7C Solarparken (HRPK) Q4 2024 earnings summary

Executive summary

• 2024 marked by a sharp drop in PV power prices, increased negative price hours, and significant curtailments, leading to lower production and a major write-off related to the Reuden Süd project.

• EBITDA reached EUR 47.2 Mio. in 2024, below initial guidance but above revised outlook, mainly due to the Reuden Süd write-off and lower power sales.

• Net profit dropped to EUR 1.0 Mio. (from EUR 11.4 Mio. in 2023), with group net profit at EUR 0.5 Mio.

• Asset impairments of EUR 4.4 Mio. incurred due to falling capture ratios and rising bond yields.

• Management shifted focus to cash flow protection, opportunistic growth, and share buy-backs.

Financial highlights

• Revenues declined to EUR 63.3 Mio. (from EUR 69.8 Mio. in 2023), mainly due to lower production and capture price.

• EBITDA dropped to EUR 47.2 Mio. (from EUR 61.6 Mio.), impacted by EUR 5.4 Mio. Reuden Süd write-off and EUR 4.4 Mio. asset impairments.

• Net debt reduced to EUR 113.9 Mio. (from EUR 133.3 Mio.), net debt/EBITDA at 2.4x.

• CFPS fell to EUR 0.44/share (from EUR 0.61/share in 2023), below initial guidance.

• Equity ratio stable at 43.6%, book value EUR 2.69/share.

Outlook and guidance

• 2025 EBITDA guidance: EUR 51 Mio.; CFPS: EUR 0.50/share.

• PV market price assumption for 2025 is EUR 51/MWH.

• Planned EUR 24 Mio. capex for acquisitions, re-powering, and possible Reuden Süd completion.

• Share buy-back program up to EUR 10 Mio. at max EUR 2.20/share.

• Focus on cash flow protection, opportunistic growth, and recovery options for Reuden Süd.