German renewables pure-player Pacifico Renewables Yield AG (ETR:PRY) on Wednesday reported more than solid earnings for the first half of 2022, after announcing a name change and a new strategic direction a day prior.
The independent power producer (IPP) will be known going forward as Tion Renewables AG once the name is formally etched in the commercial register. The name was inspired by the suffix “-tion”, used to form words transition, acceleration, innovation and motion, the term ion to suggest the company’s operations in the energy space, and the word renewables, Pacifico explained.
“Our name is short, memorable, modern and dynamic. It captures our progressive nature, our innovative approach, our virtues and aspirations as a company,” the firm said.
Its preliminary first-semester earnings were no less memorable as revenues surged by 137% on the year to EUR 21.2 million (USD 21.2m). Pacifico/Tion said the haul almost equalled full-year revenues for 2021. Power production levels were sub-par in January-June mainly due to weaker than expected wind conditions. These effects were compensated by higher energy prices in Europe, the company added.
The group’s earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for non-recurring items, jumped by 138% to EUR 15.4 million.
The adjusted operating EBITDA margin shrunk to 78% compared to 83% in the first half of 2021. The decline was mainly the result of a higher solar tax in the Czech Republic and increased expenses for real estate tax for the acquisition of a 51.8-MW wind project in Poland, it is said in the earnings release.
The company left the Czech market in July after selling its 7.5-MW portfolio of operating solar farms there.
Looking ahead, Tion will seek to expand into green technologies beyond renewables, such as utility-scale energy storage, under the new strategy. Its shareholders on Tuesday approved the decision to raise new authorised capital and conditional capital in 2022, to enable the company to raise up to 50% of the existing share capital under each authorisation and fund growth opportunities.
Furthermore, Tion will aim to go after new capital by letting more institutional investments flow into energy transition assets, and pursue a more diversified portfolio in partnership with Pacifico’s recent investee clearvise AG (ETR:ABO).
(EUR 1.0 = USD 0.999)
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Collocated solar and wind parks. Photo Credit: Istock
