The share price of the Swedish windpower company Arise indicates a struggling company.
However, the balance sheet is solid after the recent refinancing and the pricing fundamentals have improved significantly this last year, especially since the start of the year. The combination of electricity prices (first graph below) + e-certificate prices (next two graphs) are now consistently above the 500 SEK/MWh range. A level we haven’t seen for the last three years. Finally “in the money”-territory on an allin basis, not just on a cash flow basis as has been the case in recent years. I believe break-even (e-spot + e-certificates) is now around 400 SEK/MWh if we include the recent impairments.
March was particularly cold and was probably an outlier. The price has come down and settled at 400 SEK/MWh for April (still way above previous years: April 2017: 280 SEK/MWh, April 2016: 200 SEK/MWh, April 2015: 240 SEK/MWh).
E-certificate prices have risen sharply in the last few weeks:
Much of this has to do with rising coal prices (and CO2 emission pricing has an impact on this which is why I include a graph of that as well).
The story has changed but the price hasn’t reflected this change, yet!