7C Solarparken AG: 9M'24 EBITDA decrease to EUR 44m, but cashflows over Q3'24 are a sign for optimism

Bayreuth (pta011/26.11.2024/08:00 UTC+1)

BAYREUTH, November 26th 2024 – Bayreuth-based solar park operator 7C Solarparken AG (WKN: A11QW6 / ISIN: DE000A11QW68) announced nine-months results. EBITDA fell by 21% to EUR 44M compared to the first nine months of 2023, during which electricity prices remained at a high level in the aftermath of the Ukraine crisis. The average PV market price fell from EUR 73/MWh in the comparable period to EUR 43/MWh in the first nine months of 2024 on the back of record levels of negative prices. Furthermore, weather conditions also adversely impacted the results, as the nationwide specific yield for all German PV installations was 8% lower than the long-term average. The group noticed an even sharper fall in specific yield amounting to 770 kWh/kWp in the first nine months, mainly resulting from curtailments due to Re-Dispatch and negative prices. Aside from negative effects because of low electricity prices and poor irradiation, the group also incurred an impairment loss of EUR 5.4M on a loan receivable related to the 20 MWp project "Reuden Süd" during Q2'24 as the result of a contractual breach by the developer and seller.

Despite this overall negative market context, the group was able to raise its capture price from EUR 158/MWh in Q2'24 to EUR 170/MWh in Q3'24. The reasons are twofold: i) the profile of the contracted swap agreements in Germany and ii) a roll-out of active curtailment management scheme in Belgium. The market approach the group is taking is reflected by these two trading strategies, which work particularly well in an environment of low or even negative electricity prices. During Q3'24, the majority of EBITDA ultimately reinforced the group's balance sheet with net debt falling to EUR 111M (versus EUR 133M at the end of FY'23 and versus EUR 128M at the end of Q2'24).

OPERATIONAL NEWSFLOW

• IPP Portfolio rising to 468 MWp including the recently started projects in construction of 23 MWp. Construction of these installations across Bavaria is on-track to see their first power at the end of Q1'25.
• Management has used the recent rally in power prices to secure multiple electricity price swaps agreements for the financial year 2025. Thereby nearly all solar assets with negative price exposure have been hedged. New swap agreement include: i) a three-years electricity price swap at EUR 56/MWh for a volume of 22 MWp and ii) an option agreement encompassing almost 30 MWp capping our capture price at EUR 75/MWh for the year 2025 in exchange for a lump sum payment to the group

Steven De Proost, CEO of 7C Solarparken AG, comments: "Evidently, we cannot be euphoric with the reported EBITDA, especially when comparing it to the same period last year. Nonetheless, the slump in EBITDA is almost entirely caused by the one-off impairment on the receivable for Reuden Süd. We are currently pursuing all legal avenues to recover parts of the lost funds. Furthermore, we still see some chance to find solutions to bring the project to grid connection by the end of 2025 in case of full cooperation of all other stakeholders. Our operating strategy remains unchanged: i) cash flow protection is the main focus, which is operationalized by amongst other concluding swaps and improving technical performance and ii) growth when the risk reward ratio is right. Our overall financial aim is to return to normal EBITDA-levels as from 2025 and we reiterate our intention to initiate a new share buy-back program once the expiring promissory note (EUR 21M in Q1'25) is repaid or refinanced".

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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