Amsterdam – 19 November 2024 – Photon Energy N.V. (WSE: PEN, “Photon Energy Group”, the “Group” or the “Company”) announces financial results for the first three quarters of 2024.
“The financial results for the first nine months of this year confirm the recovery of the business and its ability to generate attractive growth. Electricity production has significantly increased due to the expansion of capacity, which has led to higher revenues from electricity sales. Our strategic focus on higher-margin activities and balancing the production portfolio towards a more stable revenue model has resulted in a substantial improvement in profitability and margins. As a result, EBITDA for the first nine months of 2024 showed a more than twofold increase compared to last year,” said Georg Hotar, CEO of Photon Energy Group.
“In addition to strong financial performance, we have made significant operational progress. We have increased our energy generation capacity and commenced the construction of new photovoltaic projects. We successfully launched our first solar power plant in Hungary under an on-site PPA agreement. Advanced negotiations are also underway for another PPA agreement with a reputable client. At the same time, revenues from the construction of power plants for industrial and commercial clients are growing, supported by increasing demand and positive feedback from our existing customers. However, due to the recent regulatory changes and outlook for the remainder of the year, we have decided to revise downward our EBITDA forecast for 2024,” added Georg Hotar.
First Three Quarters of 2024 and Recent Operational Highlights
- Strong electricity generation of 142.1 GWh YTD (+ 23.2% YoY) and 55.3 GWh in Q3 2024 (+12.2% YoY) on the back of capacity increase
- Commissioning of 8.2 MWp of new assets in Romania in Q3 2024, bringing the IPP portfolio up to 141 MWp; 3.2 MWp connected in Q4 2024 and 5.1 MWp of PV projects under construction in Hungary
- Sale of two operating solar power plants with a combined capacity of 14.5 MWp and a hybrid development-stage solar / battery project (8.2 MWp / 10.9 MWh) in Australia; expected net cash proceeds of EUR 5.7 million in Q4 2024
- Commissioning of a 658 kWp solar (PV) power plant, built on our client’s premises; our first to include a 20-year power purchase agreement (PPA)
- Becoming the first energy aggregator listed by the Energy Regulatory Office in Poland; aggregation of electricity, system services and flexibility services across all major Polish power grid operators is set to begin in December 2024
Financial Indicators
In 9M 2024, consolidated revenues amounted to EUR 64.141 million, compared to EUR 59.456 million in the same period last year, reflecting a 7.9% year-on-year increase.
Revenues from electricity generation reached EUR 21.331 million, marking a 14.3% year-on-year growth. This increase resulted from a combination of a 23.2% year-on-year rise in electricity generation, partially offset by lower realised electricity prices of EUR 158/MWh in 9M 2024, compared to EUR 168/MWh in 9M 2023, a decrease of 5.7%.
Other revenues (from capacity market contracts and the EPC segment) also increased to EUR 42.810 million in 9M 2024, up by 4.9% YoY. On a quarterly basis, the expansion of other revenues was more pronounced, with revenues reaching EUR 13.816 million in Q3 2024, representing a 16.0% increase year-over-year.
The consolidated EBITDA of EUR 9.857 million for 9M 2024, more than doubled year-over-year compared to EUR 4.750 million in 9M 2023. In Q3 2024 the EBITDA was EUR 3.800 million compared to EUR 1.917 million in Q3 2023. This substantial growth underscores the positive impact of the strategic shift in the Group’s business model towards more profitable segments.
Consolidated EBIT of EUR 1.227 million in 9M 2024, materially improved compared to EUR -2.515 million a year earlier. In Q3 2024 EBIT was EUR 0.384 million, a significant improvement compared to EUR -1.046 million in Q3 2023.
The Group recorded a net loss of EUR -7.068 million in 9M 2024 (compared to a net loss of EUR -9.595 million in 9M 2023) and EUR -2.959 million in Q3 2024 (compared to a net loss of EUR -2.150 million in Q3 2023).
The report for the first three quarters of 2024 is available here.
Outlook
According to the guidance published on 16 May 2024, consolidated revenues for 2024 were expected to reach EUR 90-100 million, and EBITDA EUR 16-18 million. After the guidance revision, the Company now expects the revenues to amount to approximately EUR 90 million, while full-year 2024 EBITDA is now anticipated to amount to EUR 10 million, reflecting the impact of regulatory changes on electricity generation and the capacity market as well as lower profits from engineering and PV technology trading.
First Three Quarters of 2024 Results Presentation
The Company will host a video conference on Tuesday, 19 November at 11:00 a.m. CET. The results will be presented in the first half of the conference, followed by a question-and-answer session. Participants are asked to send questions during the session via the chat function or in advance via email to ir@photonenergy.com.
Webcast: https://tailorsgroup.clickmeeting.com/photon-energy-q3-2024-results-presentation
About Photon Energy Group – photonenergy.com
Photon Energy Group delivers solar energy and clean water solutions around the world. Its solar power services are provided by Photon Energy; since its foundation in 2008, Photon Energy has built and commissioned solar power plants with a combined capacity of over 180 MWp and has power plants with a combined capacity of 141 MWp in its proprietary portfolio. It is currently developing projects with a combined capacity of 1 GWp in Australia, Hungary, Poland, Romania, and South Africa and provides operations and maintenance services for 890 MWp worldwide. Through its fully owned subsidiary Lerta, the Group has electricity trading licenses in Poland, the Czech Republic, Slovakia, Hungary, Romania and Serbia. Lerta is the third largest provider of DSR services to the Polish TSO with a contracted capacity of 385 MW for 2024, and through its Virtual Power Plant (VPP) aggregates energy generators and consumers with a total capacity of over 480 MW. The Group’s other major business line, Photon Water, provides clean water solutions including treatment and remediation services, as well as the development and management of wells and other water resources. Photon Energy N.V., the holding company for Photon Energy Group, is listed on the Warsaw, Prague and Frankfurt Stock Exchanges, as well as XETRA, Germany’s leading online trading platform. Photon Energy Group is headquartered in Amsterdam, with offices in Australia and across Europe.
