersense through the Empower acquisition are included in the Group’s figures from August 2020. 

Key indicators 

	4-6/2021	4-6/2020	1-6/2021	1-6/2020	1-12/2020
Turnover (EUR 1,000)	61,621	16,409	114,929	31,238	147,460
EBITDA (EUR 1,000)	5,822	1,055	7,504	1,405	9,775
EBITDA, %	9.4	6.4	6.5	4.5	6.5
Adjusted EBITDA (EUR 1,000)*	4,816	1,055	7,381	1,405	11,510
Adjusted EBITDA, %*	7.8	6.4	6.4	4.5	7.8
Operating profit (EUR 1,000)	3,017	717	2,399	780	4,780
Operating profit, %	4.9	4.4	2.1	2.5	3.2
Adjusted operating profit (EUR 1,000)*	2,754	717	3,538	780	7,474
Adjusted operating profit, %*	4.5	4.4	3.1	2.5	5.1
Result for the period (EUR 1,000)	1,922	338	591	302	2,379
Equity ratio, %	34.4	26.1	34.4	26.1	15.7
Gearing, %	-15.6	55.6	-15.6	55.6	52.3
Return on equity, %	5.0	4.7	1.8	4.2	19.3
Earnings per share EUR	0.16	0.06	0.06	0.06	0.27

 * Reconciliation of adjusted key indicators: Note 11  

1) Items outside the ordinary course of business according to the management’s judgement that are related to mergers and acquisitions and/or

restructuring, as well as significant redundancy costs

2) Amortisation of customer relationships and order backlog

3) Gains on the sale of fixed assets

Managing director Jussi Holopainen: 

“Our company’s profitability developed in the right direction during the first half of 2021, and the market outlook remains very positive. Our turnover increased to EUR 114.9 million (+267.7%), and our adjusted EBITDA to EUR 7.4 million (1.4), or 6.4% (4.5) of turnover. Our adjusted operating profit was EUR 3.5 million (0.8), or 3.1% (2.5) of turnover. (The figures concerning the business operations that were transferred to Enersense through the Empower acquisition are included in the Group’s figures from August 2020.) 

Our order backlog stood at EUR 301 million at the end of June. Our segments’ order backlogs have developed in line with expectations, and the order backlog has remained at a good level during the first six months of the year.

The performance of the Smart Industry segment and the Power segment developed favourably during the review period. The project profitability of the Smart Industry segment was better than expected, which was reflected in its result. Demand in the Power segment continued to be strong, and the order backlog increased as expected. The Connectivity segment’s result decreased due to challenging weather conditions in fixed networks during the winter and spring, and in mobile networks during the winter, as well as the smaller size of fixed network projects. Challenging weather conditions also had a negative impact on the EBITDA of the International Operations segment in the review period. Winter is often challenging for us because of the weather conditions, and we expect our performance to develop favourably in the second half of the year.

We are optimising our business operations. In May, we signed an agreement on the sale of the entire share capital of Värväämö Oy, our subsidiary offering personnel services for the construction industry. Our company continues to have expertise in personnel services, as well as capacity for project resourcing and internal scaling. The resourcing unit operates as part of our Smart Industry segment.

In May, we announced that we had completed negotiations on refinancing our operations. We are pleased to have new partners to support the development and growth of our operations.

In May, we transferred from applying the Finnish Accounting Standards (FAS) to international IFRS reporting. In June, we were listed on the Nasdaq Helsinki. We successfully executed a directed share issue of 1,775,000 new shares, raising around EUR 16 million. I am very pleased with the outcome of the share issue, which supports our vision of being a creator of zero-emission energy solutions. The share issue in June was a good continuation of the directed share issue executed in March, through which we raised EUR 15 million and gained Nidoco AB as a significant shareholder.

It is our estimate that we have already achieved a large portion of the cost savings we were expecting to achieve after the integration of Enersense and Empower last summer. Our forecast was EUR 4–7 million. We have continued our work to promote a common corporate culture and implement our new strategy. The integration projects will continue in the current and next financial year.

I am pleased with the development of the merger between Enersense and Empower. At the time of the merger around a year ago, Empower was in a very challenging situation, and we have succeeded in turning the whole into a profitable Enersense Group. 

The company is ready to take the next step. We are focusing on profitable growth and strategic investments centred on our core operations. Business arrangements are strongly in our focus.”

Pori 13 August 2021
Enersense International Plc
Board of Directors