Renewable

April 8 (Renewables Now) - German photovoltaic (PV) plants owner 7C Solarparken AG (ETR:HRPK) today reported an 8.5% rise in earnings for 2019 and guided for a lower figure in 2020, in part due to the coronavirus crisis.

The company posted a record earnings before interest, tax, depreciation and amortisation (EBITDA) of EUR 38.1 million (USD 41.4m) for 2019 compared to EUR 35.1 million a year earlier. It attributed the improvement in its performance to an expansion of its portfolio to 190 MWp from 154 MWp, above-average weather conditions and several one-time items. In addition, the first-time adoption of the IFRS 16 standard has added EUR 0.8 million to EBITDA.

For 2020, 7C Solarparken forecasts an EBITDA of EUR 36 million, taking into consideration an expected negative impact of EUR 0.8 million arising from the COVID-19 situation.

In 2019, cash flow per share beat both the initial projection of EUR 0.50 and the revised forecast for at least EUR 0.52 and reached EUR 0.55. This year, the figure is seen at EUR 0.48 per share.

The guidance is based on a fully operating portfolio of 201 MWp as from end-June 2020, but if the company achieves all strategic objectives for the year and ramps up its portfolio to 220 MWp, EBITDA and cash flow per share should still rise to EUR 41.3 million and EUR 0.57, respectively, under normal weather conditions.

"We are in an excellent position due to the fact that 84% of our revenues is originated from PV plants commissioned prior to 2016, so that even negative prices have no effect on their production. In these challenging times, we are still very optimistic to meet our 220 MWp target before year-end 2020,” commented CEO Steven De Proost.

The management board of the company will propose to keep the dividend unchanged at EUR 0.11 per share. However, the annual meeting at which this proposal will be made is being postponed until further notice because of the coronavirus crisis.

(EUR 1.0 = USD 1.087)