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7C Solarparken AG: Q1'24 EBITDA down to EUR 7.0 Mio due to bad weather and sluggish power prices

Bayreuth (pta043/27.05.2024/18:18 UTC+2)

Bayreuth, May 27th, 2024 7C Solarparken (WKN: A11QW6, ISIN: DE 000A11QW68) publishes its Q1'24 figures today, which were driven by three main factors:

  • Strong capacity growth: the weighted operating capacity has increased by 6% from 397 MWp in Q1'23 to 421 MWp in Q1'24.
  • (Un-)favorable weather conditions: although Q1'24 was characterized by poor irradiation overall, the specific yield rose by almost 4% to 133 kWh/kWp, as the irradiation in Q1'23 was worse still.
  • Sluggish power prices: a sharp decline in PV power price from EUR 105/MWh in Q1'23 to EUR 57/MWh in Q1'24 could be observed. The Group, however, was able to mitigate the effect on its capture price as i) a large part of the IPP Portfolio is still enjoying higher fixed feed-in tariffs, and ii) capacity of ca. 132 MWp is covered by a swap agreement ensuring a final price of EUR 106/MWH (110 MWp) resp. EUR 89/MWh (22 MWp).

Group EBITDA fell from EUR 8.9 million in Q1'23 to EUR 7.0 million in Q1'24, which is higher than the implicit Q1 outlook of EUR 6.4 million included in the full year guidance as elaborated in the annual results' presentation. The EBITDA reported over Q1'23, however, included EUR 1.7 million of other operating income resulting amongst other one-off effects from the recovery of curtailments in 2022 (Re-Dispatch 2.0). Net debt came in at EUR 138.1 million, down from EUR 153.0 million at the end of the first quarter of 2023. The Group's Balance sheet remains very healthy boasting an Equity Ratio of 44.5%.

Outlook remains unchanged (so far)

Amid continued adverse weather conditions and record prevalence of negative prices throughout the months of April and May 2024, Management keeps the outlook unchanged. It should be noted that this means, Management is implicitly assuming an improvement in irradiation and power prices for the remainder of the year in order to maintain the "at least EUR 57 million" EBITDA guidance for the 2024 financial year. Forward power prices for 2025 have increased by EUR 20/MWh in recent days, whereas power demand shows early signs of recovery. The operational and strategic agenda remains unchanged and is progressing in line with expectations. Two projects have been refurbished already, construction is about to start on a series of new-build projects in Bayern, and re-powering in Demmin and Neuhaus-Stetten is being prepared. Furthermore, 7C Solarparken is currently strengthening its business model as to secure additional and more attractive routes to sell its power production.

Steven De Proost, CEO of 7C Solarparken AG, comments: "The current market conditions are mainly the result of lower electricity consumption reflecting EU recommendation to reduce energy use considering the Ukraine war. We can still observe a 10% lower demand for power compared to pre-Ukraine situation. At the same time, PV capacity is continuously being added to the market causing power prices to fall. It is however our conviction that this is but a temporary effect since electrification (from heat/transport into electricity), hydrogen via electrolysers and e-Mobility remain cornerstones of the energy transition. The recent increase in forward power prices confirms our view and makes us confident still that we can meet our EBITDA guidance, and also develop new projects at increased rates of return."

The Q1'24 report is available in the Investor Relation section on our website. An Analyst Call is scheduled on May 28th, 2024 at 08:30 am. Institutional and semi-professional investors can also opt to participate at the virtual presentation organized by MGB Research at 11:30 am.


Emitter: 7C Solarparken AG
An der Feuerwache 15
95445 Bayreuth
Contact Person: Koen Boriau
Phone: +49 921 230557-77
ISIN(s): DE000A11QW68 (Share) DE000A351NH5 (Optionsschein) DE000A351NK9 (Other)
Stock Exchange(s): Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate
Other Stock Exchanges: London