Photon Energy reiterates FY 2024 guidance following strong H1

Amsterdam-based clean power and water sector company Photon Energy NV (WSE:PEN) has reported a 2.6% year-on-year increase in consolidated revenues for the first half of 2024, with EBITDA more than doubling, closing the second quarter confident in its full-year guidance.

Consolidated revenues stood at EUR 41.3 million (USD 46.1m) at the end of the January-June period, compared to EUR 40.2 million a year earlier, on strong expansion in capacity market contracts and the engineering, procurement and construction (EPC) business, Photon Energy said. Earnings before interest, taxes, depreciation and amortisation (EBITDA) surged by 113.8% year-on-year to EUR 6.1 million, driven by the increasing share of high margin businesses -- EPC, demand side response and the sale of electricity.

The half-year earnings before interest and taxes (EBIT) were in the black, at EUR 0.84 million, compared to a negative EUR 1.47 million in the year-ago period. The leaves the accumulated net loss for the first half of the year at EUR 4.1 million, slimming from a loss of EUR 7.4 million in January-June 2023.

Photon’s independent power producer (IPP) portfolio contains 132.8 MWp of operational solar photovoltaic capacity installed in several Central and Eastern European countries and Australia, as of June 30, 2024. The company expects to commission additional 10.7 MWp of solar farms in Romania during the third quarter. Construction works on 18 MWp of ready-to-build projects is also expected to begin then.

Power production during the second quarter rose by 36.8% year-on-year to 56.6 GWh, exceeding the pace of the IPP portfolio expansion, Photon noted. The total half-year power output was 86.8 MWp, up by 31.0% year-on-year.

The full-year guidance provided by Photon in May was kept intact. The company expects revenues to be in the range of EUR 90 million-100 million, with EBITDA reaching a point between EUR 16 million to EUR 18 million.

“Given the seasonality of revenues and the recent recovery of electricity prices and assuming no major changes to the current economic environment and the course of business, the management expects revenues in H2 2024 to be higher than in the reporting period and in line with the full-year guidance,” Photon Energy added.

(EUR 1.0 = USD 1.115)

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