Spain's Soltec returns to profit in 2022

Spanish solar industry player Soltec Power Holdings SA (BME:SOL) said on Tuesday it swung to a net profit in 2022 after posting a loss of EUR 1.2 million (USD 1.28m) in the year-ago period, highlighting strong demand for its solar trackers and measures it took to recover from negative margins.

The annual net profit stood at EUR 13.1 million, with revenues rising by 64% year-on-year to a record EUR 568.2 million, Soltec said.

The company closed the year with adjusted EBITDA of EUR 32.6 million compared to EUR 6.9 million in the red in 2021, the results show. Soltec said it had implemented measures to deal with industry challenges it faced last year and early 2022, such as high inflation, the Covid-19 pandemic-related issues, supply chain disruptions and impaired logistics. It said the measures brought EBITDA margins into the positive territory.

The star of the business was Soltec Industrial, which manufactures and supplies solar PV trackers and provides construction and other related services for solar projects. The division increased solar trackers supply by 11% year-on-year to 3.8 GW in 2022, pulling EUR 586.7 million in revenues. Adjusted EBITDA came at EUR 27.3 million, with EBITDA margin moving from a negative 6.4% in the first quarter to 12.7% in the fourth.

Soltec Development, through which the Soltec group develops solar projects, posted adjusted EBITDA of EUR 6.2 million, down from EUR 9.9 million in 2021. This unit rotated 372 MW of assets and had 117 MW of solar farms in operation at the end of 2022, after having no operating plants a year back.

Last year, the company started a new business line, Soltec Assets, through which it will provide asset management services and solar farm operation. The goal of the business is to have a portfolio of close to 1 GW by 2025.

The Soltec Group added that it expects to reach EBITDA of EUR 45 million to EUR 60 million for the whole of 2023.

(EUR 1.0 = USD 1.068)

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