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Spain's Grenergy swings to profit in Q1 2020 as construction booms

The El Olivo solar plant. Source: Grenergy

May 21 (Renewables Now) - Spanish renewable energy company Grenergy Renovables SL (BME:GRE) turned a net profit of EUR 3.4 million (USD 3.7m) for the first quarter of 2020 on the success of its development and construction division.

For comparison, the company posted a net loss of EUR 0.4 million in the same period last year.

According to financial results for January-March 2020 released on Thursday, earnings before interest, taxes, depreciation and amortisation (EBITDA) reached EUR 5.6 million, compared to a loss of EUR 0.5 million a year back, underpinned by the commissioning of four solar projects in Chile.

The sale of these projects was agreed with unnamed international funds, bringing EUR 22.8 million in revenues to Grenergy’s development and construction division, the company said.

Overall quarterly revenues totalled EUR 33.3 million, up 227% year-on-year.

Besides achieving success in the build-to-sell segment, Grenergy continued to work on own portfolio. The company said it was making progress in the construction of the 103-MW Quillagua solar project in Chile, 24-MW Kosten wind project in Argentina and the 36-MW Duna Huambos wind project in Peru.

Scheduled commissioning date of the Quillagua project will not change, but the connection of wind farms in Peru and Argentina will be delayed by at least a quarter due to a series of measures imposed in both countries to contain the health crisis caused by the COVID-19 pandemic.

The final development stage and the financial close for the 200-MW Escuderos solar project in Spain are also delayed, so the connection date is now pushed to the second quarter of 2021.

Apart from these delays, Grenergy does not expect the global health crisis to have impact on its future growth. The company said it has sufficient liquidity and a financing plan to carry out investments as laid out in its business plan.

The company's pipeline of projects in various stages of development reached 4.5 GW dispersed across six countries, Grenergy said.

(EUR 1.0 = USD 1.097)

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Sladjana has significant experience as a Spain-focused business news reporter and is now diving deeper into the global renewable energy industry. She is the person to seek if you need information about Latin American renewables and the Spanish market.

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