Solarpack's net profit plunges in Q1 2021

Spanish solar company Solarpack Corporacion Tecnologica SA (BME:SPK) on Tuesday posted a first-quarter (Q1) net profit of EUR 0.3 million (USD 0.36m) compared to the EUR 6.5 million registered in the same period a year ago.

The drop is a reflection of the higher-than-average margins for construction activities for third parties the company registered in the first quarter of 2020, Solarpack explained.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) went down to EUR 12.2 million from EUR 18.9 million, while operating revenues declined to EUR 28.4 million from EUR 35 million.

The following table gives more details.

The company's power generation segment, known as POWGEN, operates 450 MW of attributable capacity, or 545 MW in total. Solarpack blamed this unit's "slightly lower results" on the fact that in the second quarter of 2020 it sold a 49% stake in its Peruvian assets.

At the same time, the development and construction segment, or DEVCON, experienced margin erosion due to higher costs in Chile, partially compensated for by the strong margin from the 116-MW 3SP solar park under construction in Malaysia.

Solarpack's under-development portfolio grew to 8.7 GW from 8.1 GW in the final quarter of 2020, with 3.6 GW planned for tenders and commercial initiatives in 2021. The company was providing operation and maintenance (O&M) services to 742 MW of plants at the end of March 2021 and asset management for 716 MW of own and third-party capacity.

(EUR 1.0 = USD 1.217)

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