Photon Energy confirms 2022 forecast after record Q3 results

Amsterdam-based solar power producer Photon Energy NV (WSE:PEN) on Thursday said it booked a third-quarter net profit of EUR 6 million (USD 6m) after losing EUR 1.4 million a year back, thanks to the switching to a merchant approach.

Earlier this year, the Dutch company decided to change the revenue model for some of its solar farms from feed-in tariffs to merchant in a move that led to higher revenues amid the rising electricity prices. In the third quarter of 2022, Photon Energy generated EUR 35.4 million in revenues, or 247.2% more than in the year-ago period, while adjusted earnings before interest, tax, depreciation and amortsiation (EBITDA) jumped by 186.7%.

Revenues from electricity sales amounted to EUR 15.5 million, marking a 136.1% rise in annual terms as power output improved by 6.6%. The business of trading solar modules, inverters and batteries brought in EUR 17.8 million, accounting for a ninefold increase, mainly fuelled by the higher margins connected to the distribution of batteries.

Commenting on what was the strongest quarter for the group so far, CEO Georg Hotar said: “While we have an obligation to remain vigilant to respond to changing business conditions, we believe that our underlying business strengths and our focus on managing for the long term will enable us to continue capturing the strong demand for solar energy and storage.”

At the end of September, Photon Energy had 91.9 MWp of solar farms spread across the Czech Republic, Slovakia, Hungary and Australia, which produced 37 GWh of electricity in the third quarter. The company is currently developing 899 MWp of utility-scale solar PV projects in its Central and Eastern European markets and Australia, it said.

In view of the strong third-quarter results, Photon Energy confirmed its forecast for revenues of EUR 85 million and EBITDA of EUR 24 million in 2022.

(EUR 1.0 = USD 0.998)

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