7C Solarparken AG: Q1'23 EBITDA down by 25% due to bad weather and sinking power prices

Bayreuth (pta040/30.05.2023/17:35 UTC+2)

7C Solarparken (WKN: A11QW6, ISIN: DE 000A11QW68) reports its Q1'23 figures, which were driven by three main factors:

• Strong capacity growth: the weighted operating capacity has increased by 18% from 336 MWp in Q1'22 to 397 MWp in Q1'23.
• Unfavorable weather conditions: in line with the nationwide average, 7C Solarparken saw its specific yield falling by 26% to 129 kWh/kWp.
• Sinking power prices: there has been a sharp year-on-year decline in PV market price from EUR 168/MWh to EUR 105/MWh (minus 38%). The Group, however, was able to mitigate the effect on its capture price to minus 20% from EUR 238 / MWh to EUR 190/MWh reflecting i) a large part of the IPP Portfolio still enjoying higher feed-in tariffs, and ii) 93 MWp capacity benefitting from a swap agreement with a European utilities company ensuring a fixed price of EUR 149.5/MWh until the end of 2023.

As a result, EBITDA fell by 25% to EUR 8.9 million, which is higher than the implicit Q1 outlook of EUR 7.0 million provided in the annual results' presentation. This relative outperformance relates to various one-off items such as recovery of out-of-period curtailment losses (Redispatch 2.0) as well as a settlement with a direct energy seller for unauthorized shutdowns of an installation. Net debt came in at EUR 153 million, virtually in line with guidance.

Outlook remains unchanged so far

Firstly, management reiterated its confidence in its growth trajectory towards 460 MWp at the end of this year and towards 525 MWp next year. For 2023, the capacity target is quasi secured thanks to the advanced development status of different projects in Belgium (10 MWp), the start of construction of a freefield project on own land in Dessau (2MWp) and the preparation for its co-developed site in Herrnhut (17 MWp). Furthermore, 7C Solarparken is executing the acquisition of an existing PV park in Germany of > 10 MWp. Secondly, adverse weather conditions have persisted in April, while power prices are now ca. EUR 15/MWh lower than price levels observed at the time of guidance publication.

Steven De Proost, CEO of 7C Solarparken AG, comments: "After a superior year 2022 with high power prices and exceptionally strong irradiation, the operating conditions are normalizing in 2023: power prices are returning to normal levels, but irradiation has disappointed so far this year. Our guidance for 2023 remains unchanged but, admittedly, there should be no further setbacks in either power price or weather conditions. We also confirm our mid-term outlook: our pipeline is well-filled, growth for 2023-24 quasi-secured, financing for 2023 is fully in place and PPA/tender tariffs stand at attractive levels offering visibility in the newbuilt project returns.

The Q1'23 report is available in the Investor Relation section on our website. An Analyst Call is planned on May 31st, 2023 at 08:30 am. Institutional and semi-professional investors can also opt to participate at the virtual Roundtable presentation organized by AlsterResearch on June 1st , 2023 at 3:00 pm.

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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