Solarpack achieves growth in three-digit percentages in H1 2020

Spanish solar company Solarpack Corporacion Tecnologica SA (BME:SPK) arrived at a net profit of EUR 4.8 million (USD 5.7m) in the first half (H1) of 2020, compared to EUR 626,000 recorded a year earlier.

The results came on the back of the strong performance of Solarpack’s power generation unit and construction assignments for third parties, the company said in its financial report.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) jumped by 226% year-on-year to EUR 31.9 million, while operating revenues surged by 191% to EUR 78.8 million.

Of Solarpack’s three business units, the power generation segment outperformed others, collecting EUR 28.3 million in revenues and EUR 25 million in EBITDA, up by 101% and 103% year-on-year, respectively. The power generation unit benefited from new build-and-own solar parks commissioned in late 2019 and early 2020.

Solarpack’s development and construction unit dedicated efforts to build-and-sell projects for third parties, but these failed to lift the EBITDA and revenues above levels seen in the first half of 2019.

The services unit recorded a 60% increase in revenues to EUR 3.8 million as a result of new contracts, but costs related to the commissioning of new assets brought down EBITDA by 41% on the year to EUR 0.5 million, Solarpack said.

At the end of June, Solarpack was awarded a 25-year power purchase agreement (PPA) for the 397-MW Gorbea project in India’s solar tender. This raised the capacity of contracted projects in the backlog to 513 MW.

At the end of the reporting period, Solarpack had stakes in 545 MW of solar parks located across Spain, Peru, Chile and India.

(EUR 1.0 = USD 1.186)

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