Enersense International: Renewed service contract represents 6% of annual revenues - Nordea

Enersense has extended its telecom network service contract, including construction services, with Telia Finland. Renewed 3-year contract will add EUR 70m to the company’s order book in Q4 2024. Without possible divestments, this contract with Telia Finland represents some 6% of annual revenues we calculate. Risks related to declining order book are decreasing but the order book could still be down in Q4 y/y. Overall, the company's focus on profitability, cash flow and safeguarding its core service operations has started well. The company even upgraded its 2024 net sales guidance midpoint by 5% on December 4. Enersense renewed its strategy in June and could also divest its three business areas, but there are no new information regarding possible divestments. We believe a divestment of the wind power development portfolio could still happen in near future.