Photon Energy (PEN) Q2 2024 earnings summary

Executive summary

• IPP portfolio expanded to 132.8 MWp (+17.4% YoY), with further growth to 143.5 MWp expected in Q3 2024 and new capacity commissioning underway.

• Electricity generation increased 37% YoY in Q2 2024 to 56.6 GWh, driven by favorable weather and higher specific yield.

• Revenue mix shifted from volatile technology trading to more stable EPC and capacity market contracts, with strong traction in New Zealand, Czech Republic, and Romania.

• Expansion into South Africa with a 262 MWp pipeline and continued project development in Australia, Romania, and Poland.

• EBRD financing facility of up to EUR 15 million signed in May 2024, supporting growth and new projects.

Financial highlights

• Q2 2024 revenues rose 14.1% YoY to EUR 23.9 million; H1 2024 revenues reached EUR 41.3 million (+2.6% YoY).

• EBITDA in Q2 2024 at EUR 5.3 million (+110.7% YoY); H1 2024 EBITDA at EUR 6.1 million (+113.8% YoY), with margin improvement from higher-margin business segments.

• Net profit of EUR 0.1 million in Q2 2024, reversing a loss of EUR -2.8 million in Q2 2023; H1 2024 net loss narrowed to EUR -4.1 million from EUR -7.4 million YoY.

• Total comprehensive income impacted by non-cash FX losses, resulting in EUR -5.1 million in Q2 2024 and EUR -6.2 million in H1 2024.

• Cash and liquid assets increased to EUR 15 million, with operating cash flow positive at EUR 6.6 million in H1 2024.

Outlook and guidance

• Full-year 2024 guidance confirmed: revenues expected at EUR 90–100 million and EBITDA at EUR 16–18 million, with H2 revenues and profitability expected to exceed H1.

• Management expects higher profitability in H2 due to new capacity, strong market conditions, and a resilient business model focused on EPC, capacity market, and O&M contracts.

• Futures markets indicate stable or rising energy prices, supporting a positive outlook.