Polish renewables contractor Onde posts 10% decline in 2022 revenue

Polish contractor Onde SA (WSE:OND) on Thursday reported a 10.2% decline in 2022 group revenue to almost PLN 1.1 billion (USD 255m/EUR 235m), the vast majority of which was generated by the domestic renewables segment.

The division engaged in the construction of renewable energy plants in Poland experienced a 7.4% year-on-year decrease in revenue to PLN 863 million, while the newly-formed segment that builds renewables abroad contributed PLN 11.8 million. On the other hand, the road construction segment generated PLN 212.8 million, down by 23.5%.

The overall top line was affected by a volatile and unpredictable environment in which renewable energy investors refrained from advancing new projects, Onde said.

The company pointed out that the rising costs of materials, labour and financing also had a negative effect on earnings in the construction sector. Onde's consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) in the domestic renewables segment fell to PLN 21.8 million from PLN 60.1 million.

In 2022, ONDE completed 20 onshore wind projects with a total capacity of 916.5 MW. At the same time, it signed contracts for works on wind farms with a generation potential of 422 MW.

In the photovoltaic (PV) segment, the group handed over 26 solar farms totalling 26 MW. The company also concluded contracts for the construction of an additional 80 MW.

In 2022, Onde started looking for opportunities abroad to increase revenues and diversify the business. In September, it began foundation works on a 28-MW wind farm in Lithuania. In February 2023, it signed two more contracts for the construction of an 80-MW wind farm in the same country.

Looking ahead, Onde is focused on developing its own PV and wind projects under the build-an-sell model. As of end-2022, the group's own projects amounted to 788 MW, including 69 MW of wind capacity.

(PLN 10 = USD 2.32/EUR 2.14)

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