Welcome to the Eolus audiocast for teleconference Q2 2022. For the first part of the call, all participants will be in listen-only mode, and afterwards there'll be a question-and-answer session. Today, I am pleased to introduce CEO, Per Witalisson, and CFO, Catharina Persson. Speakers, please begin.
Good morning all, and welcome to the Q2 presentation from Eolus. We can start at slide number two. We're summarizing second quarter with a good outcome both financially and with a good progress of the project portfolio. We had net sales of more than SEK 1.4 billion with a net profit of SEK 225 million. This profit is stemming from the sale of the 260 MW Swedish wind project Stor-Skälsjön. Eolus owned 51% of the project and the rest was owned by the minority owner, Hydro. Therefore, SEK 103 million of the net profit is attributable to the shareholders of Eolus.
This was, of course, the major event of the quarter. We also increased our stake in the Fageråsen wind power project to 49%. Late June, we communicated further delays of the Øyfjellet wind project. At the end of the quarter, 68 out of 72 turbines had started to generate electricity. This figure as of today is 71 out of 72. We are approaching completion of the project finally. In the beginning of July, we also secured financing of SEK 1.5 billion from credit facilities from Swedbank and the Swedish Export Credit Corporation. This sum supports us in achieving our goals in the business plan for 2022 to 2024.
We are expanding our project portfolio, and the projects are mainly developing well. The portfolio expanded by 1.5 GW during the second quarter. We are investing heavily in Project Development, and we are recruiting, adding employees. To support this and the goals of the business plan, we are now from September 1st, 2022 also extending the management team of Eolus by adding both Magnus Axelsson and, as communicated earlier, he will be the COO of the company. We're also now adding Heléne Sebrén, who is a head of HR, and Michiel Messing, who is head of delivery and construction.
We had equity to assets ratio of 54% and a strong net cash position of almost SEK 600 million and a total portfolio now of 17.4 GW. We can turn to slide three, the introduction, short introduction to Eolus. Eolus is a developer of renewable energy in the Nordics, in the Baltics, in Poland, and in Southwestern U.S. We've been in business since 1990. We built more than 660 wind turbines and stuff. We are developing projects, taking them through permits, doing optimization, procurement. We sell and we construct on behalf of our customers, and then we can take on technical and commercial asset management services. We have, as of today, contracts for asset management services for about 1.6 GW.
Technology-wise, we're working with onshore wind, offshore wind, solar PV projects, and different kind of energy storage projects. We see in the future that we will see more and more combination of these technologies. We can turn to page number four, please. As I mentioned, the major event of the quarter was the selling of the wind power project Stor-Skälsjön to MEAG. We bought this project back in 2021. We teamed up with the Norwegian Hydro REIN, who invested 49% in the project and provided a good PPA, that is a long-term power purchase agreement, securing revenues and cash flows for the final investor for a long time. When we bought the project, we re-permitted it to allow for larger wind turbines.
We could thereby also reduce the number of turbines and the CapEx for the project while still maintaining the estimated production from the project. During Q2 now, Eolus sold all of our 51% stake of the company. Hydro REIN will stay on with the minority stake of the project with 25%. We will build the Siemens Gamesa turbines with a capacity of 6.6 MW. Construction have started and commissioning is and completion is planned for late autumn 2023. As I mentioned, we have sold the shares of the project company but we will construct the wind farm on behalf of the investors under construction management agreement.
Where we expect remaining revenues for Eolus part of that construction management agreement to be around EUR 20 million spread over the time up until completion late 2023. Eolus will also provide technical and operational and administrative services for the wind farm once it is in operation for a period of 15 years. Approximately SEK 900 million of the net sales of Q2 relates to the sale of the Stor-Skälsjön project. That is of course mainly to the transfer of the shares of the project company. We turn to slide number five, please. In the beginning of July, we increased our stake in the joint project Fageråsen. It's a wind project in price area SE3 in Sweden.
It has been developed over many years by Eolus and the local developer, DalaVind. It is fully permitted, and we're now moving into the phase where we will procure the grid connection, and soon also procure wind turbines and start construction. It's a good cooperation with the local developer and with Eolus skills from construction and operations. We turn to page number six, Øyfjellet. As mentioned, we have, as of today, 71 out of the 72 turbines, commissioned and have started to produce electricity. There is an intensive work ongoing with commissioning of the remaining wind turbines.
When it comes to the net sales of SEK 1.4 billion in the quarter, roughly SEK 900 million relates to the Stor-Skälsjön project. Most of the rest is related to the Øyfjellet project, but with a low margin. We move on to slide number seven, showing our projects that are under construction. We've already mentioned Øyfjellet and Stor-Skälsjön. We also have package number two, which is Rosenskog, Tjärnäs, Skallberget, Utterberget, all of them being wind power projects in Sweden, SE3, where we have started construction, roads and foundation works have started. Sales process is ongoing, and we expect to complete that during the autumn.
We have also the small Timmele project in also in SE3 with two turbines. If we turn to page number eight, it the slide shows our publicly communicated late-stage projects. This is what you can expect from Eolus mid-term. We update the list each quarter, and we communicate about the projects on our website. New from last quarter is that number two, Fågelås, and number four, Ölme have gained legal force permits. We are in the phase of securing the grid connection, and will then be ready to start to procure turbines and balance of plant works, and then start the sales phase of the projects.
Number nine, Pienava in Latvia have advanced. We have erected a met mast and we have acquired land for the substation to connect the project to the grid. Centennial Flats, the large American solar and battery storage project with a size of roughly 500 MW solar PV and up to 250 MW battery energy storage, has moved into sales phase. It is permitted and we intend to sell the shares of the project company and to enter into a development services agreement with the buyer.
It is, of course, a really large investment and it is probably one of the largest solar PV projects in the world. Turning to slide number nine, it shows our total portfolio, which has increased by 1.5 GW during the quarter. At the upper left you see the portfolio split by technology, onshore wind, offshore wind, solar PV, and energy storage. Notably, is that now more than 50% relates to other technologies than onshore wind. We have added an offshore Swedish offshore wind project, Najaderna, during the quarter. The idea is to have a balanced portfolio of projects that can be realized in near term and to continuously add good projects to the portfolio.
Offshore projects takes longer time to develop, of course, very capital intensive. Solar projects are in general quicker to develop compared to onshore wind. We have now more than 1/3 of our projects in the U.S. market, and we've been active in that market since 2015. We have so far done two transactions and constructed one wind farm in the U.S. and the portfolio is maturing with good progress.
During the summer, new legislation has been passed by the United States Congress fighting inflation and with a program to give federal support to massively increase the support for renewable energy in the country and fighting climate change and provide clean energy at affordable prices for consumers and industry of the country. We see a significant increased interest for our projects in the U.S. At the bottom you can see the portfolio split by market technology and maturity. We turn to page number 10. At the end of the Q2 report, we are giving some extra light to our solar power development activities within Eolus.
As of today, we have a total portfolio of 3.1 GW, where half of it stems from the southwestern US states. I've already mentioned the large Centennial Flats project in Arizona. We're also having the quickly increasing portfolio in Poland where we now have reached more than 400 MW in just over a year. It is based on both greenfield development and partnerships with local solar power developers. In Sweden we've now increased the portfolio to 600 MW, and we have handed in several permit applications submitted for projects in the Q2, and we expect them to be permitted quite quickly. Okay. I'll hand over to our CFO, Catharina Persson, for presentation of the financial figures.
Thank you, Per, and hi, everyone. I will go through the financial information for the second quarter 2022, and also highlight some of the figures, and I start on slide 11. Net sales was SEK 1,448 million, and in comparison with the same period last year, the net sales has increased by SEK 775 million. Most significant event during the second quarter is that Eolus handed over all of the shares totaling of 51% of Stor-Skälsjön project to MEAG for a consideration of EUR 80 million. Hydro REIN has sold 24% of the shares to MEAG and remains as the 25% shareholder. Stor-Skälsjön project has, during the time Eolus has owned it, been fully consolidated into Eolus.
Therefore, the total revenue and profit is recognized for 100% in Eolus, and 49% of that profit is related to minority stakeholders. You can find in Eolus income statement, on the line whereof related to minority shareholders. The amount referring to the minority stakeholder amounts to SEK 172 million in the second quarter. Eolus and Hydro REIN are jointly constructing the wind farm on behalf of the investors, and this will be recognized as revenue during the time for construction in accordance with the percentage of completion method. Income from the construction and management agreement is estimated to total EUR 42 million and will be allocated between Eolus with 51% and Hydro REIN, 49%. Eolus has in the second quarter recognized revenue and profit relating to this agreement.
The degree of completion in June was 18%, and the wind farm is estimated to be completed later in 2023. Revenue recognition from Øyfjellet is also included in the second quarter according to the current degree of completion, and that amount is 12% for the quarter. At end of June, 68 turbines of the total 72 had generated first electricity production. However, as Per mentioned, the degree of completion is lower than we expected. Eolus has also communicated that the project is further delayed. Total degree of the completion amounts to 88% for the total project. Eolus operating profit was SEK 220 million , and that's compared to SEK 8 million at second quarter last year. Our other external costs for Eolus are increasing and also expenses for employees.
They're higher than, but in line with our expectations. Eolus expansion is continuing, and we will have more new colleagues joining us before end of 2022. Net financial items for the second quarter was SEK 1 million, and the same period last year was -SEK 12 million. Net profit for the period for the second quarter was SEK 222 million, whereof SEK 103 million is related to Eolus shareholders and SEK 122 million to minority stakeholders. If we turn to slide 12, we have the balance sheet for Eolus group. We have total fixed assets amount to SEK 133 million end of June, and our standard interest in Fageråsen is included and also deferred tax referring to acquisition of projects in development.
We have inventory work in progress, SEK 494 million and also advanced payments to suppliers, SEK 143 million. Cash amounts to SEK 928 million end of June, and that's compared to SEK 765 million last year end of June. The higher cash amount this year is mainly related to the handover of Stor-Skälsjön. We have total assets that amount to SEK 1,844 million, and that's almost the same as end of June 2025. We have total equity of SEK 1 billion, whereof equity of SEK 57 million is related to minority stakeholders. Interest-bearing liabilities, SEK 330 million, and that's compared to SEK 203 million last year.
If we go to page 13. We have net sales for the quarter divided into Eolus' two segments. Net sales for Project Development, SEK 1,441 million and operating profit SEK 250 million. We also have net sales for Asset Management and SEK 8 million with an operating profit of SEK 2 million. We have profit per share for second quarter, SEK 4.12 related to Eolus shareholders. We have equity per share about SEK 38 compared to SEK 39 for the second quarter last year. We still have a strong cash position with the net cash position of SEK 598 million. For the financial year 2021, the dividend was SEK 1.50 per share, and that corresponds to an unchanged level considering that the previous year compared to 50%.
The dividend was paid to the shareholders, May 27th, 2022. The expansion of Eolus is still ongoing, and we are continuously ramping up the numbers of employees to match our targets in our business plan for 2023 - 2024. Average number of employees for the second quarter is 65-67. We have order backlog about SEK 700 million , and the sum of the order backlog is lower since the contract with suppliers to construct Stor-Skälsjön Wind Farm are signed directly by the project company. This structure of the transaction of Stor-Skälsjön means that no cost of goods will be recognized in Eolus income statement. The remainder of Eolus estimated revenues from Stor-Skälsjön is related to the construction management agreement. We have asset management assignments of 912 MW.
Eolus has a strong balance sheet with equity asset ratio of 54%, and this means that they have a strong foundation for the future. We can go to page 14, where you can find projects under construction. Also on the right side of the page, you have the degree of completion. We have 786 MW, including 100% of Stor-Skälsjön, under construction end of June. Only project Øyfjellet and Stor-Skälsjön had a degree of completion. Revenue recognition for the rest of the projects under construction will start when agreements with customers are signed and when predefined construction milestones are achieved. I hand over to Per again.
Thank you, Catharina. We can sum up page 15. Most of the points have been mentioned already. The only item we haven't mentioned is that we opened a new office in Malmö in May we are recruiting a lot and expanding our employee base in Malmö. Currently we have 35 employees in Malmö. As mentioned, we are expanding the management team from first of September. We can turn to page 16, and I just want to thank you for listening in, and we're opening up for questions.
Thank you. If you'd like to ask a question, please dial zero one on your cellphone keypad now to enter the queue. Once your name has been announced, you can ask your question. If you find your question has been answered before it's your turn to speak, you can dial zero two to cancel. Our first question comes from Olof Söderholm of ABG Sundal Collier. Please go ahead. Your line is open.
Hello, Per and Catharina. I have a couple of questions. First, just if we start with Øyfjellet, I mean, you have a great quarter in Q2, but I just want to speak very briefly about Øyfjellet as well. So your 71 out of 72 turbines are running. Does that make you comfortable you will complete this during Q3 or are there still other hurdles in there that could maybe delay this further into Q4?
We haven't communicated a new estimated date for the takeover. We have done that a couple of times, and unfortunately had to move that further, so we've decided not to do that. We're at a high degree of completion, and a lot of resources and efforts are all made to complete it as soon as possible.
Okay. Just so maybe I can ask a follow-up. We'll see if you can answer this one. Generally, in a project when you're very close to 100% electricity generation out of the turbines, are there generally other what else do you have to do in order to finish a project?
To have all turbines producing continuously, steadily, they should pass test on completion with some technical requirements. That has definitely taken longer time and takes still longer time at Utterberget compared to all other projects that we have built so far.
I have a question on the projects that you have out for sale or in sales processes right now. The Rosenskog, Tjärnäs, Skallberget, Utterberget project, is that marketed as one project, or are you marketing that as separate projects? I think you said you expected to sell it during the autumn, but you know, is that fully permitted on turbines, et cetera?
Yes. We are marketing as a bundle of the projects. We could split them if that would give us the best outcome. Yes, we definitely expect to sell them all during the autumn.
Excellent. The Centennial Flats, I mean, super interesting. It's a big project as well. I think before you said you were hoping to sell this during 2022. Maybe you mentioned this still in the report. I didn't see it, but are you still expecting to sell it during 2022?
Yes. We say in the full report that it is in the sales phase. We hope to be able to sell it during this year.
Yeah. Yeah, I think. Yeah. No, I think that's it for me. Thank you very much. Appreciate it.
Thank you.
Thank you. We currently have one further question in the queue. So just as a reminder to participants, if you do wish to ask a question, please dial zero one now. That next question comes from the line of Ørjan Oden of Penser Bank. Please go ahead. Your line is open.
Hi, everyone. I have one question about the transaction price on Stor-Skälsjön. Do you think that is a kind of fair level of market pricing right now for this size of projects, or was it exceptionally good for one reason or another? Thank you.
All projects are different and have to be evaluated at its own merits. What was really good and this was definitely a good price. We think it's in line with the other recent transactions in the market and in the area. The optimization of the project where we could reduce the number of turbines and keep up the production was really of big importance to support the strong same figure. Also the PPA that Hydro REIN could provide long-term PPA for that secure stable cash flow for the investor.
Okay. I interpret that as a fairly good relative in relative sense price project then.
Yes. Yes, I would say that. It's important to bear in mind what Catharina said about risk levels for this project and for further projects and that all construction contracts are signed directly in the project company that we have sold. That we will not have any gross sales values in the profit and loss sheet of the Eolus. We'll have revenues going forward from the services we are providing and with them with a high expected high margin.
Okay. Thank you very much.
Thanks.
Thank you. There are currently no further questions from the phones at this time.
Okay. We wish to thank you all for listening in to the presentation and wish you all a nice day. Thank you. Bye.