DGAP-News: Photon Energy Group Reports Record Second Quarter Results and Raises Its 2022 Financial Guidance

Issuer: Photon Energy NV

/ Key word(s): Quarter Results

Photon Energy Group Reports Record Second Quarter Results and Raises Its 2022 Financial Guidance

11.08.2022 / 08:07
The issuer is solely responsible for the content of this announcement.

Photon Energy Group Reports Record Second Quarter Results and Raises Its 2022 Financial Guidance
 

  • In the second quarter of 2022 the Company more than doubled its revenue to EUR 23.229 million (up 135.7% YoY) leading to a record consolidated Q2 EBITDA of EUR 8.119 million (up 108.3% YoY).
  • In the first half of 2022, revenues rose to EUR 32.367 million (up 124.4%), while EBITDA grew by an outstanding 146.2% to EUR 10.143 million. The Group reports positive pre-tax and after-tax profit in both Q2 and H1 2022.
  • Driven by the great momentum in direct electricity sales into the market, the Company has raised its full-year 2022 guidance with revenue expectations of EUR 85 million from the previously communicated EUR 65 million (up 133.8% YoY) and an EBITDA of EUR 24 million from the previous EUR 18 million (up 150.4% YoY).

Amsterdam 11 August 2022 Photon Energy N.V. (WSE&PSE: PEN, FSX: A1T9KW) (Photon Energy Group or the Company) today announced unaudited financial results for the second quarter of 2022 and first half year 2022, ending on 30 June 2022, posting more than doubled Q2 revenues of EUR 23.229 million (+135.7% YoY) and an all-time record Q2 EBITDA of EUR 8.119 million (+108.3%).

Turning around our profit after tax, we are very proud to have delivered solid second quarter results for 2022. These were primarily driven by the shift of 83% of our IPP portfolio from feed-in-tariffs to the sale of electricity directly to the market. In addition, we recorded dynamic growth in our other business lines, such as PV component trading, which we are realising across our key markets and beyond. Based on the energy market outlook and in the absence of unforeseen events, we are increasing our full-year 2022 revenue expectations from the previously communicated EUR 65 million to EUR 85 million and EBITDA from the previous EUR 18 million to EUR 24 million, commented Georg Hotar, CEO of Photon Energy Group.

Q2 and H1 2022 Highlights

In the first half of the year, the Company demonstrated its ability to rapidly adjust to changing market conditions by deciding to temporarily switch most of its Hungarian power plants to a merchant model, selling clean energy directly on the market without any state support. As a result, revenues from the sale of electricity generated by the Groups growing portfolio benefited from the high electricity prices experienced globally.

Selling electricity to the market is now a core part of the Companys business strategy, with 83% of its total proprietary portfolio now operating on a merchant basis. There were also increases in other revenue streams, mainly driven by the great momentum in the Groups PV component trading business, distributing modules, inverters and batteries.

On the project development side, the Company commissioned a 1.4 MWp power plant in Hungary, bringing its proprietary portfolio to 91.9 MWp, and is progressing well with the construction of its first five power plants in Romania. The Companys first project in the country, where it plans to build 32 MWp by the end of the year, is starting to take shape as it has just completed the sub-structure and installed half of the total 10,600 solar panels. The Company is currently developing utility-scale PV projects with a combined capacity of over 825 MWp in its key CEE markets and Australia.

As for the Companys presence on capital markets, the second quarter of 2022 has been an exciting period, with the tap of its Green EUR Bond 2021/2027 by EUR 10 million and three buy recommendations for its shares from research houses AlsterResearch (Germany), WOOD & Company (Czech Republic) and IPOPEMA (Poland), respectively.

Financial Metrics

The Groups 2022 second quarter results demonstrated exciting progress with consolidated revenues of EUR 23.229 million (+135.7% YOY), and EUR 32.367 million YTD (+124.4% YOY) for the first half of the year. This increase in revenues is primarily attributable to higher revenues from the production of electricity generated by the Companys new power plants operating on a merchant basis, as well as the high electricity prices on the market-linked direct sales component of the Green Bonus support scheme, which the Czech portfolio switched into at the beginning of the year.

The Company also took important steps to underpin the growth of its business, including the decision to temporarily switch most of the Groups Hungarian IPP portfolio to a merchant model, representing 46.2 MWp of the Companys total 51.8 MWp Hungarian portfolio. Since April 2022, these power plants have not been dependent upon any kind of support mechanism. As a result, the Company saw revenues from the sale of electricity generated by the Groups growing portfolio benefit from rising electricity prices globally.

Besides the outstanding revenue from electricity production of EUR 10.963 million (+59.2% YOY), this strong outcome was driven by a remarkable increase in other revenue streams (EUR 12.266 million, +313.2% YOY). The latter was mainly attributable to the great momentum experienced by the Companys component trading business line, outshining the relatively more modest growth in O&M and EPC revenues.

This strong business performance led to a consolidated 108.3% EBITDA improvement to EUR 8.119 million and incurred a record Q2 EBIT of EUR 4.640 million compared to EUR 0.968 million in the same period last year by absorbing the impact of the new windfall tax in Hungary, adopted by the Hungarian government retrospectively in June 2022.

Most importantly, the Company turned around a EUR -0.565 million loss before taxation recorded in Q2 2021 to an outstanding EUR 2.619 million profit in Q2 2022, as well as its net profit of EUR 2.030 million achieved during the reporting period (versus a net loss of EUR 0.869 million in Q2 2021).

Despite a negative other comprehensive income (OCI), which was affected by a weakening Hungarian Forint (HUF), the Company continues to report an increased positive consolidated total comprehensive income (TCI) for the quarter, amounting to EUR 0.546 million, compared to EUR 0.505 million last year for the same period.

Year-to-date, Photon Energy Group closed a record first half of the year with revenues amounting to EUR 32.367 million, representing a 124.4% increase YOY, raised its EBITDA by 146.2% YOY to EUR 10.143 million. EBIT swung from a loss of EUR -0.507 million to a profit of EUR 5.609 million. The Group recorded a net profit of EUR 0.539 million compared to a loss of EUR -4.037 million in the first half of 2021. At the bottom line, TCI amounted to EUR 2.335 million compared to EUR 2.297 million a year ago. The adjusted equity ratio remained at a sound level of 29.3%.

View the Company’s financial report for the second quarter and first half year of 2022 here.

 

Q2 & H1 2022 Results Presentation

The Company will host a live webcast on Friday 12 August at 10:00 am CEST to present its second-quarter and first half-year results followed by a Q&A session. Attendees are invited to submit questions during the session through the chat feature or in advance via email to ir@photonenergy.com.

Webcast: https://tailorsgroup.clickmeeting.com/photon-energy-q2-2022-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 120 MWp and has power plants with a combined capacity of 91.9 MWp in its proprietary portfolio. It is currently developing projects with a combined capacity of 825 MWp in Australia, Hungary, Poland and Romania and provides operations and maintenance services for 330 MWp worldwide. The groups second 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. The company is headquartered in Amsterdam, with offices in Australia and across Europe.

 

Media Contact

Martin Kysly
Head of Marketing and Corporate Communications
Tel. +420 774 810 670
E-mail: martin.kysly@photonenergy.com

 

Investor Contact

Emeline Parry
Investor Relations and Sustainability Manager
Tel. +420 702 206 574
E-mail: emeline.parry@photonenergy.com

 

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