European Energy achieved EBITDA of €12m in Q2 2022, a rise from the €7m reported in Q2 last year.
The renewables developer recorded a profit before tax of €6.4m compared to €0.9m in Q2 last year.
Halfway through 2022, the Group has delivered almost 57 % (€77.1m) of the EBITDA outlook for 2022 and almost 70% (€69.2m) of the profit before tax outlook for 2022, it said.
While the energy prices are at a historically high level, the current high inflation as well as other factors has resulted in higher prices for the procurement for future projects with both construction and financing costs being increased, according to the directors.
European Energy chief executive Knud Erik Andersen (pictured) said: “In this strange year we are pleased to present a Q2 result which sets up a good foundation to meet our expectations for the 2022 outlook.
“Currently we see two major tendencies disrupting the energy market.
“The energy prices remain at a high level and so do the prices for steel, logistics and solar panels.
“At the same time inflation and interest rates are rising.
“We believe that increasing investment in new renewable electricity production is the best and only long-term solution to reduce both energy prices and CO2 emissions.
“This is also why European Energy will continue to use all free cash to invest in new projects.”
The planned construction activities in various markets for the second half of 2022 will include the grid connection of “record” high 600+ MW of new renewable energy capacity.
The actual grid connection date for the projects may impact the final year end result, the directors said.
They added that the current guidance does not include power sales from these new assets.
If all assets are connected without delays, power sales may exceed outlook if the energy market remains at the current level throughout the year.
The increase in the development pipeline of European Energy from 16GW in Q2 2021 to 24GW in Q2 2022 is a result of the ability of the Group to secure land plots for new projects.
This further illustrates the keen interest from external partners in committing to the green transition, the board said.
Total revenue in the Group was €285.5m in the first half of 2022 compared to €38.1m in the first half of 2021.
The main reason for this sharp increase is divestment of energy parks made in Q1 2022.
The outlook for European Energy in the financial year of 2022 remains at an EBITDA at €135m and profit before tax €100m.
If power prices stay at the current levels, the group will consider keeping a few more assets by that strengthen the IPP activity.
The newest business area, Power-to-X, is experiencing an increasing interest from the stakeholders and business partners with a new contract on green hydrogen for Port Esbjerg (DK) and a new research project regarding green aviation fuel.
European Energy is pursuing a strategy to keep more assets in the Group for a longer period.
Therefore, the Group has only concluded a smaller project sale in Q2 2022.
Among new projects of interest are plans to construct the largest solar park in Latvia in close cooperation with Latvian authorities, the board added.