Cloudberry Clean Energy ASA: Upgraded Annual Outlook Despite Exceptional Charges

NuWays AG has released an update on Cloudberry Clean Energy ASA, maintaining its buy recommendation with a price target adjusted to 19 NOK. Cloudberry has announced preliminary results for the fourth quarter of 2023, showing a significant sales increase of 70% compared to the previous year, reaching 119 million NOK, mainly due to higher production and an elevated average selling price. However, the operating result was impacted by non-recurring charges totaling 75 million NOK, related to the impairment of the Steenkalles wind project and additional expenses for the Odal wind farm, following the introduction of a resource tax in Norway.

The report also highlights the successful completion of the Sundby wind farm in Sweden, expected to generate annual revenues of approximately 56 million NOK. Cloudberry continues to make progress on its other projects, including the Munkhyttan wind farm and the Ovre Kvemma hydroelectric power plant, which are expected to be commissioned soon.

Despite the challenges posed by exceptional charges, NuWays AG's analysis remains positive on Cloudberry's outlook, citing the operational excellence of the company and slightly adjusting downward its price target due to the impact of the new resource tax.