The major highlight for Photon Energy NV in 2015 was its switch to a positive EBIT. This helped it 'reduce' the loss after taxes by two thirds and made it the year with best results in its 5-year history. Nevertheless, the main business generator for the Holland-registered PV project developer seems to be its operations and maintenance division (O&M).
The annual report stated, "The results of this period show the success of our efforts to turn the company from a company that was dependent on Feed-in-Tariffs to a company that is generating its results from several sources aside."
Revenue up, operating profit up, grow profit down
Solar power solutions company Photon Energy reported over 13% improvement in its 2015 revenue of €13.3 million, up from €11.7 million in the year before. Though the gross profit slightly dropped 2.2% from the previous year's figure of €10.3 million to €10.1 million in 2015, its EBIT turned positive to €1.1 million from a negative €0.924 million YoY, and EBITDA rose 75.8% to €6.14 million. It also managed to reduce its net debt to €5.61 million, down 7.5% over €6.07 million in 2014.
Last year, Photon Energy sold its two Italian power plants (1.25 MW) and the remaining commercial-scale rooftop power plants in Germany (230 kW). Now, the company has 26 MW capacity left in Germany. But Photon Energy also continued to build new power plants – in Australia it reached 1 MW capacity in 2015 as three power plants were commissioned or commenced construction.
Focus on O&M
The management stated that its O&M division substantially increased the customer base. It added over 35 MW capacity through new contracts in Czech Republic, Slovakia and Romania.
Going forward, the company plans to expand in markets that have already reached grid parity and depending on its O&M division, which is supposed to steer the company's revenue stability. Photon Energy plans to continue to provide and expand its O&M and inverter service business to its clients in Europe and the Australian markets. CEO Georg Hotar said, "We see huge opportunities in Europe, where the ownership of PV power plants is less fragmented, which in turn enhances the conditions for our subsidiary Photon Energy Operations." It is also pushing for the development of its off-grid solutions, which includes hybrid power plants along with off-grid applications.
Plans to stay profitable
Director Michael Gartner noted, "Even though the project business is affected by the success of individual projects, we believe that we will keep our profitability due to the revenue mix from electricity production, recurring revenues from the operations and maintenance business, revenues from EPC business and trading activities."
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