Eolus share issue aimed at raising $23m for investment

Eolus Vind will seek to raise SKr158.5m ($23.3m) in new capital through a share issue.

OSLO: A majority of shareholders in the Swedish wind-power developer have guaranteed to support a third of the share issue up to SKr56m. The equity will be used to invest in new wind farms over the next three years. The company's current market capitalisation is SKr767m.

Eolus owns and operates wind farms with a total installed capacity of 23 megawatts (MW) and an annual production of 53 gigawatt hours. It made a profit before taxes of SKr71m from revenues of SKr731m in the year ending 30 September.

The company forecasts it can lift that profit to about SKr90m on turnover of SKr1.4bn in the next 12 months. Its potential onshore project portfolio comprises a total of between two and three gigawatts, and it expects 400MW will be developed in the coming three years.