Märkte & Kurse

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Original-Research: Cloudberry Clean Energy ASA - from NuWays AG

22.08.2024 / 09:02 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
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Classification of NuWays AG to Cloudberry Clean Energy ASA

     Company Name:               Cloudberry Clean Energy ASA
     ISIN:                       NO0010876642

     Reason for the research:    Update
     Recommendation:             BUY
     from:                       22.08.2024
     Target price:               NOK 19.00
     Last rating change:
     Analyst:                    Simon Jouck

Strong Q2 marked by value accretive capital recycling; chg.

Q2 sales increased by 12% yoy to NOK 83m stemming from a 22% yoy increase of
power production (143 GWh), primarily attributed to a full quarter of
production from the Odin portfolio and contributions from Sundby, which
compensated for last year's sales of three hydro assets. The growth of power
production offset the decreased average power price (from NOK 0.76/kWh to
NOK 0.59/kWh). Total revenue, which also includes the book gains from asset
sales decreased by 38% to NOK 207m.

Q2 EBITDA came in at NOK 180m, down 36% yoy due to a significantly lower
book gain from asset disposals. Adjusting for book gains, the fundamentals
paint a strong picture with EBITDA of NOK 71m (+NOK 49m yoy) thanks to a
notably improved income from associated companies (+ NOK 30m yoy).

Value accretive capital recycling. At the end of June, Cloudberry sold three
additional non-core hydro assets to Cadre AS with a combined annual
production capacity of 36 GWh. The achieved valuation exceeded 2.3x the book
value (NOK 320m transaction value and generating NOK 205m of free cash) with
an IRR of around 28%. With this, the company increased its stake in Forte
Energy by 15.99% to 49.99%. Mind you, Forte is hydropower portfolio with an
annual production of 234GWh in the attractive NO2 and NO5 price areas.

The price of the 15.99% stake stood at roughly 1.1x the Q1 2024 book value
of Cloudberry' Forte shares. Most importantly, this underpins the hidden
reserves of the balance sheet and the company's ability to recycle cash in a
value accretive way.

Portfolio build-out remains on track. The Sundby windfarm (32 MW) is
currently undergoing test production and final construction is likely to be
completed by the end of Q3. Further, Munk (19 MW wind) is developing ahead
of the initial timeline and is seen to begin commercial production also by
the end of Q3. On top, Cloudberry should be able to make a final investment
decision regarding its 140 MW PV farm Nees as early as this year. With its
219 MW mature development backlog, Cloudberry looks set to grow its
production portfolio to almost 500 MW until mid/end of 2026e.

Despite the recent ~ 40% share price increase, the company still looks
attractively valued. We confirm our BUY rating with an unchanged NOK 19 PT
based on SOTP.

You can download the research here: http://www.more-ir.de/d/30587.pdf
For additional information visit our website: www.nuways-ag.com/research

Contact for questions:
Die Analyse oder weiterführende Informationen zu dieser können Sie hier
downloaden
www.nuways-ag.com/research.
Kontakt für Rückfragen
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

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1972747 22.08.2024 CET/CEST

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