Soltec Power Holdings Gains Momentum as Q2 Losses Drop by 50%
The company’s revenues stood at €107.8 million, a YoY increase of 40%
Solar tracker manufacturer Soltec Power Holdings recorded a net loss of €4.8 million (~$5.05 million) during the second quarter (Q2) 2023, a year-over-year (YoY) improvement of 50% from a net loss of €9.6 million (~$10.1 million).
During the April to June quarter, the consolidated revenues stood at €107.8 million (~$113.5 million), a YoY increase of 40%, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) recorded a loss of €5.6 million (~$5.8 million), a 21.7% YoY improvement.
In Q2, revenues from the industrial division amounted to €103.5 million (~$109 million).
Soltec said the seasonality of the business is reflected in these results and is mainly due to the extension in the deadlines of certain administrative processes in Spain and the publication of the guidelines for the Inflation Reduction Act in the United States.
The division’s operating indicators reflect the positive development of the year, with a slow start and an upward trend over the months, benefiting from a clearly stronger second half.
The company anticipates strong demand in the upcoming quarters due to the recent signing of 55 contracts totaling 2.3 GW by September 2023. Among these contracts, 1.3 GW were signed in the last three months.
Soltec ended the first half (1H) of the year with a net loss of €14.4 million (~$15.5 million), a 44% decrease YoY.
Revenue was recorded at €184.5 million (~$194.2 million), a decrease of 24.5% YoY, while EBITDA stood at €10.2 million (~$10.7 million) loss, a 100% improvement YoY.
The company mentioned its industrial division continues to reflect the high value-added of solar trackers and their strong global demand, having delivered more than 1 GW in the first half of the year and reaching a cumulative track record of 17 GW.
In 1H, the industrial division revenues amounted to €174.8 million (~$184 million).
Additionally, the company has more than 2 GW of contracts ready to be signed soon, particularly in regions where it has its production capabilities.
Furthermore, the company is enhancing its power purchase agreement strategy, having signed contracts for 260 MW in Spain and Brazil. They have also recently signed agreements for 29.4 MW across five projects currently in development in Spain.
Soltec presently has 230 MW in operational capacity and an additional 25 MW under construction.
They have plans to have between 750 MW and 1 GW either under construction or in operation by 2025.
The company’s net loss narrowed to €9.6 million (~$10.4 million) in the first quarter of the financial year 2023 compared to a net loss of €15.5 million (~$17 million) year-over-year, mainly due to lower cost despite declining revenue.