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Introduction & Market Context
Cloudberry Clean Energy (OB:CLOUD) released its second quarter and first half-year 2025 results on August 20, 2025, revealing a mixed performance with lower revenue despite increased power production. The Nordic renewable energy company, which closed at NOK 13.50 on August 19, has been navigating a transformative period in the renewable energy market across the Nordic region.
The company’s presentation highlighted its diversified portfolio across hydro, wind, solar, and battery storage projects, with a particular strategic focus on expanding its hydro power capabilities. This comes amid favorable market conditions in the Nordics, driven by EU energy transition policies and increasing power deficits in southern Norway and Sweden.
Quarterly Performance Highlights
Cloudberry reported a significant year-over-year decline in both revenue and EBITDA for Q2 2025, despite achieving higher power production volumes. Consolidated revenue fell to NOK 106 million from NOK 207 million in Q2 2024, while proportionate revenue decreased to NOK 157 million from NOK 288 million. Similarly, consolidated EBITDA dropped to NOK 43 million from NOK 180 million, with proportionate EBITDA declining to NOK 54 million from NOK 194 million.
As shown in the following chart of key financial metrics and production figures:
The company attributed this performance decline partly to effects of sales recorded in previous quarters that were not present in Q2 2025. Despite the revenue and EBITDA decrease, power production increased to 199 GWh in Q2 2025, up from 143 GWh in the same period last year, representing a 39% increase. This production growth contributed to avoided emissions of 49,500 tCO2e, compared to 33,500 tCO2e in Q2 2024.
The company’s financial results by segment show that the commercial segment, which includes power-producing assets, experienced the most significant decline:
Strategic Initiatives
A key strategic development highlighted in the presentation is Cloudberry’s transformation into a leading industrial hydro power developer following its partnership with Swiss Life (SIX:SLHN). This strategic shift has increased Cloudberry’s hydro power exposure by more than 50%, adding over 100 GWh to its portfolio.
The following diagram illustrates how this partnership has restructured ownership and expanded Cloudberry’s hydro power capabilities:
Cloudberry outlined four strategic growth initiatives for 2025, including hydro expansion, the Dingelsundet battery project (which reached final investment decision for phase one), a partnership with Sveaskog (one of Europe’s largest landowners), and Danish expansion of 160 GWh financed at approximately 52% share premium in Q1 2025.
Looking forward, the company emphasized a strategic focus on "profitability over growth," maintaining a fully financed industrial platform, and executing on existing projects. This represents a shift from the previous growth-oriented strategy mentioned in the Q1 2025 earnings call.
Financial Position
Despite the quarterly performance challenges, Cloudberry maintained a strong balance sheet with total assets of NOK 7,101 million as of Q2 2025, up from NOK 6,883 million in Q2 2024. The company’s consolidated equity stood at NOK 4,667 million, slightly down from NOK 4,757 million a year earlier.
The following chart shows Cloudberry’s financial position as of Q2 2025:
Interest-bearing loans and borrowings increased to NOK 2,125 million from NOK 1,700 million in Q2 2024, while cash and cash equivalents decreased to NOK 771 million from NOK 934 million. The company noted that over 80% of its debt is fixed at long-term rates below 4%, consistent with what was reported in the Q1 2025 earnings call.
Cloudberry’s liquidity position remains strong, with proportionate cash of NOK 848 million and available liquidity of NOK 700 million after accounting for remaining capex and the Forte transaction:
The company’s long-term financial trajectory shows substantial growth since its IPO, despite the recent quarterly decline:
Market Outlook
Cloudberry presented a positive outlook for the Nordic renewable energy market, highlighting several favorable developments that support its strategic positioning:
Key market drivers include EU policies supporting the energy transition, strong demand for new renewable energy driven by electrification of industry and transport, emerging power deficits in southern Norway and Sweden, and a positive shift in long-term power prices.
The company noted that power prices have stabilized after the volatility of recent years, with Thema Nordic price estimates showing NOK 0.61/kWh for the last twelve months ending Q2 2025, compared to NOK 0.60/kWh in 2024 and the peak of NOK 1.49/kWh in 2022.
In conclusion, while Cloudberry faces short-term revenue and EBITDA challenges, its increased production, strategic partnerships, and strong balance sheet position it to capitalize on favorable market conditions in the Nordic renewable energy sector. The company’s pivot toward hydro power expansion and its "profitability over growth" strategy signal a more focused approach to value creation in a competitive market environment.
Full presentation:
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