NuWays AG Updates Recommendation for Cloudberry Clean Energy ASA

NuWays AG has updated its research on Cloudberry Clean Energy ASA, reaffirming a "Buy" recommendation with a target price of NOK 19.00, expected within 12 months. The recent analysis follows Cloudberry's strong Q1 2024 performance, despite production shortfalls at the Odal wind farm, which were covered by warranties.

In Q1, Cloudberry's consolidated revenues saw a substantial increase of 89% year-on-year to NOK 129 million, driven by higher production volumes of 173 GWh, a 93% rise from the previous year. This growth was supported by the acquisition of the Danish wind portfolio Odin.

Consolidated EBITDA for Q1 surged by 190% year-on-year to NOK 58 million, compensating for issues at the Odal wind farm, which saw its EBITDA plummet from NOK 29 million to NOK 7 million due to severe operational problems. Claims related to these issues are expected to increase following further standstills in Q2.

Additionally, Cloudberry's Subby wind farm in Sweden began generating electricity ahead of schedule, and projects under construction are progressing as planned. The company accelerated its 175 MW PV park in Denmark due to solar panel price deflation, with a final investment decision anticipated by the end of the year.