Renewable Developer Emeren’s Net Income Hits Five-Year High in Q2 2023
The company recorded a revenue of $33.85 million, a YoY increase of 312.3%
Utility-scale solar and battery storage projects developer Emeren Group recorded a net income of $8.3 million during the second quarter (Q2) of 2023, marking the highest level seen in the past five years and accounting for a massive year-over-year (YoY) improvement from a loss of $204,000.
The surge in net income was attributed to solar and battery storage project execution in Europe.
The company recorded a revenue of $33.85 million, a YoY increase of 312.3%, which was driven by strong contributions across all of its business lines.
The gross profit margin reached 37.4%, mainly due to a better blend of more profitable projects, especially in Europe, where they capitalized on increased energy prices.
The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were recorded at $9.31 million, a YoY improvement of 307% from $2.29 million.
Operational Highlights in Q2
In their project development business, the company completed the sale of two solar projects in Poland and Hungary, totaling 62 MW.
In July, the company successfully concluded the sale of an 11.5 MW solar project in Germany to the Swiss-based energy firm MET Group.
Additionally, during the quarter, healthy revenue and margin contributions were observed from the recently acquired solar farm in Branston, U.K., attributed to favorable energy pricing.
Furthermore, in the second quarter, the company executed its storage pipeline strategy and commenced its monetization process by initiating 260 MW of battery energy storage system projects in Italy.
The initiative was part of their recently announced strategic partnership with Matrix, aimed at developing up to 1.5 GW of a portfolio of battery energy storage systems in Italy.
During the first half (1H) of the year, the company recorded a net income of $8.15 million, an impressive improvement of 331% YoY from a loss of $1.89 million.
Emeren Group’s revenue for the period of January to June accounted for $46.72 million, a YoY improvement of 298%.
The company’s EBITDA for 1H stood at $8.8 million, a YoY increase of 205% as compared to $2.88 million.
Emeren has been a strategic partner of Renesola Power since 2021 to co-develop clean projects in Italy. The latter acquired the solar and battery storage projects developer last year in October.
The company’s revenue grew by 271% year-over-year (YoY) to $13 million in Q1, with significant contributions from the company’s IPP (independent power producer) and engineering, procurement, and construction businesses.