7C Solarparken raises 2022 earnings target despite risk of windfall tax

Image by 7C Solarparken AG. All Rights Reserved.

September 22 (Renewables Now) - German photovoltaic (PV) plants owner 7C Solarparken AG (ETR:HRPK) on Thursday increased its earnings target for 2022 on the back of strong growth in the first half of the year and despite the risk of a revenue cap.

The company now expects its earnings before interest, tax, depreciation and amortisation (EBITDA) to come in at EUR 61.8 million (USD 61.2m), compared to EUR 59 million projected previously.

The outlook was revised upwards although the European Commission (EC) last week unveiled a plan to introduce a revenue cap of EUR 180 per MWh on lower-cost power generators which applies to renewables. This risk was taken into consideration in the forecast, the firm noted.

In the first half of 2022, 7C Solarparken saw its revenues soar more than 51% to EUR 43.7 million thanks to increased power output and a 17% rise in average capture price. Total production output grew by 31% to 189 GWh driven mainly by the expansion of the weighted running capacity to 337 MWp.

EBITDA in the period surged by 52% year-on-year to EUR 38.7 million which led to a consolidated profit of EUR 14.8 million, more than twice as much as the company earned a year earlier.

(EUR 1 = USD 0.991)

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