News Tag: Interim

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 amounts have been rounded off from exact figures, which may result in minor inaccuracies in additions or subtractions.

January–March 2024

• Revenue was EUR 98.1 (75.0) million, 30.9% year-on-year.
• EBITDA was EUR 4.5 (0.1) million. The EBITDA margin was 4.6 (0.1)%.
• The operating profit was EUR 1.7 (-2.3) million. The profit margin 1.8 (-3.1)%.
• Undiluted earnings per share were EUR -0.34 (-0.23).
• The order backlog stood at EUR 445 (526) million at the end of the review period.
• On 9 January 2024, Enersense announced that it is merging the Power and International Operations business areas into a single business area. At the same time, the Smart Industry business area was renamed Industry. From the beginning of 2024, Enersense will report three business areas: Power, Industry, and Connectivity. In accordance with the planned organizational changes Margus Veensalu, a member of the Group Executive Team, will step down from the Group Executive Team but will continue at Enersense in another role.
• On 29 February 2024, the Board of Directors of Enersense decided on the group key employee incentive plan.
• Financiers approved a lower limit for the equity ratio covenant at the time of review at the end of the first quarter. Enersense is negotiating with financiers to further specify the covenant level for the full year 2024.

After the review period:

• On 9 April 2024, Enersense announced that Mikko Jaskari, the company’s CFO and a member of the Group Executive Team, will step down from his position. Jyrki Paappa has been appointed new CFO and member of the Group Executive Team from 22 July 2024.

Guidance for the financial period 2024
(issued on 29 February 2024)

• In 2024, Enersense’s revenue is expected to be in the range of EUR 365–435 million and EBITDA in the range of EUR 15–25 million.
• The revenue is expected to grow in 2024. Outlook especially for the company’s growth areas is favourable. The EBITDA is expected to grow. Profitability is expected to improve even if the investments in growth continue.

Key figures

	1–3/2024	1–3/2023	1–12/2023
Revenue, (EUR 1,000)	98,143	74,998	363,318
EBITDA, (EUR 1,000)	4,489	58	14,704
EBITDA, %	4.6	0.1	4.0
Operating profit, (EUR 1,000)	1,734	-2,293	5,260
Operating profit, %	1.8	-3.1	1.4
Result for the period, (EUR 1,000)	-5,520	-3,778	-9,149
Equity ratio, %	22.8	30.6	26.0
Gearing, %	84.1	57.7	70.2
Return on equity, %	-10.5	-6.0	-16.0
Earnings per share, undiluted, EUR	-0.34	-0.23	-0.54
Earnings per share, diluted, EUR	-0.34	-0.23	-0.54

President and CEO Jussi Holopainen

“The beginning of 2024, too, has been marked by uncertainties related to the operating environment. However, Enersense’s growth continued in the first quarter, supported by its strong order backlog. Our revenue increased by 31% year-on-year, increasing to EUR 98 (75) million. The Group’s EBITDA, supported by a recognition of around EUR 7 million in revenue from wind power projects, was EUR  4.5 (0.1) million. In the core business operations, considering that profitability is typically low in the first quarter because of seasonality, our performance was partly even better than expected. Offshore business’s weaker than expected Q1 burdened, however, the profitability for the entire Group. In total, investments in our strategic focus areas burdened the EBITDA by EUR  -5.6 (-2,3) million in the review period. The Group’s order backlog was EUR 445 (526) million at the end of March, almost at the same good level as at the end of 2023 (457).

Revenue increased significantly in the Power and Industry business areas. The Power business area’s revenue includes sales from wind power projects, and revenue from core business operations also increased. This is the first time we are reporting the Power and International Operations business areas together. Very similar projects have been carried out in these business areas for customers in the electricity network and energy sectors, for example. We believe that by combining international projects under one Power business area, we will increase both our competitiveness and our efficiency. In the Industry business area, revenue from core business operations grew markedly, but the most significant portion of the growth came from offshore business operations. Revenue in the Connectivity business area decreased in the first quarter, which is seasonally slower than the rest of the year.

In the first quarter, EBITDA grew considerably year-on-year. Profitability in the core businesses was good, but the loss in the first quarter in the offshore business turned the Industry business area’s EBITDA nearly EUR 3 million in the negative which weakened the profitability of the entire Group. The profitability development of the offshore business is being monitored closely by the management. Difficulties in resource management due to overlapping projects that have increased the realised costs have been identified as the reason for the poor profitability. Necessary organisational replacements have been carried out in the business, and the  measures have been initiated to reverse the profitability trend. The goal is for the EBITDA of the offshore business to become positive by the end of the year.

As a result of the poor performance of the offshore business, with the balance sheet treatment of wind power revenue, the equity ratio was lower than expected at the end of the review period. I am pleased that we reached an agreement with our financiers on lowering the equity ratio covenant limit at the time of review at the end of March. Despite increased uncertainty in the market environment, we believe that the profitability development for the rest of the year will be better, and we reiterate our guidance for 2024 from February.

Enersense’s strategy work started in 2020 and is entering the next phase. Enersense’s Board of Directors, elected in April, has established a Strategy Committee from among its members, and a review of Enersense’s long-term strategy has been started under the leadership of the committee. The strategy work and the related action plans are expected to be completed during 2024. To strengthen and accelerate the implementation of the company’s new development phase, Jyrki Paappa has been appointed as Enersense’s CFO as of 22 July 2024. He is a highly experienced professional who will contribute to our growth journey and the achievement of our strategic targets.”

This release is a summary of Enersense’s Business Review January-March 2024. 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/.

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

Risto Takkala, acting CFO
Tel.: +358 45 127 4414
Email: risto.takkala@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

The figures in this bulletin are unaudited. The figures in brackets refer to 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.

October–December 2023

• •Revenue was EUR 107.8 (97.6) million, +10.5% year-on-year.
• •EBITDA was EUR 7.7 (3.4) million. The EBITDA margin was 7.1 (3.5)%.
• There were no items affecting comparability in the fourth quarter
  Adjusted EBITDA for the comparison period was EUR 4.3 million or 4.5% of revenue.
• The operating profit was EUR 5.3 (1.1) million. The profit margin was 4.9 (1.1)%.
• Undiluted earnings per share were EUR -0.15 (-0.34).

January–December 2023

• Revenue was EUR 363.3 (282.0) million, +28.8% year-on-year.
• EBITDA was EUR 14.7 (12.2) million. The EBITDA margin was 4.0 (4.3)%.
• Adjusted EBITDA was EUR 15.1 (13.7) million, or 4.2 (4.8)% of revenue.
• The operating profit was EUR 5.3 (3.5) million. The profit margin was 1.4 (1.2)%.
• Undiluted earnings per share were EUR -0.54 (-0.57).
• Renewable energy project portfolio was approximately 8,800 MW at the end of the year 2023 (6/2023: 8,100 MW) of which onshore wind power projects approximately 8,400 MW (6/2023: 8,100 MW).
• •The order backlog stood at EUR 457 (415) million.

After the review period:

• On 9 January 2024, Enersense announced that it is merging the Power and International Operations business areas into a single business area. At the same time, the Smart Industry business area will be renamed Industry. From the beginning of 2024, Enersense will report three business areas instead of the current four: Power, Industry, and Connectivity. In accordance with the planned organizational changes Margus Veensalu, a member of the Group Executive Team, will step down from the Group Executive Team but will continue at Enersense in another role.
• On 2 February 2024, Enersense announced that the Shareholders’ Nomination Board proposes that the current Board members will be re-elected as board members, and Ville Vuori and Anders Dahlblom will be elected as new board members.

Distribution of funds to the shareholders

The Board of Directors proposes to the General Meeting that the result for the financial period 1 January 2023 to 31 December 2023 be transferred to the profit and loss account for previous financial periods and that, based on the balance sheet to be adopted for the financial period, no dividends be paid to shareholders.

In addition, the Board of Directors proposes to the General Meeting that the Board of Directors be authorized to decide on the distribution of funds to shareholders from the invested unrestricted equity reserve as a return of capital of at most EUR 0.10 per share, i.e. at most EUR 1.6 million in total. The return of capital could be paid in up to two instalments during the period between July and December 2024 as determined by the Board of Directors. The possible return of capital would be paid to shareholders who, on the record dates determined subsequently by the Board of Directors, are registered in the shareholders’ register of the Company maintained by Euroclear Finland Ltd. The authorization is valid until 31 December 2024 at the latest.

Guidance for the 2024 financial year

In 2024, Enersense’s revenue is expected to be in the range of EUR 365–435 million and EBITDA in the range of EUR 15–25 million.

The revenue is expected to grow in 2024. Outlook especially for the company’s growth areas is favourable. The EBITDA is expected to grow. Profitability is expected to improve even if the investments in growth continue.

Board of Directors’ Report and Financial Statements

The 2024 Annual General Meeting of Enersense International Plc is scheduled to take place on Thursday 4 April 2024. The company’s Board of Directors will convene the Annual General Meeting separately.

Enersense’s Financial Statements and Board of Directors’ Report (ESEF), Corporate Governance Statement and Remuneration Report for 2023 will be published during the week beginning 4 March 2024. All reports will be available on the company’s website.

Key figures

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.

	10–12/2023	10–12/2022	Change-%	1–12/2023	1–12/2022	Change-%
Revenue (EUR 1,000)	107,827	97,578	10.5	363,318	281,997	28.8
EBITDA (EUR 1,000)	7,655	3,367	127.4	14,704	12,210	20.4
EBITDA, %	7.1	3.5		4.0	4.3
Adjusted EBITDA (EUR 1,000)	7,655	4,350	76.0	15,115	13,654	10.7
Adjusted EBITDA, %	7.1	4.5		4.2	4.8
Operating profit (EUR 1,000)	5,311	1,095	n.a	5,260	3,479	51.2
Operating profit, %	4.9	1.1		1.4	1.2
Result for the period (EUR 1,000)	-2,356	-5,577		-9,149	-9,835
Equity ratio, %	26.0	28.8		26.0	28.8
Gearing, %	70.2	19.0		70.2	19.0
Return on equity, %	-4.1	-9.9		-16.0	-17.5
Earnings per share, undiluted, EUR	-0.15	-0.34		-0.54	-0.57
Earnings per share, diluted, EUR	-0.15	-0.34		-0.54	-0.57

President and CEO Jussi Holopainen

“Our strong growth continued in 2023, and we improved the profitability of our core business operations. Our revenue increased by 28.8% from 2022 and was EUR 363.3 (282.0) million. The revenue includes EUR 7.6 million (14.0) in sales revenue from wind power projects. The Group’s adjusted EBITDA was EUR 15.1 (13.7) million. The profitability of the core business operations improved in all business areas. However, investments in strategic focus areas continued to be significant, and had an impact of EUR -11.8 (-6.1) million on EBITDA. At the end of the year, the Group’s order backlog was at a good level, at EUR 457 (415) million. The Group’s cash flow turned positive in the last quarter of the year.

Implementing the energy transition through profitable and growing business operations is at the core of our strategy. In 2023, all our business areas increased their revenue significantly, supported by a strong order backlog. In the Baltic countries, the construction of high-voltage power lines continued at a good level. In Connectivity, there was strong activity in fixed optical fibre construction projects. In late 2022 and early 2023, we announced contracts totalling around EUR 100 million for the construction of optical fibre connections. In the Power business area, the market situation was good, particularly in services related to the construction of transmission networks. Enersense plays a significant role in implementing projects related to Finland’s main grid. In Smart Industry, revenue increased as a result of higher volumes in service and project business operations.

We are particularly pleased with the significant increase in EBITDA in the Smart Industry, Connectivity and International Operations business areas. In the Power business area, EBITDA decreased year-on-year. Investments in strategic focus areas continued to be reflected in the profitability of the Smart Industry and Power business areas, and especially the ramp-up of the offshore-business has been slower than anticipated. However, both business areas have been able to improve the profitability of their core business operations, supported by strong volumes in particular. In the International Operations and Connectivity business areas, higher volumes and profitability improvement measures have already yielded results. Our significant investment in the company’s ERP system progressed to the next phase towards the end of the year, when the system was successfully implemented in the Smart Industry business area. The successful first phase lays a good foundation for the implementation of the system in other business areas.

To achieve our strategic growth targets, we are working to strengthen our position in our selected focus areas. We received our first significant orders for offshore projects during 2023. These projects increased business volumes, but the investments in the ramp-up of operations continued to burden profitability. We continued to develop our wind and solar power project portfolio. At the end of 2023, our onshore wind power project portfolio stood at around 8,400 MW (June 2023: 8,100 MW), and our solar power project portfolio totalled around 400 MW (June 2023: 60 MW). Our renewable energy project development portfolio of around 8,800 MW provides a good basis for the development of our own energy production. The assessment of the options related to our own energy production continues in line with the process announced in June 2023.

In charging solutions for zero-emission transport, we further specified our role as a developer and supplier of high-power charging technology. The market introduction of our advanced ECDC high-power charging equipment is progressing, and interest in the equipment has been at a good level, especially in the professional and commercial charging operator segments that are of interest to us. In November, as the first operator in Finland, we announced cooperation with electric transport payment and management platform developer Monta and started preparing integrations with several electric transport back-end system suppliers.

Towards the end of the year, we made a significant decision in the field of climate work by making a commitment to the near-term emissions reduction target of the Science Based Targets initiative. Through the commitment, we will determine science-based emissions reduction targets by the end of 2025 that support the Paris Agreement’s guideline to limit global warming to 1.5 degrees. We also wanted to engage our supply chain in the discussion on the transition towards low-emission solutions in the steel industry. In late 2023, we joined WWF Finland’s Ready for Green Steel campaign, which encourages steel industry companies to accelerate this positive change.

We have set ourselves ambitious financial targets for 2027. The strong growth in 2023 shows that we are on the right track in terms of our growth targets. Alongside growth, we will increasingly shift our focus to improving profitability. For example, we believe that the new ERP system will increase the efficiency of our operations. The work to streamline our business portfolio will also continue. At the beginning of 2024, we started preparatory work to merge the organisations of the Power and International Operations business areas. Very similar projects are being carried out in these two business areas in many respects, and we believe that by combining these operations we will improve both our competitiveness and our efficiency.

The outlook for 2024 is favourable and we expect both the revenue and EBITDA to grow. In 2024, we expect the revenue to be in the range of EUR 365–435 million and EBITDA in the range of EUR 15–25 million.”

This release is a summary of Enersense’s Financial Statement Bulletin 2023. The complete report is attached to this release as a pdf-file. It is also available on the company’s website.
 

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

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 amounts have been rounded off from exact figures, which may result in minor inaccuracies in additions or subtractions.

JULY–SEPTEMBER 2023

• Revenue EUR 94.2 (64.4) million, 46.2% year-on-year.
• EBITDA EUR 3.9 (4.0) million, EBITDA margin 4.2 (6.3)%.
• There were no items affecting comparability in the third quarter. Adjusted EBITDA for the comparison period was EUR 4.3 million, or 6.6% of revenue.
• Operating profit EUR 1.6 (1.9) million, profit margin 1.7 (3.0)%.
• Undiluted earnings per share EUR -0.05 (0.08).

JANUARY–SEPTEMBER 2023

• Revenue EUR 255.5 (184.4) million, 38.5% year-on-year.
• EBITDA EUR 7.0 (8.8) million, EBITDA margin 2.8 (4.8)%.
• Adjusted EBITDA EUR 7.5 (9.3) million, or 2.9 (5.0)% of revenue.
• Operating profit EUR -0.1 (2.4) million, profit margin 0.0 (1.3)%.
• Undiluted earnings per share EUR -0.39 (-0.23).
• The order backlog stood at EUR 511 (385) million at the end of September.
• On 22 August 2023 Enersense announced that it had signed with Telia Finland a one-year extension agreement on the provision of telecommunications network field services. The value of the agreement is EUR 25 million.

Updated guidance for the 2023 financial period

In 2023, Enersense’s revenue is expected to be over EUR 330 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.

Earlier guidance, 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.

 

	7–9/2023	7–9/2022	1–9/2023	1–9/2022	1–12/2022
Revenue (EUR 1,000)	94,168	64,390	255,491	184,419	281,997
EBITDA (EUR 1,000)	3,945	4,047	7,049	8,844	12,210
EBITDA, %	4.2	6.3	2.8	4.8	4.3
Adjusted EBITDA (EUR 1,000)	3,945	4,255	7,459	9,303	13,654
Adjusted EBITDA, %	4.2	6.6	2.9	5.0	4.8
Operating profit (EUR 1,000)	1,597	1,929	-51	2,385	3,479
Operating profit, %	1.7	3.0	0.0	1.3	1.2
Result for the period (EUR 1,000)	-1,129	1,169	-6,793	-4,258	-9,835
Equity ratio, %	26.8	39.0	26.8	39.0	28.8
Gearing, %	72.7	19.6	72.7	19.6	19.0
Return on equity, %	-1.9	2.9	-11.5	-10.4	-17.5
Earnings per share, undiluted, EUR	-0.05	0.08	-0.39	-0.23	-0.57
Earnings per share, diluted, EUR	-0.05	0.08	-0.39	-0.23	-0.57

President and CEO Jussi Holopainen

“Enersense’s revenue has grown strongly in 2023. This trend continued in the third quarter, and the Group’s revenue in January–September 2023 grew to EUR 255.5 (184.4) million, with an increase of 38.5% year-on-year. The order backlog remained strong and stood at EUR 511 (385) million at the end of the review period. The Group’s adjusted EBITDA was7.5 (9.3) million. In the review period, growth investments had an impact of EUR -6.3 (-3.4) million on EBITDA. EBITDA for the review period includes, in addition to adjustment items, also EUR 0.9 (4.2) million stemming from items outside the ordinary course of business. EBITDA in the comparison period increased as a result of significant sales revenue from wind power projects, too.

In the third quarter, we focused on our core activities, in which our work to improve profitability is already producing results. Our strong order backlog is keeping business volumes at a good level, which is reflected in the positive profitability trend in our core business operations, although growth investments continue to burden overall profitability.

This is particularly prominent in our Smart Industry business, where the profitability of service and project business operations has developed strongly, but investments in offshore business operations are burdening the overall profitability of the business area. After a difficult 2022, the profitability of the International Operations business area has turned clearly positive in 2023, and this trend continued in the third quarter. In the Connectivity business area, the profitability improvement programme and high volumes supported by a strong order backlog had a positive impact on profitability in the third quarter. In August, we announced that we had signed an extension agreement of EUR 25 million with Telia Finland on the provision of field services for Telia Finland’s telecommunications network. The extension agreement covers nearly all Connectivity’s services and is one of the most comprehensive agreements in Connectivity. We are very pleased that our long-term cooperation with Telia Finland continues.

In the Power business area, revenue increased markedly year-on-year, and EBITDA remained at the same level as in the third quarter of 2022. Of the core businesses, the construction of transmission networks, in particular, continued steadily. In October, we announced an extension agreement on basic maintenance services for Fingrid’s substations and power lines for 2024–2026. The extension agreement is a clear indication that the customer values our expertise and the benefits of long-term cooperation. The agreement further strengthens our position as a provider of maintenance and operation services for electricity networks in Finland. Our wind power projects progress as planned, too. In September, we sold our minority stake in the Soidinmäki wind farm. We continue to be responsible for O&M services during the operation of the wind farm under a multiyear agreement that covers the monitoring and maintenance of the substation and the electricity network. The transaction did not have a significant impact on the Power business area’s EBITDA in the third quarter of 2023. Zero-emission transport is one of the focus areas of the Group’s growth strategy. In the spring, we moved to industrial-scale production in our high-power charging stations by starting cooperation with Scanfil and we already have contracts to deliver equipment not only to Finland but also to Norway and Sweden. We see many opportunities for us in the Nordic charging market. Ramping up the electric vehicle charging solutions business continues.

Overall, our performance in the third quarter of 2023 met our expectations. Year-on-year, we are slightly behind our EBITDA in 2022, mainly because of significant revenues from wind power projects and the positive impact of corporate arrangements in the comparison period, as well as expenses related to the introduction of the new ERP system in 2023, which are somewhat higher than in 2022. Based on the strong growth during the early part of the year as well as on the order backlog that is on a good level, we have today updated our outlook for 2023 as regards to the revenue development. We expect the full-year revenue to grow over EUR 330 million. Guidance for the EBITDA remains unchanged.”

This release is a summary of Enersense’s January-September 2023 Business Review. 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

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

The figures in brackets refer to the comparison period (the corresponding period of the previous year), unless otherwise stated. All figures and amounts have been rounded off from exact figures, which may result in minor inaccuracies in additions or subtractions.

JANUARY–MARCH 2023

• Revenue was EUR 75.0 (53.8) million, 39.4% year-on-year.
• EBITDA was EUR 0.1 (5.4) million. The EBITDA margin was 0.1 (10.1)%.
• Adjusted EBITDA was EUR 0.4 (5.5) million, or 0.5 (10.2)% of revenue.
• The operating profit was EUR -2.3 (3.2) million. The profit margin -3.1 (6.0)%.
• Undiluted earnings per share were EUR -0.23 (0.11).
• The order backlog stood at EUR 526 (288) million at the end of the review period.
• On 17 January 2023, Enersense announced that it had signed an agreement of around EUR 35 million on the construction of an optical fibre network in Finland with Valoo, a Finnish optical fibre company.
• On 27 February 2023, Enersense’s Board of Directors decided on the Group key employee incentive plan.
• On 27 March 2023, Enersense announced that The Boards of Directors of Enersense International Plc and MBÅ Invest Oy have decided to complete the merger of MBÅ Invest with Enersense in accordance with the merger plan signed on 23 September 2022.

Updated guidance for the financial period 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.

Earlier guidance, issued on 27 February 2023:

In 2023, Enersense’s revenue is expected to be in the range of EUR 280–310 million and adjusted EBITDA in the range of EUR 12–18 million.

Enersense’s business environment is estimated to be developing favourably and the revenue is expected to grow. 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

	1–3/2023	1–3/2022	1–12/2022
Revenue (EUR 1,000)	74,998	53,787	268,037
EBITDA (EUR 1,000)	58	5,410	12,210
EBITDA, %	0.1	10.1	4.6
Adjusted EBITDA (EUR 1,000)	392	5,479	13,654
Adjusted EBITDA, %	0.5	10.2	5.1
Operating profit (EUR 1,000)	-2,293	3,227	3,479
Operating profit, %	-3.1	6.0	1.3
Result for the period (EUR 1,000)	-3,778	1,203	-2,429
Equity ratio, %	30.6	42.3	28.8
Gearing, %	57.7	22.1	19.0
Return on equity, %	-6.0	2.5	-4.3
Earnings per share, undiluted, EUR	-0.23	0.10	-0.11
Earnings per share, diluted, EUR	-0.23	0.10	-0.11

President and CEO Jussi Holopainen

“Despite the uncertainties related to the global economy, Enersense had a strong start for the year 2023. Our revenue increased by 39% year-on-year, increasing to EUR 75 (54) million. Our order backlog also continued to grow and is already EUR 526 (288) million. Our EBITDA is typically at its lowest in the first quarter, but the profitability of our core business operations has improved, considering seasonality.

Our adjusted EBITDA was EUR 0.4 million (5.5) in the first quarter. Our investments in the ramp-up of the offshore wind power business and a new ERP system, EUR 2.3 million in total, were the most significant factors burdening EBITDA in the review period. It is also good to keep in mind that the recognition of EUR 8.5 million arising from the Megatuuli acquisition improved EBITDA in the comparison period.

Profitable core business operations lay the foundation for future growth. We will continue our active measures to ensure the profitability of our core business operations while also strengthening our position in our strategic focus areas. During the review period, as part of the integration of acquired entities, the names for Unified Chargers and Megatuuli were changed and they now continue under the common Enersense brand as Enersense Charging and Enersense Wind.

Markets for our strategic focus areas are developing well and for example, activity in the offshore wind power market is increasing, and we are strongly involved in bidding processes. Our high-quality foundation concept is a highly effective and cost-effective solution, particularly for the areas of the Baltic Sea that freeze up in the winter. Our previous customer relationships and good references enable deliveries to major international renewable energy and offshore wind power companies.

The work we have completed is also reflected in our order backlog, which developed favourably during the first quarter. In the first quarter, the Power business area recorded an agreement with Gigawatti Oy on the construction of the infrastructure for 13 power plants in Oosinselkä, in addition to agreements with Fingrid on substation projects worth EUR 20 million, among other contracts. Our onshore wind power projects are also progressing. In our project portfolio, the project including 50 wind power plants in Yli-Olhava in Ii proceeded to the next phase in February, when the regional wind power plan for Yli-Olhava entered into force. The project is being developed in collaboration with Enersense’s French partner Valorem, and the project investment is estimated at EUR 400–500 million. Wind measurements have been carried out for more than two years, and the wind conditions in the area are excellent. When completed, the wind farm is estimated to generate more than 1 TWh of electricity, or around 1.5% of Finland’s total electricity demand. The investment decision in the project is estimated to be made in 2024–2025.

In early 2023, we also announced our first project related to the green hydrogen economy, when we signed an agreement on the delivery of steel structures for reactor modules for a methanation plant to Q Power, a provider of Power-to-X technologies. The agreement is related to the synthetic methane production plant delivered by Q Power to P2X Solutions in Harjavalta. The plant is being built in connection with P2X’s green hydrogen production plant. Through its 16.3% holding in P2X, Enersense is involved in reducing the emissions of heavy transport using hydrogen and synthetic fuels and in enabling energy storage opportunities created by green hydrogen.

In the Connectivity segment, the increase in the demand for fibre-to-the-home (FTTH) construction projects began in late 2022. The trend continued in January, when we signed a four-year agreement on the construction of an FTTH network for Valoo. The total value of the agreement is EUR 35 million. High-speed data connections play a significant role in enabling the constantly growing data transfer capacity required by the energy transition, and Enersense is strongly involved in investing in the reliability, security and sustainability of Finnish data transmission.

For a long time, we have also been involved in projects to synchronise the Baltic countries with the frequency of the European electricity grid. In January, we announced that we had signed an agreement to modernise the power line between the Mustvee and Paide substations in Estonia. The project plays an important role in the synchronisation of the Baltic electricity grids.

We have today updated our outlook for 2023 as regards to the revenue development. Guidance for the EBITDA remains unchanged. Despite the general economic uncertainty, our order backlog has grown to over half a billion euro and based on this we expect the full-year revenue to grow over EUR 300 million.”

This release is a summary of Enersense’s Business Review January–March 2023. 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

The figures in this bulletin are unaudited. The figures in brackets refer to 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.

OCTOBER–DECEMBER 2022

• Revenue was EUR 90.0 (65.9) million, +36.6 % year-on-year.

• EBITDA was EUR 3.4 (6.2) million. The EBITDA margin was 3.7 (9.4) %.

• Adjusted EBITDA was EUR 4.3 (7.5) million or 4.8 (11.4) % of revenue.

• The operating profit was EUR 1.1 (4.0) million. The profit margin was 1.2 (6.1) %.

• Undiluted earnings per share were EUR -0,04 (0.26).

 

JANUARY–DECEMBER 2022

• Revenue was EUR 268.0 (239.1) million, +12.1 % year-on-year.

• EBITDA was EUR 12.2 (16.6) million. The EBITDA margin was 4.6 (7.0) %.

• Adjusted EBITDA was EUR 13.7 (19.2) million, or 5.1 (8.0) % of revenue.

• The operating profit was EUR 3.5 (6.8) million. The profit margin was 1.3 (2.9) %.

• Undiluted earnings per share were EUR -0.11 (0.35).

•     Onshore wind power project portfolio was approximately 8,000 MW at the end of the year 2022 (9/2022: 3,000 MW).

• The order backlog stood at EUR 415 (291) million.

 

• On 11 October 2022, the Finnish Competition and Consumer Authority approved a business transfer through which certain operation and maintenance services of Helen Oy would be transferred to Enersense.

•     On 20 October 2022, Enersense announced that it had further specified the focus areas of its growth strategy and would focus on zero-emission transport alongside onshore and offshore wind power and solar energy. This supports the company’s long-term financial targets, which remained unchanged.

•     Enersense’s acquisition of Unified Chargers Oy, a Finnish start-up which manufactures fast and high-power charging stations for electric vehicles, was completed on 15 November 2022.

•     The offering of a EUR 26 million Senior Unsecured conditionally Convertible Note due January 2027 was completed on 2 December 2022.

•     On 9 December 2022, Enersense and Elisa signed a project agreement of EUR 30 million on the construction of an optical fibre network in Finland.

After the review period:

•     On 13 January 2023, Enersense announced that the Finnish Competition and Consumer Authority had decided to extend the processing of the acquisition concerning Voimatel Oy.

•     On 17 January 2023, Enersense announced that it had signed an agreement of around EUR 35 million on the construction of an optical fibre network in Finland with Valoo, a Finnish optical fibre company.

•     On 23 January 2023, Enersense announced that its adjusted EBITDA would exceed its guidance (positive profit warning).

•     On 26 January 2023, Enersense announced that the Shareholders’ Nomination Board proposes that Anna Miettinen/Ensto Invest and Carl Haglund/Veritas will be elected as new board members.

•     On 15 February 2023, Enersense announced that it withdraws from the acquisition of Voimatel Oy.

DISTRIBUTION OF FUNDS TO THE SHAREHOLDERS

The Board of Directors of Enersense proposes to the General Meeting that the result for the financial period 1 January 2022 to 31 December 2022 be transferred to the profit and loss account for previous financial periods and that, based on the balance sheet to be adopted for the financial period, funds be distributed to shareholders from the invested unrestricted equity reserve of the Company as a return of capital of EUR 0.10 per share, i.e. EUR 1,649,253.10 in total. The return of capital shall be paid in two instalments.

The first instalment, EUR 0.05 per share, shall be paid to shareholders that are registered in the Company’s shareholders’ register maintained by Euroclear Finland Oy on the record date of the first instalment of the return of capital on 6 April 2023. The Board of Directors proposes that the first instalment of the return of capital shall be paid as from 5 May 2023.

The second instalment, EUR 0.05 per share, shall be paid to shareholders that are registered in the Company’s shareholders’ register maintained by Euroclear Finland Oy on the record date for the second instalment of the return of capital, as later decided by the Board of Directors. The Board of Directors will decide the record date and the payment date for the second instalment of the return of capital at its meeting to be held in October 2023. The record date for the second instalment of the return of capital is planned to be on 1 November 2023, and the payment date as from 8 November 2023.

According to the proposal, no dividend would be paid based on the balance sheet to be adopted for the financial period.

GUIDANCE FOR THE 2023 FINANCIAL YEAR

In 2023, Enersense’s revenue is expected to be in the range of EUR 280–310 million and adjusted EBITDA in the range of EUR 12–18 million.

Enersense’s business environment is estimated to be developing favourably and the revenue is expected to grow. 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.

BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS

The 2023 Annual General Meeting of Enersense International Plc is scheduled to take place on Tuesday 4 April 2023. The company’s Board of Directors will convene the Annual General Meeting separately.

Enersense’s Financial Statements and Board of Directors’ Report (ESEF), Corporate Governance Statement and Remuneration Report for 2022 will be published during the week beginning 6 March 2023. All reports will be available on the company’s website at  www.enersense.com/en/investors/. 

WEBCAST

A webcast for media representatives, investors and analysts will be held on 27 February 2023 at 2.45 p.m. The webcast is held in Finnish. The webcast can be followed live at  https://enersense.videosync.fi/q4-2022-result

Key figures

	10–12/2022	10–12/2021	1–12/2022	1–12/2021
Revenue (EUR 1,000)	90,033	65,909	268,037	239,110
EBITDA (EUR 1,000)	3,367	6,188	12,210	16,639
EBITDA, %	3.7	9.4	4.6	7.0
Adjusted EBITDA (EUR 1,000)	4,350	7,525	13,654	19,231
Adjusted EBITDA, %	4.8	11.4	5.1	8.0
Operating profit (EUR 1,000)	1,095	4,047	3,479	6,834
Operating profit, %	1.2	6.1	1.3	2.9
Result for the period (EUR 1,000)	-668	3,349	-2,429	3,973
Equity ratio, %	28.8	35.6	28.8	35.6
Gearing, %	19.0	3.6	19.0	3.6
Return on equity, %	-1.1	7.0	-4.3	8.3
Earnings per share, undiluted, EUR	-0.04	0.26	-0.11	0.35
Earnings per share, diluted, EUR	-0.04	0.26	-0.11	0.35

President and CEO Jussi Holopainen

“2022 was characterised by growing geopolitical tensions, global economic uncertainty, and the energy crisis in Europe, all of which are related to the aggressive Russian attack on Ukraine in February 2022. In this business environment, the past year was twofold for Enersense. Our revenue increased to EUR 268 (239) million and the order backlog increased significantly, but profitability was weakened, for instance, by multiplier effects of the war, which could not be offset by the increase in volumes.

In the summer, we were already anticipating that the full year would be challenging in terms of profitability. Although our adjusted EBITDA exceeded the updated guidance we issued in July, it stayed low at EUR 13.7 (19.2) million. The improvement of the profitability of our core business operations is at the top of the management’s agenda, and we are actively continuing our measures to turn the trend around. At the same time, however, it is my pleasure to announce that the investments in our growth strategy have already begun to be reflected in orders received. Our order backlog increased by 42 per cent compared with the end of 2021 and grew to EUR 415 million.

The strong order backlog gives us a good starting point for the year. In the financial guidance we have published today we estimate that the business environment is developing favourably and the revenue for 2023 is expected to be in the range of EUR 280–310 million. The adjusted EBITDA is expected to be in the range of EUR 12-18 million. 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. We expect these development projects to proceed so that they will not burden our profitability in 2024 anymore and we can expect the EBITDA to continue to increase.

To our disappointment, the Finnish Competition and Consumer Authority’s assessment of the Voimatel transaction led us to withdraw from it. According to our assessment the transaction would have been a good solution for creating, developing and maintaining critical telecommunications and network infrastructure for the whole of Finland. However, the non-implementation of the acquisition will have no effect on the objectives of our growth strategy and their attainment. In 2022, we proceeded in implementing our strategy in many fronts.

In the third quarter, our order backlog reached record levels with the inclusion of a service contract on the provision of the operation and maintenance services that were transferred from the Helen energy company to Enersense as part of a business transfer. In October, we acquired a Finnish start-up which manufactures fast and high-power charging stations for electric vehicles. In December, we announced its first significant order, a delivery of heavy-duty fast-charging sites for e-trucks to Sweden. In December, we also announced that Enersense will deliver structural components for three offshore substations to the Danish Bladt Industries, a leading European provider of foundations for offshore wind power plants. For around a year, we have been investing in the ramp-up of Enersense Offshore, and already this first project, running until the second quarter of 2024, will employ up to 300 people in our Mäntyluoto production facilities. Orders related to the core operations of all our business areas have also developed favourably.

In addition to strong core businesses, we want to focus on seeking growth from offshore wind power foundations, renewable energy, and zero-emission transport. Orders received at the end of last year in the offshore wind power and EV charging businesses are evidence of our great success within these focus areas of our specified growth strategy. Today, we have also reported on the significant advancement in the development of the onshore wind power project portfolio. At the end of 2022, the project portfolio was already approximately 8,000 MW whereas in September it was around 3,000 MW. With our solar power projects, the size of our renewable energy project portfolio is altogether over 8,000 MW, which gives us a solid ground on which to build our target to have our own 600 MW onshore wind and 100 MW solar power production.

Besides these Enersense projects, we are also a co-owner in P2X, a producer of green hydrogen. P2X Solutions’ Harjavalta plant is Finland’s first industrial-scale green hydrogen production plant that is progressing to the construction stage, and the foundation stone of the plant was laid in January 2023. We consider hydrogen to play a significant role in the green transition, both in storing electricity and enabling zero-emission heavy transport, and we are pleased to be able to support P2X in executing this development.

We have set ourselves ambitious financial targets of EUR 500 million in revenue and EUR 100 million in profitability (EBITDA) by 2027. This growth also requires financial investments. At the beginning of December, we issued Enersense’s first convertible bond, raising a total of EUR 26 million for investments and other business developments, among additional purposes. We are delighted with the support that both new and former investors have shown through their investments in Enersense and its journey as an enabler of the European energy transition.”

This release is a summary of Enersense’s Financial Statement Bulletin 2022. 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.
 

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

This release is a summary of Enersense International Plc’s January-September 2022 Business Review. The company complies with the semiannual reporting in accordance with the Finnish Securities Markets Act and discloses business reviews for the first three and first nine months of the year, which present key information regarding the company’s financial position and development. The financial information presented in the business review is unaudited. 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.

JULY–SEPTEMBER 2022

• Revenue was EUR 64.4 (58.3) million, showing an increase of 10.5%.

• EBITDA was EUR 4.0 (2.9) million. The EBITDA margin was 6.3% (5.1)

• Adjusted EBITDA was EUR 4.3 (4.4) million, or 6.6% (7.5) of revenue.

• The operating profit was EUR 1.9 (0.4) million. The profit margin was 3.0% (0.7).

• Undiluted earnings per share were EUR 0.07 (0.01).

JANUARY–SEPTEMBER 2022

• Revenue was EUR 178.0 (173.2) million, showing an increase of 2.8 %.

• EBITDA was EUR 8.8 (10.5) million. The EBITDA margin was 5.0% (6.0).

• Adjusted EBITDA was EUR 9.3 (11.7) million, or 5.2% (6.8) of revenue.

• The operating profit was EUR 2.4 million (2.8). The profit margin was 1.3% (1.6).

• Undiluted earnings per share were EUR -0.11 (0.07).

• The order backlog stood at EUR 385 million (272) at the end of September.

• On 31 August 2022, Enersense announced an extensive strategic cooperation agreement (4 + 2 + 2 years) with Helen Oy on operation and maintenance tasks. The maximum amount of the acquisition, including the options, is EUR 200 million, of which EUR 100 million has been recognised in the order book for the third quarter.

• On 23 September 2022, Enersense announced that it had signed a business combination agreement with MBÅ Invest Oy, its second largest shareholder. Based on the agreement, MBÅ Invest will merge with Enersense.

After the review period:

• On 11 October 2022, Enersense announced that the Finnish Competition and Consumer Authority had approved a business transfer through which certain operation and maintenance services of Helen Oy will be transferred to Enersense.

• On 20 October 2022, Enersense announced that it had further specified the focus areas of its growth strategy and would focus on zero-emission transport alongside onshore and offshore wind power and solar energy. This supports the company’s long-term financial targets, which remain unchanged.

GUIDANCE FOR THE 2022 FINANCIAL PERIOD

Enersense reiterates its earlier financial guidance:

According to the company’s financial guidance, revenue is expected to be in the range of EUR 245–265 million and adjusted EBITDA EUR 6–12 million in 2022.

Key figures

President and CEO Jussi Holopainen:

“After the challenging first part of the year, we are pleased to announce that in July–September almost all our segments improved their EBITDA, and the Group’s operating profit improved from the comparison period and the second quarter of 2022. Our order backlog and the company’s cash situation improved as well.

Enersense’s revenue in January–September grew to EUR 178 (173) million, which represents an increase of 2.8% year-on-year. Revenue increased in all segments except Smart Industry, where volumes have decreased following the completion of the Olkiluoto 3 project. Due to a weak first half of the year, EBITDA in the review period was below the previous year’s level. EBITDA decreased by 15.4% and was EUR 8.8 million (10.5).

In these exceptional times, we have every reason to be satisfied with our overall performance. We succeeded in the pricing and implementation of several projects. With the inflation rate rising rapidly, we also succeeded in negotiating increases to the prices of materials with many customers for existing and new contracts.

Despite the challenging operating environment, our order backlog has developed steadily during the year. In the third quarter, our order backlog grew significantly and stood at EUR 385 (272) million at the end of September. In our Smart Industry segment, we have worked hard during 2022, building a foundation for future growth. Examples of this work include the ramp-up of Enersense Offshore and an agreement on outfitting work for two new ferries at the Rauma shipyard for TT-Line Company. An extensive strategic cooperation agreement with the energy company Helen on operation and maintenance tasks related to plants and networks was recorded in the Smart Industry segment’s order backlog in the third quarter. The strategic goal of both Enersense and Helen is to play a key role in the green transition, and this agreement enables us to contribute to Helen’s vision of achieving carbon neutrality by 2030. It is also our pleasure to welcome the operation and maintenance professionals who are transferring from Helen to Enersense!

After the end of the review period, we announced that we had further specified the focus areas of our growth strategy by focusing on zero-emission transport alongside onshore and offshore wind power and solar energy. In this area, we are seeking new business in charging solutions for electric transport, for example. In the zero-emission transport sector, our goal is to expand our role in the value chain from being an installation and service partner for companies that provide charging equipment solutions to becoming a manufacturer of charging devices, which we believe holds significant growth potential for us. We also announced that we had signed an agreement to acquire Unified Chargers Oy, a Finnish growth company manufacturing fast charging stations and high-power charging stations for electric cars. When the corporate arrangement is implemented, Enersense will be able to offer a complete range of advanced and customisable charging solutions for public sites and the needs of heavy transport, as well as smart services for charging station operations.

We are also determined to pursue our goal of energy production of our own, which involves building 600 MW of capacity for onshore wind power and 100 MW for solar power by 2027. Our subsidiary Megatuuli Oy plays a key role in achieving our goal for onshore wind power. Its current onshore wind power project portfolio (3,000 MW) enables the development of our own energy production. Megatuuli has projects in the feasibility study phase (2,000 MW) and in the permit, land use and EIA phase (1,000 MW). We will begin to report on the development of this project portfolio as part of our half-yearly reporting for the first and second half of each year.

The core of our growth strategy consists of seeking new business in onshore and offshore wind power, solar energy and zero-emission transport. However, the cost-efficiency of our basic business operations and profitable growth are, at least, equally important for us. I am very pleased with how we have succeeded in developing our operations continuously and systematically towards best practices in all sectors. It is great to see how our new operating methods have already proved to be broadly successful, and our internal development work towards our common goals continues in cooperation with our highly competent personnel. 

In September, we announced a business combination agreement through which MBÅ Invest, our second largest shareholder, will merge with Enersense. An extraordinary general meeting convened by Enersense’s Board of Directors will be held on 10 November 2022 to discuss decisions related to the merger of Enersense International Plc and MBÅ Invest Oy, among other matters. The purpose of the merger is to increase the transparency and equality of the ownership and governance, and simplify the ownership structure of Enersense. The transaction will bring MBÅ Invest’s holding better to the fore and make the executives’ true ownership in the company transparent. The transaction will also increase the management’s commitment through long-term transfer restrictions on shares. The elimination of indirect ownership is also aimed at improving the liquidity of Enersense shares.”

Pori 28 October 2022
Enersense International Plc
Board of Directors

Additional information:

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

This release is a summary of Enersense International Plc’s January-March 2022 Business Review. 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.
 

January–March 2022

• Revenue EUR 53.8 million (53.3), 0.9% year-on-year

• EBITDA EUR 5.4 million (1.7), EBITDA margin 10.1% (3.2)

• Operating profit EUR 3.2 million (-0.6), profit margin 6.0% (-1.2)

• The order backlog stood at EUR 295,5 million (309,0) at the end of the first quarter of the year

• Adjusted EBITDA EUR 5.5 million (2.6), or 10.2% of revenue (4.8)

Guidance for the 2022 financial period

The company reiterates its financial guidance, according to which its revenue is expected to be EUR 245–265 million in 2022, and its adjusted EBITDA is expected to be EUR 15–20 million. Compared with the previous year, the result for 2022 will be burdened by investments in a new ERP system. Investments in offshore wind power, a growing sector, will also affect the result.

Key indicators
 

	1–3/2022	1–3/2021	1–3/2021
Revenue (EUR 1,000)	53,787	53,308	239,110
EBITDA (EUR 1,000)	5,410	1,682	16,639
EBITDA, %	10.1	3.2	7.0
Adjusted EBITDA (EUR 1,000)	5,479	2,565	19,231
Adjusted EBITDA, %	10.2	4.8	8.0
Operating profit (EUR 1,000)	3,227	-619	6,834
Operating profit, %	6.0	-1.2	2.9
Result for the period (EUR 1,000)	1,129	-1,331	3,973
Equity ratio, %	42.3	24.0	35.6
Gearing, %	22.1	16.2	3.6
Return on equity, %	2.5	7.0	8.3
Earnings per share, EUR	0.10	-0.12	0.35

President and CEO Jussi Holopainen

“In terms of performance, the first quarter of 2022 was the best first quarter in the history of Enersense. We achieved EUR 53.8 million (53.3) in revenue (+ 0,9%) and EUR 5.5 million (2.6) in adjusted EBITDA (+ 113,6%). Our operating profit improved significantly year-on-year and was EUR 3.2 (-0.6) million. Our profit margin increased to 6.0% (-1.2%).

The year 2022 has started in an environment that is exceptional in many ways. The coronavirus pandemic continues, and the Russian attack on Ukraine has shocked everyone. It has been particularly important to Enersense to support our Ukrainian colleagues and their families in the midst of the crisis.

The war has caused inflation to increase, very steeply in some countries, and there are challenges in the supply chains for materials. So far, however, we have been able to navigate this environment reasonably. We are continuously monitoring the situation and are seeking solutions to continue to manage the challenging global market situation.

As a provider of zero-emission energy solutions, Enersense has long played a key role in enabling the green transition. The Russian attack on Ukraine has accelerated the process to end dependence on Russian oil, gas and coal production. Energy self-sufficiency and the replacement of fossil fuels with renewable energy sources are progressing rapidly and will continue to do so in the near future. Enersense plays an important role in these projects. We are extensively involved in projects related to energy production, transmission, efficiency and storage, from design to construction and from maintenance to servicing. Good examples of these in the first quarter include the Fingrid power line contract that we won in Kuopio and S Group’s wind farm maintenance contract, which increases our share of wind power maintenance to more than 50% of all electricity networks in wind farms in Finland.

The corporate arrangements we completed early in the year were timely and successful, in addition to being significant additions to our capacity to respond to the acceleration of the green transition and energy self-sufficiency. We took a major step to reinforce our role in the value chain for wind power production by acquiring Megatuuli Oy, an onshore wind power development company, on 1 February 2022. Megatuuli supplements and supports Enersense’s strong service portfolio and enables us to develop, build and maintain wind farms. We also aim to serve as wind farm owners and produce zero-emission energy in the future. Megatuuli’s goal is to develop and build 1,000 MW of wind power by 2025, in cooperation with its partners. Megatuuli and its partners have wind power plant projects in progress or in the feasibility study phase, with a total capacity of around 3,000 MW.

Our investment in P2X Solutions Oy, a green hydrogen production company, is significant and strongly supports Enersense’s strategy. The investment was completed on 14 February 2022. Wind power and the production of green hydrogen are strongly interlinked, and we have strong expertise throughout the value chain. In addition to a holding of around 16%, the investment provides us with a primary partnership option in the construction of Finland’s first green hydrogen production plant in Harjavalta, as well as in maintenance and operation tasks after the completion of the plant. Hydrogen is a great opportunity for us and for Finland as a whole, and it’s a privilege to be involved in creating a hydrogen market in Finland.

In early 2022, Enersense’s highly competent team of around 2,000 professionals was further enhanced through corporate arrangements and recruitment. I welcome all our new colleagues to Enersense, on our journey towards the green transition and energy self-sufficiency. I would also like to take this opportunity to thank every member of the Enersense community for their strong input in these challenging global circumstances. As always, we can overcome these challenges through cooperation.”
 

Pori 29 April 2022
Enersense International Plc
Board of Directors
 

This is not an interim report in accordance with IAS 34. The company follows a half-year reporting cycle in accordance with the Securities Markets Act, and it publishes business reviews with key financial performance information for the first three and nine months of the year.

The financial information presented in the business review is unaudited.
 

Financial reporting in 2022

Enersense will publish the following reports in 2022:

• Half-year report for January–June on 4 August 2022
• Business review for January–September on 28 October 2022
   

Capital Markets Day on 3 May 2022
 
You are welcome to hear more about the subject at the Capital Markets Day for shareholders, investors, analysts and bank and media representatives held on 3 May 2022 from 1 to 4 pm. The event can be followed live via webcast: https://enersense.videosync.fi/2022-cmd.  
 
Based on the current estimate, max. 40 people can attend the event in the centre of Helsinki, at Sanomatalo’s Studio Eliel. Seats for analysts, institutional investors and media representatives will be filled in the order of registration. Please send your registration for the event to: tommi.manninen@enersense.com.