Photon sees better Q1 returns on switch to merchant solar

Fertod II solar parks in Hungary. Image by Photon Energy (www.photonenergy.com)

Amsterdam-based solar and water solutions company Photon Energy NV (WSE:PEN) was able to reduce its first-quarter net loss to EUR 1.49 million (USD 1.55m) in 2022 from EUR 3.17 million in the red a year earlier thanks to a huge boost in revenues and EBITDA.

The multinational on Wednesday reported quarterly revenues of EUR 9.14 million, up by 99.9% year-on-year, and a 811.7% jump in consolidated EBITDA to EUR 2.02 million. Its EBIT was transformed from a EUR-1.48-million loss in the first quarter last year to a positive EUR 0.53 million in this trimester.

The results came mainly on the back of higher revenues gathered by 16 MWp of new grid-connected merchant solar plants, and high electricity prices on the market-linked direct sales component of Czech Republic’s “green bonus” support scheme, which Photon started using for its local portfolio since early this year, the company said.

Photon also made the decision to temporarily switch 43.5 MWp of its solar farms Hungary to a merchant model, expecting the move to produce more revenues on rising electricity prices globally. Starting in April 2022, these power plants no longer benefit from government subsidies, Photon said.

“We have been very proud to see our strategy crystalise with these strong Q1 figures. The expansion of our proprietary portfolio and the shift from feed-in-tariffs to entering the electricity market on a merchant basis will create significant new market opportunities for us,” said Photon Energy Group CEO Georg Hotar.

Based on strong quarterly results, the company confirmed its guidance for 2022, expecting a 78.8% year-on-year revenue growth to EUR 65.0 million and EBITDA increasing by 87.8% to EUR 18.0 million.

At the end of March 2022, Photon had 90.5 MWp of operating solar farms in the Czech Republic, Slovakia, Hungary and Australia. After the reporting period, the company grid-connected a 1.4 MWp solar farm in Hungary.

(EUR 1.0 = USD 1.043)

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