European Energy has posted record results for 2023 with a 27% increase on earnings before interest, tax, depreciation and amortisation (EBITDA) to €178m.
Profit before tax increased by 10%, to €126m, with 2023 marking the fifth consecutive year the company has reached or exceeded its financial guidance.
In terms of power generation, the company produced 1.87 terawatt hours (TWh) of renewable electricity in 2023 from self-owned assets, an increase of 140% compared to 2022.
In 2023, European Energy divested projects with a total capacity of 1120MW and grid connected 750MW of new renewable energy capacity.
“During the past three years, we focused on expanding our business capacity, developing our competencies in new technologies such as Power-to-X, and scaling and professionalising our organization to cope with the high growth pace.
“We have concluded the previous strategy period and are ready to write a new chapter in the company’s history,” said Knud Erik Andersen (pictured), CEO of European Energy.
To support the future growth, the company’s net development pipeline was at 39GW at the year’s end, marking a 20% increase from 31GW at the end of 2022.
Several important partnerships were established. In the Power-to-X business, Mitsui & Co became a partner in European Energy’s leading e-methanol project in Kasso, Denmark, and agreements were signed with TotalEnergies on both onshore and offshore renewable energy production.
Looking ahead to 2024, partnerships will continue to be relevant not only at the project level.
In January 2024, Mitsubishi HC Capital agreed to acquire 20% of European Energy, a transaction that is pending regulatory entities approvals.
This will “significantly increase” the company’s financial capacity, enabling a new wave of growth and consolidating the ambition as a major global player in driving the green transition.
European Energy expects an EBITDA of €230m for 2024, equivalent to a growth of approximately 30% compared to 2023.
Profit before tax is also expected to continue to grow, albeit at a lower rate than EBITDA.