Soltec reports revenues of 159 Mn euros and net profit of 15 Mn euros in the third quarter of the year

In the consolidated first nine months of the year, the company achieved revenues of 403 million euros and a net profit of 4.5 million euros.

Industrial division achieves record sales and consolidates positive trend with EBITDA margins of +31TP3Q in the third quarter of the year

The project development division reflects a pipeline of 14 GW in eight markets, with 117 MW in operation and 117 MW under construction, and achieved EBITDA of 8 million in the quarter.

The company confirms its guidance for the financial year 2022.

Soltec closed the third quarter of the year with revenues of EUR 159 million, EUR 59 million more than in the same period of the previous year, adjusted EBITDA of EUR 14 million (+EUR 17 million compared to Q3 2021) and net profit of EUR 15 million (EUR 15 million more than in Q3 2021).

For the first nine months of the year as a whole, revenues amounted to EUR 403 million, an increase of EUR 216 million compared to the same period last year. Adjusted EBITDA reached €8.5 million and net income €4.5 million, a significant improvement compared to 2021.

The good results are a consequence of strengthened demand, reduced global disruptions, improved global logistics conditions and the impact of the measures the company implemented to mitigate them.

The company maintains its guidance by the end of the financial year 2022 with a consolidated EBITDA for Soltec Power Holdings of between EUR 15 million and EUR 20 million. In the industrial division, revenues are expected to be in the range of EUR 450 to 550 million and an EBITDA margin of between 21TP3Q and 31TP3Q. In the project development division, Soltec expects to achieve an EBITDA of between EUR 7 million and EUR 11 million.

Operational and financial strength of the industrial business

The industrial division consolidated the trend shown in the second quarter and recorded a strengthened demand with revenues of 158 million euros in the third quarter, and an EBITDA margin of 3% thanks to the measures implemented to mitigate the global disruptions that impacted in previous quarters, as well as the reduction of tensions in the logistics chain.

At the operating level, the industrial division maintains solid operational indicators, with a backlog (signed projects awaiting implementation) which amounts to 308 million (1,537 MW), and which is well diversified geographically in Latin America 51%, North America 26% and Europe 23%.

As for the pipeline (projects that have not yet been signed, with a certain degree of probability of success) stands at 3,669 million euros (25,174 MW) with Europe (46%), Latin America (25%) and North America (15%) as the most relevant markets.

The company has reported a accumulated track record of more than 14 GW by September 2022, having supplied 2.6 GW of solar trackers during the first nine months of the year.

Growth of the pipeline of the project development division

The development division's pipeline totals 13.7 GW of projects at different stages of completion, and it is present in eight countries: Spain, Italy, Denmark, Romania, Brazil, Colombia, the United States and Mexico.

The division shows a very positive evolution and a very balanced and balanced exposure of its project pipeline of 46% in Europe and 54% in the Americas.

At the end of the third quarter, 117 MW were in operation corresponding to two projects in Spain and Brazil.

The company has 112.5 MW under construction in Brazil, corresponding to the Araxá project (Minas Gerais, Brazil), which will be connected to the grid in the short term, and 5 MW in Spain, which will be completed in 2023.

Thanks to the strength and balance of the company's pipeline, Soltec has again partially rotated projects from its portfolio during the third quarter, with the closing of an agreement for the joint development of 340 MW of solar PV projects in Italy with ACEA, thus consolidating its position in the Italian market.

Net financial debt

Soltec reported at 30 September 2022, a gross financial debt of EUR 180 million, mainly associated with the syndicated loan of the industrial division and the project debt linked to the assets under construction in Brazil. Net financial debt stands at 155 million euros.

A competitive advantage: vertical integration

Last May, Soltec Power Holdings presented its 2022-2025 Business Plan, in which it announced the creation of a new business line dedicated to asset management:  Soltec Asset Management.

Through the asset management division the firm expects to derive an additional revenue stream from the sale of energy that provides a recurrence, robustness and stability. It will also allow you to differentiate yourself from your competitors and maximise the value of your projects, and mitigate risks in the value chain through geographic and business diversification.

In the roadmap published for the coming years, Soltec expects to achieve revenues of between 780 and 840 million euros through its three lines of activity (industrial, project development and asset management). The company also aims to achieve an EBITDA in the range of 100-120 Mn euros within the period set out in the Strategic Plan.

This is expected to be achieved thanks to the synergies between the different divisions and the recurrence and solidity provided by vertical integration, as well as the growth prospects for the solar industry over the next 30 years, mainly due to cost competitiveness and public policies to promote renewable energies.