Strong Q2 Performance for Cloudberry Clean Energy ASA

Cloudberry Clean Energy ASA has received a "BUY" recommendation from NuWays AG, with a target price of NOK 19.00. The Q2 results were notable, marked by a 12% year-on-year increase in sales to NOK 83 million, driven by a 22% rise in power production at 143 GWh. This was due to a full quarter of production from the Odin portfolio and contributions from Sundby, offsetting sales of three hydro assets from the previous year.

Despite this growth, total revenue decreased by 38% to NOK 207 million, primarily due to lower average power prices and significantly lower book gains from asset disposals. Q2 EBITDA was NOK 180 million, a 36% decrease year-on-year. However, adjusting for book gains, the fundamentals were solid with an EBITDA of NOK 71 million, supported by improved income from associated companies.

Cloudberry sold three non-core hydro assets to Cadre AS, generating NOK 205 million in free cash and increasing its stake in Forte Energy to 49.99%. The Sundby windfarm and Munk wind project are on track for commercial production by the end of Q3. Additionally, a final investment decision on the 140 MW PV farm Nees is expected soon. Cloudberry aims to grow its production portfolio to almost 500 MW by mid to late 2026.

Despite a recent 40% share price increase, Cloudberry remains attractively valued. NuWays AG reaffirms its "BUY" rating with an unchanged target price of NOK 19.