Solarparken 2015 Results

German Operator Of PV Farms Exceeds Guidance
07:34 PM (Beijing Time) - 25. April 2016
n_bus_financials_Solarparken 2015_Graph_ab 2016-04-25

Independent power producer 7C Solarparken has exceeded the higher end of its 2015 revenue guidance (€22.6 to €23.2 million) by over 9%, achieving a revenue of €25.4 million, which is a 74% YoY increase.

Key Takeaways

  • As Solarparken exceeded its guidance for 2015,  revenue increased by 74% to €25.4 million in 2015
  • Annual production of Solarparken’s PV parks improved from 46.3 GWh in 2014 to 74.7 GWh last year
  • The solar IPP is targeting to reduce its net debt of €154.2 million to €150 million in 2016 and maintain the same through 2017
  • For the current financial year, the management expects to increase revenues to “at least” €28.8 million, Clean EBITDA coming to at “at least” €23.7 million, and net cash flow of “at least” €18.2 million

The year 2015 ended on a good note for 7C Solarparken – with the PV power plant operator exceeding most of the guidance it provided for 2015. Last year, it had guided its cash flow per share (CFPS) to be between €0.37 to €0.39, but Solarparken managed to reach €0.41, which is closer to its 2016 goal of €0.42. Now, it has increased the 2016 CFPS figure to €0.43.

In the full year results, published on April 21, 2016, the independent power producer (IPP) revealed it had exceeded the higher end of its revenue guidance (€22.6 to €23.2 million) by over 9%, achieving a revenue of €25.4 million, which is a 74% YoY increase.

Higher power output

Headquartered in Germany, with around 96% of its portfolio located at its home turf, Solarparken also has some assets in neighbouring European nations of Belgium and Italy. The PV farms owner and operator reported an increase in solar power generation by 61.3% over 2014. In 2015, total electricity production was 74.7 GWh, compared to 46.3 GWh generated the year before. “Our portfolio enjoyed an irradiation of 3.9% above long-term average,” Solarparketn said, which was one reason for the larger turnover in 2015

Post commissioning its 2 MW Fahrenholz plant in March, Solarparken has now a total IPP portfolio of 85 MW.

Effort to reduce net debt by over 2%

In 2014, Solarparken’s net debt was €132.1 million, and it ended 2015 with €154.2 million, up by 16.7%. In 2016, it aims to reduce the debt down by 2.73% to €150 million. The presentation stated, “New-build projects of 9 MW are assumed in the planning and therefore also in the net debt guidance, but they will contribute only for a small extent to EBITDA ’16 given planned construction in H2’16.” The net debt should stay at the same level in 2017.

Further growth in 2016

For the current financial year, the management expects to increase revenues to “at least” €28.8 million, Clean EBITDA coming to at “at least” €23.7 million, and net cash flow of “at least” €18.2 million.

Maintenance and optimization work at its German parks in Kissing (2.4 MW) and Wiesenbach (1.8 MW) will lead to outages of €0.2 million EBITDA in the second quarter of the year, while full benefits of the upgrade will reflect from June 2016 onwards. The company had carried out cleaning in the Kissing Plant in the first quarter of the year. Simultaneously, Solarparken hinted at an EBITDA shortfall of €0.6 million in the first quarter of 2016 due to seasonality of the business. This would translate into 2% shortfall in annual revenue.

According to Solarparken management, “Acquisition of existing parks (is) not assumed in the plan 2016, although management is confident to capture further growth before year-end.” The company intends to add new plants in 2017.

Three pillar strategy toward 105 MW

Solarparken aims to achieve a cash flow per share of €0.50 by 2017, bringing its net debt/EBITDA below 6.0x, at the same time, build up and finance PV portfolio expansion towards 105 MW, and optimize and/or re-finance acquired assets. The last three is what it calls its three pillar strategy to drive cash flows from 2015-17.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani