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First Impression Zazz Energy, Q1 2023: Hope for a quick restart of the Amfilochia plant

11 May 2023

Today, Zazz Energy published its interim report for the first 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 8th, 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 30th. The agreement is expected to be formalized through a binding contract around the end of May or early June.
  • Zazz Energy S.A.’s net sales in Q1 2023 amounted to SEK 0 million, in line with our estimate following the production stop announced in October 2022. We had projected a compensation of around SEK 1.6 million for lost revenue due to the stoppage. However, the company did not receive compensation during the quarter, resulting in total revenues of approximately SEK 0.0 million.
  • EBITDA amounted to minus SEK 3.7 million. We had expected an EBITDA result of minus SEK 1.8 million. The difference between our forecast and the outcome is attributable to the lack of compensation. Other external costs in Q1 2023 amounted to about SEK 2.5 million, slightly lower than our forecast of about SEK 2.7 million. Personnel costs came in slightly higher than our forecast. In terms of personnel costs, we had expected minus SEK 0.7 million, but the actual personnel costs amounted to minus SEK 1.2 million.
  • EBT for Q1 2023 amounted to minus SEK 4.3 million, which is lower than our forecast of minus SEK 3.1 million. The deviation between our projections and the actual outcome is attributable to the absence of compensation and higher-than-expected personnel costs.

We still consider the risk surrounding the company to be very high, and an actual agreement to restart the plant in Amfilochia needs to be signed before we can adjust our risk assumptions. We intend to provide an analysis update for Zazz Energy shortly. Read the latest research update here.



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First Impression Zazz Energy, Q1 2023: Hope for a quick restart of the Amfilochia plant