Reading Time: 4 minutes
• Completes first half of 2020 with operating income of €78.8 million, 191% higher than the first half of 2019, plus an EBITDA of €31.9 million (226% above H1 2019) and a net profit of €4.8 million, compared to €0.6 million in the first half of last year
• Increases backlog of contracted projects to 513 MW, after being awarded the Gorbea project in India at the end of last June
• Closes refinancing of senior Spanish projects, creating value through longer tenors and lower financing costs and freeing up €26 million in free cashflow to continue supporting the profitable growth of the company
• Completes construction of 150 MW in Spain and begins work on another 10 MW in Chile
The Getxo-based solar photovoltaic (PV) multinational Solarpack has posted solid results for the first half of 2020, reflecting an intensive level of construction activity for third parties and the contribution of the new capacity commissioned during 2019 and at the start of 2020 in Spain, Chile and India to the Power Generation (POWGEN) unit.
From an operational point of view, its business development teams have managed to increase the backlog of contracted projects to 513 MW, after being awarded a 25-year PPA with Solar Energy Corporation of India (SECI) for the 397 MW Gorbea project in India. Furthermore, its construction teams have started work on 10 MW in Chile and have finished the construction of 150 MW for third parties in Spain. Similarly, the company continues to strongly push development work in all the regions it operates
in, increasing its pipeline to 871 MW and preparing for the execution of the backlog.
As a result, its Development and Construction (DEVCON) segment achieved revenues of €48.9 million and an EBITDA of €4.8 million in the first half year of 2020, compared to the €77.4 million and €7.3 million, respectively, registered in the first half of 2019. The first half of 2020 has seen high levels of ‘build and sell’ construction activity for third parties.
In its Power Generation (POWGEN) segment, in the first half of 2020 Solarpack has had revenues of €28.3 million (+101% versus H1 2019) and an EBITDA of €25 million (+103% versus H1 2019), highlighting the important contribution of energy sales from the commissioning of 288 MW of build-andown projects in Spain, Chile and India and from the assets acquired in Peru at the end of 2019.
Elsewhere, Solarpack has completed the refinancing of its oldest Spanish projects, creating value for the POWGEN unit through longer tenors and lower financing costs and freeing up €26 million in free cashflow to continue supporting the profitable growth of the company through new projects.
The Services (SVCS) segment ended the first half of 2020 with revenues of €3.8 million (+60% versus H1 2019) and an EBITDA of €0.5 million (-41% versus H1 2019), reflecting the entry of new contracts linked to the operation of projects built during 2019 and of higher costs related to the commissioning of the projects. As of June 30, 2020, this 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 assets.
The company’s net profit has grown to €4.8 million in the first half of 2020, with profitable growth always present as a strategic pillar of the business. This net profit is €4.2 million above that of the first half of 2019, due mainly to a higher level of energy generation business compared to the first half of 2019.
The company continues to maintain its activity and growth despite COVID-19, albeit with some negative impact on electricity sale revenues in Spain and Chile due to the reduction of spot prices and adverse exchange rates in those markets. Similarly, in spite of delays to some electricity sales contract bidding processes and to obtaining permits for some of the projects under development, Solarpack is managing to maintain a high level of development activity, as demonstrated by the Gorbea project in India. The current situation regarding COVID-19 restrictions could delay future construction by approximately two or three months. Even so, the company sees no change to the long-term fundamentals of solar photovoltaic energy as they relate to its competitiveness, versatility and speed of deployment.