As we highlighted going into the quarter, we expected Enviro to report a Q1 EBITDA in the range of SEK25m-35m. The actual outcome was in the upper interval, amounting to SEK34.1m. The reason for this seems to be due to lower-than-expected other external costs, such as bank fees and solicitor costs, which burdened the OPEX in Q1 2023.

CEO Fredrik Emilson highlights that the construction of the Uddevalla plant is going according to plan (which all the met milestones are a testament to) and that the company hopes to reach its ambitious target of being up and running in the second half of 2025. The current owner share of 8.8% in the JV was also reiterated, which we highlighted in a note yesterday (following yesterday’s press release on the matter).

In our view, nothing extraordinary stands out in the report. However, we note that investments in financial fixed assets in the quarter amounted to SEK68.7m, of which SEK26.5m were related to shares in the JV (as we expected) and SEK42.2m is related to “share-related investments in the JV”. We fail to fully grasp the latter (and how it may affect Enviro’s ownership in the JV) and hope to get back with additional insights. At this point, we interpret it as Enviro having made additional investments into the JV apart from the shares received as partial payments.

All in all, the net profit amounted to SEK30.8m, and the cash position amounted to SEK209m.