Equity Research Zazz Energy, Q2 2023: Intensive quarter awaiting the restart of the Amfilochia plant

Today, Zazz Energy published its interim report for the second quarter of 2023. Below is a summary of our first impressions of the report’s outcome and the income statement’s deviations from our estimates.

• On May 8^th 2023, Zazz Energy declared that it had reached a principal agreement with its partner, NAIS, to resume operations at the Amfilochia plant. As per the agreement, both parties will jointly invest slightly above SEK 12 million, with the objective of restarting the plant by June 30^th At first, the agreement aimed at resuming the Amfilochia plant as of latest June 30, which has been postponed until September 15^th 2023.
• Zazz Energy S.A.’s net sales in Q2 2023 amounted to SEK 0 million, in line with our estimate following the production stop announced in October 2022. As in Q1, the company received approximately SEK 2.2 million compensation during the quarter, resulting in approximately SEK 2.2 million in total revenues.
• EBITDA amounted to minus SEK 1.7 million. We had expected an EBITDA result of minus SEK 3.1 million. Other external costs in Q2 2023 amounted to about SEK 3.2 million, higher than our forecast of about SEK 2.4 million.
• EBT for Q2 2023 amounted to minus SEK -3.0 million, which is higher than our forecast of minus SEK 5.9 million. The deviation between our projections and the actual outcome is attributable to the compensation of SEK 2.2 million received.

We intend to provide an updated research report on Zazz Energy shortly.

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