Solarpack Grows Revenues and Profits in the First Quarter of 2020

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• Achieves a first-quarter 2020 operating income of €35.0m, up 179% on the first quarter of 2019, with EBITDA of €18.9m (up 318% on Q1 2019) and net income of €6.5m, compared to the €0.2m net loss of the first quarter last year

• Adapts positively to COVID-19, prioritizing employees’ safety, keeping all solar plants operating and delivering energy, and maintaining operational activity

• Partners with Ardian in the Tacna and Panamericana projects in Peru and meets important acceptance milestones for recently built plants, reinforcing the company’s liquidity position

• Starts building 12 MW in Chile, bringing the total portfolio of projects under construction to 239 MW

The Getxo-based multinational, specialized in solar photovoltaic energy, shows solid results in the first quarter of 2020, reflecting intense construction activity and the contribution of new megawatts brought into service by the Power Generation (POWGEN) unit in Spain, Chile and India during 2019 and the start of 2020.

The company is rapidly adapting to the situation caused by COVID-19, keeping all its plants in operation and generating energy, continuing ongoing construction work and maintaining development activities despite restrictions on mobility in the majority of the markets in which it operates. It expects an impact on electricity sales in Spain and Chile this year due to the short-term reduction of spot prices in these markets, and thanks to its limited exposure to this, with most revenues contracted on a long-term basis, it maintains the guidelines given to the market in February 2020 although pointing to the low end of the EBITDA range. Similarly, the company expects delays in electricity contract bids and in the issuance of permits for some projects under development, which could delay the start of future constructions by
approximately two months. Nevertheless, the company does not foresee any long-term changes to solar PV fundamentals in terms of competitiveness, versatility and speed of deployment.

Since the last results presentation, Solarpack has concluded the entrance of Ardian as a minority partner in the Tacna and Panamericana projects, located in the south of Peru. This important milestone, along with the completion of acceptance tests of various projects commissioned in 2019 and early 2020, reinforces Solarpack’s liquidity position in the execution of its business plan.

From an operating perspective, its development and construction (DEVCON) teams have started building an additional 12 MW project in Chile, taking the total portfolio of projects under construction to 239 MW. Likewise, it continues with development activity in all the regions in which it operates, with the aim of originating new order intake to add to the 126 MW that the company already has in its backlog of contracted projects.

Thus, the DEVCON segment has achieved revenues of €21.4m and EBITDA of €4.1m in the first quarter of 2020, compared to €8.4m and €(0.6)m, respectively, in the first quarter of 2019.

In its POWGEN segment, Solarpack has added €14.5m in revenues (103% more than Q1 2019) and an EBITDA of €12.9m (105% more than Q1 2019) over the first three months of 2020, highlighting the important contribution being made by energy sales from the 288 MW of ‘build and own’ projects recently commissioned in Spain, Chile and India and the assets acquired in Peru at the end of 2019

The services (SVCS) segment has totaled first-quarter 2020 revenues of €2.2m (90% more than Q1 2019) and an EBITDA of €0.4m (34% more than Q1 2019), thanks to new contracts related to the commissioning of projects built in 2019. As of March 31, 2020, this business unit was providing operations and maintenance services to 499 MW. It was also carrying out asset management for 583 MW of own and third-party capacity.

The company’s net profit has grown significantly to €6.5m, with profitable growth remaining a strategic pillar for the business. This net profit is €6.7m higher than that of the first quarter of 2019, due mainly to an increased contribution from energy generation and a growth in Build&Sell construction activity compared to the first quarter of 2019.

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