^

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

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

---------------------------------------------------------------------------

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.

++++++++++

---------------------------------------------------------------------------

The EQS Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com

---------------------------------------------------------------------------

1972747 22.08.2024 CET/CEST

°