Photon Energy N.V. (WSE: PEN, the 'Group' or'Company') today announced financial results for the secondfiscal quarter, ending 30 June 2020, posting consolidated revenuesof EUR 8.882 million, up by 11.9% YoY, and EBITDA of EUR 4.035million, up by 14.8% YoY.
‘Even though the second quarter was not without challenges dueto the ongoing COVID-19 pandemic, we are proud to have delivered astrong operational performance in all of our businesses and toreport the best second quarter in terms of revenues andprofitability in the Company’s history,’ commented Georg Hotar, CEOof Photon Energy N.V.
In Q2 2020, the Company commissioned five power plants with acombined capacity of 3.5 MWp in Mályi and Kunszentmárton, expandingthe Group's installed base in Hungary to 35.0 MWp and its totalproprietary portfolio of power plants to 60.6 MWp. It also startedconstruction on plants with a combined capacity of 14.6 MWp and14.1 MWp in Australia and Hungary, respectively, and won a tenderto deliver a 3 MWp power plant in Wodonga, Australia.
In the reporting period, Photon Energy – as an independent powerproducer – also saw outstanding figures in electricity generationfrom its growing portfolio of power plants, increasing to 25.2 GWh,up by 73.7% YoY, and made a strategic investment in theMelbourne-based technology company RayGen Resources.
Consolidated revenues increased by 11.9% YoY to EUR 8.882million. An all-time record for the second quarter, this growth waspartly attributable to a strong electricity generation output(+73.7% YOY) as a result of the expansion of our proprietaryportfolio in Hungary (+23.5 MWp over the past 12 months) and by asolid generation output from existing power plants in the CzechRepublic and Slovakia. A steady growth in revenues from O&Mservices in Europe and the Company’s engineering (EPC) activitiesin Australia also contributed to this increase.
As a result, this strong business performance led to a recordEBITDA of EUR 4.035 million in Q2 2020 (+ 14.8% YoY). Depreciationincreased as a result of the newly connected power plants inHungary, yet the Company still reached a record quarterly EBIT ofEUR 1.613 million in Q2 2020 (+5.9% YoY).
Overall, net financial expenses increased by 63.3% to EUR -1.591million in Q2 2020 as a result of the business expansion inHungary, which included the refinancing of the Group’s portfolio,and an additional EUR 7.5 million placement of Photon Energy EURBond in the third quarter of 2019.
Thanks to the grid-connection of new power plants in Mályi andKunszentmárton, the Company recorded a positive revaluation of EUR0.641 million in Other Comprehensive Income (OCI) according to IAS16. The EUR -4.709 million foreign currency difference related toturbulence in the financial markets which significantly impactedour bottom line in Q1 was partially offset this quarter, with apositive EUR 1.534 million currency translation effect recorded atof the end of Q2 2020 (both effects not realised, with no cashimpact). As a result, Photon Energy ended the second quarter of2020 with a Total Comprehensive Income (TCI) of EUR 1.183 millioncompared to EUR 0.664 million a year earlier.
Looking at the first half year 2020, the Company’s revenuesincreased by 17.0% to EUR 14.198 million, while EBITDA rose 18.1%to EUR 5.426 million and EBIT increased by 6.8% to EUR 1.726million. The Company recorded a net loss of EUR -2.678 millioncompared to EUR -1.070 million in H1 2019. TCI amounted to EUR-3.142 million compared to a positive EUR 1.839 million in H1 2019.Excluding the unrealized currency translation impact connected tothe high volatility in the currency market brought by theCoronavirus crisis, Total Comprehensive Income amounted to EUR0.033 million in H1 2020. In addition, increased businessdevelopment costs impacted the Company’s bottom line, yet allowedit to handle a larger business volume. Given the growth of itsproprietary portfolio, Photon Energy expects further growth in itsprofitability going forward.
After the reporting period, the Company increased itsoutstanding 7.75% Bond 2017/2022 to EUR 43.0 million and submittedthe prospectus to the Dutch financial market regulator (AFM) inorder to move the listing of its shares to the regulated markets ofthe Warsaw and Prague Stock Exchanges.
The company will present the results, followed by a Q&Asession via a live webcast, on 14 August at 11:00 am CEST.Participants are invited to ask questions through the webcast chatbox, or can email them in advance to ir@photonenergy.com.
Webcast: https://tailorsgroup.clickmeeting.com/photon-energy-q2-2020-results-presentation
Download the quarterly report here (pdf).
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Martin Kysly
Photon Energy
T +420 774 810 670
E martin.kysly@photonenergy.com