Otovo continues to grow in Q1 amid high demand for residential solar

Norway-based home solar and battery systems installer Otovo AS (FRA:89K) has reported a sharp rise in revenues in the first quarter of 2022 as demand for residential solar systems continued to grow strongly.

The company recorded a 191% year-on-year surge in its revenue to NOK 109.2 million (USD 11.72m/EUR 11.09m) as the number of sold projects skyrocketed 212% to 2,541 and the number of completed installations soared 120% to 1,459. Apart from the brisk demand for solar power, the growth was driven by the expansion into existing markets and the entry into new markets such as batteries. Otovo noted that one in four of its sales in the quarter included a battery with Germany and Italy accounting for the strongest demand.

At NOK 69.5 million, operating loss in the first quarter of 2022 increased from NOK 39.9 million a year earlier mainly due to costs related to the expansion and effects related to the consolidation of European Distributed Energy Assets Holding AS (EDEA). Otovo acquired the Norway-based renewables company at the end of 2021 to boost the leasing of solar panels across Europe.

After taxes, the home solar specialist booked a loss of NOK 79.6 million compared to a loss of NOK 39.6 million a year before.

In the next few months, Otovo is preparing to enter Portugal, the UK and Austria. It has a pipeline of 3,591 projects equivalent to NOK 442 million in revenue. The company also warned of risks of local hardware bottlenecks which could appear at times due to disrupted supply chains as covid-19 is hitting production centres in Asia.

(NOK 1 = USD 0.107/EUR 0.102)

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