7C Solarparken AG: 7C Solarparken achieves EBITDA of EUR 47.2 Mio in 2024

Bayreuth (pta037/03.04.2025/17:35 UTC+2)

7C Solarparken (WKN: A11QW6, ISIN: DE 000A11QW68) reports an EBITDA of EUR 47.2 Mio., which is significantly lower than the initial EUR 57 Mio. guidance but slightly above the revised prognosis of EUR 46 Mio. The Group's operational performance has been affected by lower power prices and slightly lower production, but still the Profit and Loss statement remained overshadowed by the unscheduled write-off of a receivable of EUR 5.4 Mio. related to the project Reuden Süd. Cash Flow per Share dropped to EUR 0.44 compared to the initial guidance of EUR 0.57 and the revised outlook of EUR 0.43. Operationally, weak irradiation and an increasing level of curtailments have reduced the production volume by 1% to 369 GWH, equivalent to 861 KWH/KWP compared to 908 KWH/KWP in 2023. As a result, power sales fell back by 8% to EUR 63 Mio. The group's capture price, however, held firm at EUR 170/MWH - better than guidance - as a result of the structure of underlying swap agreements and the roll-out an optimized trading strategy. Swap agreements protect the company against the rising number of negative hours. For the year 2025, the number of underlying MW's under swap agreements has even increased. Given that price to book ratio at the current stock price is well below a multiple of 1, management focused on the valuation of solar and wind parks, and amid the context of falling capture ratios and rising bond yields, asset impairments totaling EUR 4.4 Mio. were incurred in the financial year 2024. The carrying amount value of the solar and wind parks stood at EUR 370 Mio at the end of 2024. The group's balance sheet remains very solid with an equity ratio of 43.6% implying a book value of EUR 2.69/share. In the absence of substantial capex, net debt has reduced to EUR 113.9 Mio. versus EUR 133.3 Mio in 2023.

Outlook 2025

The current market situation can be best described as very uncertain in view of record numbers in hours with negative prices and continuing expansion of the PV asset base, amid a stagnating electricity demand. Although management sees signs for optimism following the publication of the most recent changes to the German renewable energy act (EEG) law, the financial return on standard new-build projects is not meeting the group's hurdle rates. As a result, the focus has shifted to opportunistic growth solely, mainly through extensions or re-powering of existing installations. Further key points for 2025 remain unchanged: i) protection of existing cash flows and ii) consideration of all recovery options for Reuden Süd for which the group targets a negotiated solution with all relevant stakeholders.

For its guidance 2025, management has assumed a PV market price of EUR 51/MWH for the full year. EBITDA and CFPS are guided at EUR 51 Mio and EUR 0.50/share for 2025. Following the re-financing of the group's promissory notes, today the group has announced a share buy-back program of up to EUR 10 Mio at a price of max EUR 2.20/share.

Steven De Proost, CEO of 7C Solarparken AG: " 2024 has been a disappointing year, mainly related to project in Reuden Sud, for which we acquired a shareholder loan in 2023 under the warranty of the loan being free of encumbrances and pledges. Unfortunately, as we discovered in 2024, the seller had already pledged the loan to an infrastructure investor and used proceeds of the sale for other purposes than completing the PV installation as was contractually agreed. This situation did not only cause financial damage to the company, but it also had a negative reputational impact on management and on the companies' stock price. We still expect to rescue the 20 MWP project, but contracts will need to be put in place with different stakeholders to turn the completion into a success. Furthemore, the fundamentals of the PV power market remain uncertain with negative power prices being very disruptive for investor confidence and for the entire energy system. Increased electrification is not reaching the required dynamic, so that we are currently analyzing more intensively to battery projects as instrument to protect the cash flows of our PV parks, but also as tool towards additional income."

Group and statutory annual report 2024

The group and statutory annual reports and accompanying presentation are available on the company's website in the "Investor Relations" section as from April 3rd 2025, 17:35 CET. A conference call for analysts is planned on April 4th, 2025 at. 08:30 CET.

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Emitter:	7C Solarparken AG An der Feuerwache 15 95445 Bayreuth Germany
Contact Person:	Koen Boriau
Phone:	+49 921 230557-77
E-Mail:	info@solarparken.com
Website:	www.solarparken.com
ISIN(s):	DE000A11QW68 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate
Other Stock Exchanges:	London