AI Terminal
Photon Energy N.V.
Regulatory Filings • Aug 12, 2022
5761_rns_2022-08-12_b32cddfa-bb60-4fd8-8416-b5dd128eed6e.pdf
Regulatory Filings
Open in ViewerOpens in native device viewer
Photon Energy N.V.
Monthly Report for July 2022
For the period from 1 to 31 July 2022
1. Information on the occurrence of trends and events in the market environment of the Issuer, which in the Issuer's opinion may have important consequences in the future for the financial condition and results of the Issuer
1.1 Photon Energy achieves outstanding energy generation volume and record revenues in July
In July the Company produced 11.5 GWh (+22.9% YOY) of renewable energy and generated estimated record monthly revenues of EUR 5.565 million (+108% YOY).
YTD the Company reports 80.5 GWh of electricity produced compared to 59.6 GWh one year ago (+35.1% YOY) propelled by the addition of two new power plants in Tolna, Hungary (1.4 MWp added in December 2021 and 1.4 MWp added in May 2022) and of our two utility-scale PV power plants in Leeton, Australia (14.6 MWp connected to the grid in August 2021). This represents an avoidance of 31,647 tonnes of CO2 emissions year-to-date.
With over 80% of the Company's power plant portfolio selling electricity directly to the grid at market prices, the Company expects revenues of EUR 21.301 million in the first seven months of 2022, compared to EUR 19.402 million for the full year 2021 (+9.8% YOY).
In July the proprietary portfolio outperformed the audits by 5.1%. Our Czech, Slovak, and Hungarian portfolios exceeded energy forecasts by 3.8%, 4.3% and 6.8%, respectively, while our Australian portfolio was short of estimates by 2.0%.
For more information, please refer to chapter 2. Proprietary PV power plants.
1.2 Construction of five solar projects with 16.5 Mwp in Romania
During the reporting period, the Company announced that it started the construction of another four Romanian PV power plants, bringing the total number of projects under construction in the country to five, with a combined generation capacity of 16.5 MWp.
The five power plants are scheduled to commence operations in the fourth quarter of 2022 and to sell electricity on the energy market on a merchant basis, that is without any support or a power purchase agreement with an energy offtaker.
Upon the commissioning of these plants, the Company will own and operate 93 solar power plants with a combined generation capacity of 108.3 MWp in its IPP portfolio. A combined 92 MWp will be selling subsidy-free clean electricity directly on the energy market.
The Company is currently developing utility-scale solar PV projects with a combined capacity of 235.4 MWp in Romania. The remaining project development pipeline is expected to be built and commissioned in 2023 and 2024 and thus the Romanian market will significantly contribute to the Company's goal of expanding its IPP portfolio to at least 600 MWp globally by the end of 2024.
1.3 Photon Energy Group reports strong second quarter 2022 growth and updates its 2022 financial guidance
In the second quarter of 2022 the Company more than doubled its revenue to EUR 23.229 million (up 135.7% YoY) leading to a record consolidated Q2 EBITDA of EUR 8.119 million (up 108.3% YoY). In the first half of 2022, revenues rose to EUR 32.367 million (up 124.4%), while EBITDA grew by 146.2% to EUR 10.143 million. The Group turned on pre-tax and after-tax levels into the positive in both Q2 and H1 2022.
Driven by the great momentum in direct electricity sales into the market, the Company has increased its full-year 2022 revenue expectations from the previously communicated EUR 65 million to EUR 85 million (up 133.8% YoY) and EBITDA from the previous EUR 18 million to EUR 24 million (up 150.4% YoY).
1.4 Reporting on Photon Energy's project pipeline
Photon Energy is currently developing PV projects in Australia (300.0 MWp), Hungary (25.8 MWp), Romania (235.4 MWp) and Poland (263.9 MWp) and is evaluating further markets for opportunities.
For detailed information, please refer to chapter 3 "Reporting on Photon Energy's project pipeline".
2. Proprietary PV power plants
The table below represents power plants owned directly or indirectly by Photon Energy N.V. as of the date of the report.
Table 1. Production results in July 2022
| per MWh, Unit kWp kWh kWh % kWh kWh % % in July Komorovice 2,354 850 EUR 339,348 322,028 5.4% 1,770,784 1,639,166 8.0% 14.3% Zvíkov I 2,031 859 EUR 264,737 292,097 -9.4% 1,540,671 1,508,136 2.2% 6.5% Dolní Dvořiště 1,645 852 EUR 235,385 220,761 6.6% 1,127,293 1,087,831 3.6% 5.0% Svatoslav 1,231 848 EUR 173,456 166,639 4.1% 847,110 789,240 7.3% 11.7% Slavkov 1,159 849 EUR 178,886 166,978 7.1% 968,754 877,521 10.4% 11.3% Mostkovice SPV 1 210 844 EUR 30,109 28,346 6.2% 160,805 146,076 10.1% 14.0% Mostkovice SPV 3 926 891 EUR 137,679 126,512 8.8% 726,092 648,136 12.0% 13.3% Zdice I 1,499 851 EUR 229,198 216,188 6.0% 1,197,885 1,114,386 7.5% 11.9% Zdice II 1,499 851 EUR 230,918 219,586 5.2% 1,215,442 1,130,942 7.5% 10.8% Radvanice 2,305 851 EUR 341,600 323,886 5.5% 1,812,840 1,655,239 9.5% 14.2% Břeclav rooftop 137 847 EUR 21,376 18,975 12.7% 114,942 103,012 11.6% 11.1% Total Czech PP 14,996 2,182,692 2,101,997 3.8% 11,482,617 10,699,686 7.3% 11.1% Babiná II 999 271 EUR 141,719 137,655 3.0% 706,321 635,105 11.2% 9.7% Babina III 999 271 EUR 140,568 137,187 2.5% 700,887 641,682 9.2% 6.4% Prša I. 999 270 EUR 152,407 147,232 3.5% 740,849 687,403 7.8% 13.4% Blatna 700 273 EUR 107,852 101,678 6.1% 518,053 475,422 9.0% 7.4% Mokra Luka 1 963 258 EUR 152,641 144,941 5.3% 853,894 721,672 18.3% 13.0% Mokra Luka 2 963 257 EUR 152,490 144,134 5.8% 865,954 754,384 14.8% 12.8% Jovice 1 979 263 EUR 130,861 123,814 5.7% 639,195 576,799 10.8% 15.0% Jovice 2 979 263 EUR 130,085 123,315 5.5% 634,220 568,928 11.5% 14.8% Brestovec 850 257 EUR 134,266 131,473 2.1% 731,733 665,070 10.0% 17.5% Polianka 999 261 EUR 142,575 136,649 4.3% 701,004 640,852 9.4% 9.3% Myjava 999 259 EUR 154,290 148,532 3.9% 796,482 732,927 8.7% 7.9% Total Slovak PP 10,429 1,539,755 1,476,611 4.3% 7,888,593 7,100,244 11.1% 11.6% Tiszakécske 1 689 366 EUR 111,888 106,046 5.5% 607,101 547,624 10.9% 8.2% Tiszakécske 2 689 366 EUR 112,121 106,184 5.6% 610,440 550,381 10.9% 8.5% Tiszakécske 3 689 366 EUR 111,030 105,411 5.3% 591,072 538,449 9.8% 8.1% Tiszakécske 4 689 366 EUR 112,159 106,184 5.6% 607,253 550,381 10.3% 7.4% Tiszakécske 5 689 366 EUR 111,785 106,046 5.4% 607,573 547,624 10.9% 17.0% Tiszakécske 6 689 366 EUR 111,807 106,184 5.3% 608,359 550,381 10.5% 8.2% Tiszakécske 7 689 366 EUR 111,955 106,012 5.6% 609,431 547,335 11.3% 8.2% Tiszakécske 8 689 366 EUR 111,370 105,896 5.2% 600,159 545,882 9.9% 7.4% Almásfüzitő 1 695 358 EUR 112,766 103,159 9.3% 599,967 544,046 10.3% 7.6% Almásfüzitő 2 695 357 EUR 109,801 103,117 6.5% 582,794 543,715 7.2% 7.2% Almásfüzitő 3 695 357 EUR 108,923 102,952 5.8% 584,268 541,595 7.9% 7.7% Almásfüzitő 4 695 358 EUR 112,846 103,285 9.3% 601,013 545,082 10.3% 7.4% Almásfüzitő 5 695 358 EUR 112,879 103,007 9.6% 610,375 542,280 12.6% 7.7% Almásfüzitő 6 660 358 EUR 112,693 98,949 13.9% 605,881 522,051 16.1% 7.5% Almásfüzitő 7 691 357 EUR 112,096 102,418 9.4% 603,594 539,230 11.9% 7.4% Almásfüzitő 8 668 358 EUR 113,618 100,015 13.6% 587,736 527,928 11.3% 4.1% Nagyecsed 1 689 366 EUR 116,619 98,577 18.3% 592,799 533,276 11.2% 7.3% Nagyecsed 2 689 365 EUR 115,465 98,577 17.1% 589,141 533,276 10.5% 6.3% Nagyecsed 3 689 365 EUR 116,144 98,761 17.6% 594,640 533,789 11.4% 7.1% Fertod I 528 352 EUR 84,591 75,378 12.2% 465,348 401,849 15.8% 5.1% Fertod II No 2 699 356 EUR 112,661 103,004 9.4% 605,856 545,574 11.0% 7.6% Fertod II No 3 699 356 EUR 111,392 103,004 8.1% 601,261 545,574 10.2% 4.1% |
Project name | Capacity | Revenue1 | Prod. 2022 July |
Proj. 2022 July |
Perf. | YTD Prod. | YTD Proj. | Perf. | YTD YoY |
|---|---|---|---|---|---|---|---|---|---|---|
| Fertod II No 4 | 699 | 357 EUR | 110,328 | 103,004 | 7.1% | 597,442 | 545,574 | 9.5% | 4.6% |
| Project name | Capacity | Revenue | Prod. 2022 July |
Proj. 2022 July |
Perf. | YTD Prod. | YTD Proj. | Perf. | YTD YoY |
|---|---|---|---|---|---|---|---|---|---|
| Unit | kWp | per MWh, in July |
kWh | kWh | % | kWh | kWh | % | % |
| Fertod II No 5 | 691 | 356 EUR | 111,323 | 103,064 | 8.0% | 599,083 | 548,723 | 9.2% | 4.4% |
| Fertod II No 6 | 699 | 355 EUR | 106,095 | 103,004 | 3.0% | 593,926 | 545,574 | 8.9% | 3.7% |
| Kunszentmárton I No 1 | 697 | 363 EUR | 114,824 | 110,562 | 3.9% | 627,025 | 570,782 | 9.9% | 7.5% |
| Kunszentmárton I No 2 | 697 | 363 EUR | 114,903 | 110,568 | 3.9% | 622,834 | 570,847 | 9.1% | 7.1% |
| Kunszentmárton II No 1 | 693 | 361 EUR | 116,163 | 110,447 | 5.2% | 630,100 | 545,289 | 15.6% | 6.1% |
| Kunszentmárton II No 2 | 693 | 362 EUR | 116,428 | 110,447 | 5.4% | 633,302 | 545,585 | 16.1% | 6.3% |
| Taszár 1 | 701 | 359 EUR | 111,179 | 108,980 | 2.0% | 602,275 | 572,138 | 5.3% | 5.6% |
| Taszár 2 | 701 | 357 EUR | 114,719 | 108,980 | 5.3% | 613,310 | 572,138 | 7.2% | 7.4% |
| Taszár 3 | 701 | 357 EUR | 115,502 | 108,980 | 6.0% | 615,130 | 572,138 | 7.5% | 6.7% |
| Monor 1 | 688 | 359 EUR | 114,719 | 108,386 | 5.8% | 619,682 | 553,720 | 11.9% | 7.3% |
| Monor 2 | 696 | 359 EUR | 114,338 | 107,987 | 5.9% | 611,443 | 561,961 | 8.8% | 7.6% |
| Monor 3 | 696 | 359 EUR | 115,057 | 107,987 | 6.5% | 619,610 | 561,961 | 10.3% | 8.7% |
| Monor 4 | 696 | 359 EUR | 114,876 | 107,987 | 6.4% | 619,275 | 561,961 | 10.2% | 7.9% |
| Monor 5 | 688 | 359 EUR | 114,883 | 107,894 | 6.5% | 619,417 | 551,852 | 12.2% | 7.8% |
| Monor 6 | 696 | 359 EUR | 114,494 | 107,987 | 6.0% | 619,031 | 561,961 | 10.2% | 7.9% |
| Monor 7 | 696 | 359 EUR | 114,935 | 107,987 | 6.4% | 617,598 | 561,961 | 9.9% | 7.5% |
| Monor 8 | 696 | 359 EUR | 115,484 | 107,987 | 6.9% | 622,156 | 561,961 | 10.7% | 8.5% |
| Tata 1 | 672 | 365 EUR | 137,032 | 127,837 | 7.2% | 660,949 | 616,992 | 7.1% | 8.6% |
| Tata 2 | 676 | 358 EUR | 108,094 | 104,151 | 3.8% | 576,157 | 543,147 | 6.1% | 8.4% |
| Tata 3 | 667 | 358 EUR | 108,838 | 102,417 | 6.3% | 577,299 | 531,789 | 8.6% | 8.7% |
| Tata 4 | 672 | 365 EUR | 139,543 | 130,428 | 7.0% | 673,270 | 630,914 | 6.7% | 9.2% |
| Tata 5 | 672 | 365 EUR | 139,067 | 130,817 | 6.3% | 668,349 | 632,906 | 5.6% | 16.7% |
| Tata 6 | 672 | 365 EUR | 139,376 | 128,971 | 8.1% | 649,379 | 623,472 | 4.2% | 5.7% |
| Tata 7 | 672 | 365 EUR | 138,985 | 127,902 | 8.7% | 665,911 | 617,370 | 7.9% | 9.3% |
| Tata 8 | 672 | 365 EUR | 139,077 | 129,468 | 7.4% | 673,675 | 626,148 | 7.6% | 8.3% |
| Malyi 1 | 695 | 364 EUR | 115,233 | 104,332 | 10.4% | 589,859 | 541,257 | 9.0% | 6.9% |
| Malyi 2 | 695 | 364 EUR | 114,943 | 104,434 | 10.1% | 608,203 | 541,899 | 12.2% | 10.1% |
| Malyi 3 | 695 | 365 EUR | 114,576 | 104,434 | 9.7% | 608,724 | 541,899 | 12.3% | 10.2% |
| Puspokladány 1 | 1,406 | 88 EUR | 276,778 | 269,207 | 2.8% | 1,384,334 | 1,264,977 | 9.4% | 4.3% |
| Puspokladány 2 | 1,420 | 363 EUR | 282,646 | 266,015 | 6.3% | 1,426,831 | 1,233,252 | 15.7% | 6.4% |
| Puspokladány 3 | 1,420 | 381 EUR | 278,936 | 260,480 | 7.1% | 1,400,645 | 1,206,758 | 16.1% | 5.3% |
| Puspokladány 4 | 1,406 | 375 EUR | 275,610 | 267,583 | 3.0% | 1,389,863 | 1,257,053 | 10.6% | 4.8% |
| Puspokladány 5 | 1,420 | 376 EUR | 282,322 | 265,648 | 6.3% | 1,422,970 | 1,230,960 | 15.6% | 5.0% |
| Puspokladány 6 | 1,394 | 88 EUR | 274,507 | 266,836 | 2.9% | 1,382,166 | 1,245,492 | 11.0% | 5.1% |
| Puspokladány 7 | 1,406 | 88 EUR | 275,628 | 267,467 | 3.1% | 1,387,373 | 1,256,399 | 10.4% | 4.7% |
| Puspokladány 8 | 1,420 | 372 EUR | 277,901 | 261,110 | 6.4% | 1,397,322 | 1,210,015 | 15.5% | 4.9% |
| Puspokladány 9 | 1,406 | 88 EUR | 276,264 | 267,350 | 3.3% | 1,389,486 | 1,255,751 | 10.6% | 9.9% |
| Puspokladány 10 | 1,420 | 377 EUR | 278,194 | 260,290 | 6.9% | 1,398,279 | 1,205,760 | 16.0% | 5.0% |
| 7.2% | |||||||||
| Tolna 1 | 1,358 | 368 EUR | 307,193 | 286,560 | 1,463,709 | 1,389,319 | 5.4% | na | |
| Tolna 2 | 1,358 | 367 EUR | 316,700 | 286,560 | 10.5% | 855,352 | 801,155 | 6.8% | na |
| Total Hungarian PP | 51,814 | 9,294,299 | 8,704,697 | 6.8% | 47,398,802 | 42,848,134 | 10.6% | 12.5% | |
| Symonston | 144 | 240 EUR | 8,240 | 8,088 | 1.9% | 80,212 | 90,976 | -11.8% | -10.4% |
| Leeton | 7,261 | 217 EUR | 755,856 | 772,120 | -2.1% | 6,891,976 | 7,685,380 | -10.3% | na |
| Fivebough | 7,261 | 216 EUR | 740,152 | 755,205 | -2.0% | 6,800,052 | 7,578,915 | -10.3% | Na |
| Total Australian PP | 14,744 | 1,504,248 | 1,535,413 | -2.0% | 13,772,240 | 15,355,271 | -10.3% | Nm | |
| Total | 91,905 | 14,520,994 | 13,818,718 | 5.1% | 80,533,201 | 76,003,334 | 6.0% | 35.1% |
Notes:
Capacity: installed capacity of the power plant
Prod.: production in the reporting month - Proj.: projection in the reporting month Perf.: performance of the power plant in reporting month i.e. (production in Month / pro-
jection for Month) - 1. YTD Prod.: accumulated production year-to-date i.e. from January until the end of the
reporting month.
YTD Proj.: accumulated projection year-to-date i.e. from January until the end of the reporting month.
Perf. YTD: performance of the power plant year-to-date i.e. (YTD prod. in 2022 / YTD proj. in 2022) – 1.
YTD YOY: (YTD Prod. in 2022 / YTD Prod. in 2021) – 1.
- Green Bonus + realized electricity price during the reporting period in the Czech Republic.
- Realized electricity price in Hungary.
1
- Realized electricity price + Australian Large-scale Generation Certificate spot closing price in Australia.
Chart 1.a Total production of the Czech portfolio Chart 1.b Total production of the Slovak portfolio
Chart 1.c Total production of Hungarian portfolio Chart 1.d Total production of Australian portfolio
The Company reports 80.5 GWh of electricity produced YTD compared to 59.6 GWh one year ago (+35.1%) propelled by the addition of two new power plants in Tolna, Hungary (1.4 MWp added in December 2021 and 1.4 MWp added in May 2022) and of our two utility-scale PV power plants in Leeton, Australia (14.6 MWp connected to the grid in August 2021). This represents an avoidance of 31,647 tonnes of CO2 emissions year-to-date.
With over 80% of the Company's power plant portfolio selling electricity directly to the grid at market prices, the Company achieved a revenue of EUR 21.301 million in the first seven months of 2022, compared to EUR 19.402 million for the full year 2021.
In July the proprietary portfolio outperformed the audits by 5.1%. Our Czech, Slovak, and Hungarian portfolios exceeded energy
0 5,000 10,000 15,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Cumulative production in MWh
Q1 Q2 July
forecasts by 3.8%, 4.3% and 6.8%, respectively, while our Australian portfolio was short of estimates by 2.0%. The specific performance ratio of the proprietary portfolio (SPR) reached 158.0 kWh/kWp compared to 161.4 kWh/kWp one year ago (-2.1% yearon year).
Further to the release of its second quarter and first half results for 2022, and driven by the great momentum in direct electricity sales into the market, Photon Energy's management board raised its full-year 2022 guidance with revenue expectations of EUR 85 million from the previously communicated EUR 65 million (up 133.8% YoY) leading to an EBITDA of EUR 24 million from the previous EUR 18 million (up 150.4% YoY).
| Portfolio | Capacity | Prod. July | Avg. Revenue July |
Total Revenue July |
YTD Avg. Reve nue |
YTD Revenue |
|---|---|---|---|---|---|---|
| Unit | MWp | MWh | EUR/MWh | In Euro thousand | EUR/MWh, in 2022 | In Euro thousand |
| Czech Republic | 15.0 | 2,183 | 854 | 1,864 | 780 | 8,951 |
| Slovakia | 10.4 | 1,540 | 264 | 294 | 263 | 1,500 |
| Hungary | 51.8 | 9,294 | 331 | 3,081 | 191 | 9,062 |
| Australia | 14.7 | 1,504 | 217 | 326 | 130 | 1,787 |
| Total Portfolio | 91.9 | 14,521 | 391 | 5,565 | 201 | 21,301 |
Table 2. Estimated Revenues from Electricity Generation in July 2022*
* Estimates for revenues are based on management reporting and may deviate from published financial statements due to exchange rates.
** Slovak joint-ventures SK SPV 1 s.r.o., Solarpark Polianka s.r.o., and Solarpark Myjava s.r.o. are consolidated at equity only and therefore not presented in the above table.
3. Reporting on Photon Energy's project pipeline
Project development is a crucial activity in Photon Energy's business model of covering the entire value chain of PV power plants. The main objective of project development activities is to expand the PV proprietary portfolio, which provides recurring revenues and free cash flows to the Group. For financial or strategic reasons Photon Energy may decide to cooperate with third-party investors either on a joint-venture basis or with the goal of exiting the projects to such investors entirely. Ownership of project rights provides Photon Energy with a high level of control and allows locking in EPC (one-off) and O&M (long-term) services. Hence, project development is a key driver for Photon Energy's future growth. The Group's experience in project development and financing in the Czech Republic, Slovakia, Germany, Italy and Hungary is an important factor in selecting attractive markets and reducing the inherent risks related to project development.
Photon Energy is currently developing PV projects in Australia (300.0 MWp), Hungary (25.8 MWp), Romania (235.4 MWp) and Poland (263.9 MWp) and is evaluating further markets for opportunities.
| Country | 1. Feasibility* | 2. Early development |
3. Advanced development |
4. Ready-to-build technical |
5. Under construction |
Total in MWp |
|---|---|---|---|---|---|---|
| Romania | 33.2 | 81.5 | 87.9 | 16.3 | 16.5 | 235.4 |
| Poland | 234.0 | 29.9 | - | - | - | 263.9 |
| Hungary | - | 23.1 | 2.7 | - | - | 25.8 |
| Australia | - | 300.0 | - | - | - | 300.0 |
| Total in MWp | 267.2 | 434.5 | 90.6 | 16.3 | 16.5 | 825.1 |
*Development phases are described in the glossary available at the end of this chapter.
PV projects have two definitions of capacity. The grid connection capacity is expressed as the maximum of kilowatts or megawatts which can be fed into the grid at any point in time. Electricity grids run on alternating current (AC). Solar modules produce direct current (DC), which is transformed into AC by inverters. Heat, cable lines, inverters and transformers lead to energy losses in the system between the solar modules and the grid connection point. Cumulatively system losses typically add up to 15-20%. Therefore, for a given grid connection capacity a larger module capacity
(expressed in Watt peak – Wp) can be installed without exceeding the grid connection limit. At times of extremely high production, inverters can reduce the volume of electricity so that the plant stays within the grid connection limits. Photon Energy will refer to the installed DC capacity of projects expressed in Megawatt peak (MWp) in its reporting, which might fluctuate over the project development process.
Projects having reached an advanced development phase, as well as projects for which sufficient details can be disclosed are described in the table below:
| Country | Location | Dvt Phase |
Project function |
Share | MWp | Commercial Model |
Land | Grid con nection |
Construction permit |
Expected RTB |
|---|---|---|---|---|---|---|---|---|---|---|
| Romania | Siria | 5 | Own portfolio |
100% | 5.7 | Merchant/PPA | Secured | Secured | Secured | Under con struction |
| Romania | Aiud | 5 | Own portfolio |
100% | 4.7 | Merchant/PPA | Secured | Secured | Secured | Under con struction |
| Romania | Calafat | 5 | Own portfolio |
100% | 6.1 | Merchant/PPA | Secured | Secured | Secured | Under con struction |
| Romania | Teius | 3 | Own portfolio |
100% | 4.7 | Merchant/PPA | Secured | Ongoing | Secured | Q3 2022 |
| Romania | Sahateni | 3 | Own portfolio |
100% | 12.0 | Merchant/PPA | Secured | Secured | Secured | Q3 2022 |
| Hungary | Tolna 3-4 | 3 | Own portfolio |
100% | 2.7 | Merchant/PPA | Secured | Secured | Secured | Q3 2022 |
| Hungary | Tolna 5-13 | 2 | Own portfolio |
100% | 23.1 | Merchant/PPA | Ongoing | Secured | Secured | Q4 2022 |
| Australia | Yadnarie | 2 | All options open |
100% | 300.0 | All options open | Secured | Ongoing | Ongoing | Q4 2023 |
Australia
During the reporting period, Photon Energy had one large scale solar farm under development.
In November 2021, the Group secured 1,200 hectares of land in South Australia to develop a 300 MWp solar farm suitable for Ray-Gen's solar technology in combination with its energy storage solution.
► Development status Raygen project (300 MWp): Based on preliminary designs, Photon Energy will develop a solar generation capacity of 300 MWp with a grid connection capacity of 150 MW. The target storage energy storage capacity is 3.6 GWh, equivalent to 24 hours of full load, to the grid, from storage. This will exceed the 3 GWh capacity of the Ouarzazate Solar Power Station in Morocco, which currently has the world's largest energy storage capacity of any type, excluding pumped hydro.
The project received Crown Sponsorship from the South Australian Government for development approval. Crown Sponsorship is a development process undertaken directly with, in this case, the Department of Energy and Mining, as a development of public infrastructure under section 49(2)(c) of the Development Act 1993 for the approval of the project with the South Australian Government. The proposed development complies with the requirements of the Technical Regulator in relation to the security and stability of the State's power system. In parallel, Photon Energy has applied for grid connection for the project to the Electranet transmission network and has engaged a grid connection consultant to manage the process and conduct Grid Performance Studies which will be submitted for approval.
In Q1 2022, Photon Energy conducted already Community consultation sessions with very positive response from both the community and the local council. The local council is very supportive of the project and has expressed interest in working with Photon Energy on accommodation and local supply chain in any areas that will be mutually beneficial to both the local community and the project.
Hungary
Below is a short summary of projects and progress achieved in the reporting period.
► Tolna 3-13 projects (25.8 MWp under development, 1.4 MWp commissioned on 9 December 2021 and 1.4 MWp commissioned on 5 May 2022): In total thirteen projects with a total planned installed DC capacity of 28.6 MWp are located in the Tolna region in the south of Hungary. Two power plants have a grid connection capacity of 5.0 MW AC each, whereas 1 MW AC have been secured for each of the remaining eleven projects. The grid connection points have been secured and the negotiations for suitable land plots have been finalized for several projects. Grid connection plans have been initiated and already partially approved, to allow us to conclude grid connection agreements with E.ON. with a validity of two years.
On 8 December 2020, one of the 1MW AC (approx. 1.4 MWp DC) projects was granted a METAR premium of 24,470 HUF/MWh (approx. EUR 68 per MWh) with a maximum supported production of 21,585 MWh over a period of up to 15 years. This achievement results from the approval of the project application to the first pilot tender for the METAR system organized in September 2019. Outside this project, two power plants have been constructed and commissioned to date, with a third one in advanced development after securing the binding extraction and construction permits.
The revenue model will be the direct sale of electricity through a trader on the Hungarian electricity market for the time being. Entering into a contract-for-difference based on a METÁR license (for the project that has proven successful through the auction process) or entering into PPAs in the future, remain possible options. Construction plans include the use of tracking technology allowing bi-facial solar modules to follow the course of the sun, which are expected to achieve a 15-20% higher specific performance than fixed installations.
On 9 December 2021, we completed and grid-connected the first photovoltaic power plant with a capacity of 1.4 MWp near the municipality of Tolna.
On 5 May 2022, we completed and grid-connected the second photovoltaic power plant with a capacity of 1.4 MWp near Tolna.
These latest additions expand the Company's portfolio of proprietary power plants in Hungary to a total of 63, with a combined capacity of 51.8 MWp.
The new power plants represent the first European utilityscale PV power plants in Photon Energy Group's IPP portfolio that the Company operates without a support scheme. The total annual production of each power plant is expected to be around 2.1 GWh, which corresponds to expected annual revenues of EUR 440,000 based on current forward prices for electricity base load in Hungary.
Each of these new power plants extends over 2.2 hectares, uses bi-facial PV modules mounted on single-axis trackers and is connected to the grid of E.ON Dél-dunántúli Áramhálózati Zrt..
The electricity is sold on the national electricity market on a merchant basis. This means no power purchase agreements (PPAs) have been entered into by the Company. However, they may play a role in the plant's future revenue management strategy, alongside other hedging options.
The Company developed the projects fully in-house and delivered engineering, procurement and construction services through its subsidiary Photon Energy Solutions HU Kft. Photon Energy Operations HU Kft. – another of the Group's subsidiaries – will provide long-term monitoring, operations and maintenance services to the power plants.
Romania
Below is a short summary of projects and progress achieved in the reporting period.
► Siria (5.7 MWp) project:
In June 2022, the Company broke ground on the construction of its very first Romanian PV power plant with a generation capacity of 5.7 MWp. High efficiency bifacial solar modules mounted on single-axis trackers will deliver around 8.7 GWh of renewable energy annually to the grid of Enel E-Distributie Banat. Located near Șiria in Romania's Arad County, the power plant will extend over 9.3 hectares of greenfield land and will be equipped with some 10,600 solar panels. The project is starting to take shape as we have just completed the mounting structures and installed half of the total of 10,600 solar modules.
► Aiud (4.7 MWp) project:
In July 2022, the Company announced that it started the construction of its second Romanian PV power plant in Aiud with a capacity of 4.7 MWp and an expected annual generation of 6.8 GWh that will be delivered to the grid of Distribuție Energie Electrică Romania. Located near Aiud in Romania's Alba County, the power plant will extend over 6.6 hectares of greenfield land and will be equipped with around 8,700 solar panels.
► Calafat (6.1 MWp) project:
In July 2022, the Company announced that it started the construction of another three Romanian PV power plant in Calafat with a combined capacity of 6.1 MWp and an expected annual generation of 9.6 GWh that will be delivered to the grid of Distribuție Energie Oltenia.
The five power plants are scheduled to commence operations in the fourth quarter of 2022 and to sell electricity on the energy market on a merchant basis, that is without any support or a power purchase agreement with an energy offtaker.
Upon the commissioning of these plants, the Company will own and operate 93 solar power plants with a combined generation capacity of 108.3 MWp in its IPP portfolio. A combined 92 MWp will be selling subsidy-free clean electricity directly on the energy market.
The Company is currently developing utility-scale solar PV projects with a combined capacity of 235.4 MWp in Romania. The remaining project development pipeline is expected to be built and commissioned in 2023 and 2024 and thus the Romanian market will significantly contribute to the Company's goal of expanding its IPP portfolio to at least 600 MWp globally by the end of 2024.
All projects to be built in Romania will be selling electricity after grid connection on a merchant basis into the grid.
| Glossary of terms | Definitions |
|---|---|
| Development phase 1: "Feasibility" |
LOI or MOU signed, location scouted and analyzed, working on land lease/purchase, environmental assessment and application for grid connection. |
| Development phase 2: "Early development" |
Signing of land option, lease or purchase agreement, Environmental assessment (environmental impact studies "EIS" for Aus tralia), preliminary design. Specific to Europe: Application for Grid capacity, start work on permitting aspects (construction, connection line, etc.). Specific to Australia: community consultation, technical studies. |
| Development phase 3: "Advanced development" |
In Europe: Finishing work on construction permitting, Receiving of MGT (HU)/ATR (ROM) Letter, Finishing work on permitting for connection line, etc. In Australia: Site footprint and layout finalised, Environmental Impact Statement and development application lodged. Grid con nection studies and design submitted. |
| Development phase 4: "Ready-to-build technical" |
In Europe: Project is technical ready to build, we work on offtake model (if not FIT or auction), securing financing (internal/exter nal). In Australia: Development application approved, offer to connect to grid received and detailed design commenced. Financing and off-take models/arrangements (internal/external) under negotiation. |
| Development phase 5: "Under construction" |
Procurement of components, site construction until the connection to the grid. On top for Australian projects, signature of Financ ing and off-take agreements, reception of Construction certificate, conclusion of connection agreement, EPC agreement, Grid connection works agreements. |
4. Enterprise value & Share price performance
4.1 Main market of the Warsaw Stock Exchange
On 31 July 2022 the Company's shares (ISIN NL0010391108) closed at a price of PLN 13.13 (+34.7% MoM), corresponding to a price to book ratio of 3.06. The monthly trading volume amounted to 708,097 shares (vs. an average monthly volume of 412,196 over the past twelve months).
Chart 5. Enterprise value vs. trailing 12 months (TTM) EBITDA
Notes:
EV – Enterprise value is calculated as the market capitalisation as of the end of the reporting month, plus debt, plus minority interest, minus cash. All the balance sheet data are taken from the last quarterly report. Trailing 12 months EBITDA – defined as the sum of EBITDA reported in the last four quarterly reports; i.e. the sum of EBITDA reported in Q3 2021, Q4 2021, Q1 2022 and Q2 2022.
Trading of the Company's shares on the regulated market of the Warsaw Stock Exchange (WSE) (Giełda Papierów Wartościowych w Warszawie) commenced on 5 January 2021. Prior to that date, data presented in this section have been extracted from the trading activity on NewConnect.
Price/book ratio – is calculated by dividing the closing price of the stock as of the end of the reporting period by the book value per share reported in the latest quarterly report.
EV/EBITDA ratio – is calculated by dividing the Enterprise Value by the Trailing 12 months (TTM) EBITDA.
Chart 7. Total monthly volumes vs. daily closing stock prices
4.2 Main market of the Prague Stock Exchange
On 31 July 2022 the share price (ISIN NL0010391108) closed at a level of CZK 68.20 (+31.7% MoM), corresponding to a price to book ratio of 2.89. The Company reports a monthly trading volume of 364,050 shares, compared to an average monthly trading volume of 395,107 over the past twelve months.
Trading of the Company's shares on the regulated market of the Prague Stock Exchange (PSE) (Burza cenných papírů Praha) commenced on 5 January 2021. Prior to that date, Data have been extracted from the trading activity on the Free Market of the Prague Stock Exchange.
4.3 Quotation Board of the Frankfurt stock exchange
On 31 July 2022, the share price (FSX: A1T9KW) closed at a level of EUR 2.92 (+41.4% compared to last month), corresponding to a price to book ratio of 3.04.
The Company reports a monthly trading volume of 73,055 shares, compared to an average monthly trading volume of 34,068 over the past twelve months.
The Company's shares have been traded on the Quotation Board of the Frankfurt Stock Exchange since 11 January 2021.
Since 28 July 2020, the Company's shares have already been traded on the Free Market (Freiverkehr) of the Munich Stock Exchange.
In addition the Company's shares have also been traded on the Free Market (Freiverkehr) of the Berlin Stock Exchange since 13 January 2021 and on the Free Market (Freiverkehr) of the Stuttgart Stock Exchange since 14 January 2021.
5. Bond trading performance
In December 2016 the Company issued a 7-year corporate bond with a 6% annual coupon and monthly payments in the Czech Republic. The corporate bond (ISIN CZ0000000815) with a nominal value of CZK 30,000 has been traded on the Free Market of the Prague Stock Exchange since 12 December 2016.
On 27 October 2017 the Company issued a 5-year corporate EUR bond with a 7.75% annual coupon and quarterly coupon payments in Germany, Austria and Luxemburg. The original target volume of EUR 30 million was successfully increased in two steps with all parameters unchanged, to an outstanding amount of EUR 45.0 million prior to the completion of the exchange offer described below. The corporate bond (ISIN DE000A19MFH4) with a nominal value of EUR 1,000 has been traded on the Open Market of the Frankfurt Stock exchange since 27 October 2017. The bond is also listed on the stock exchanges in Berlin, Hamburg, Hannover, Munich and Stuttgart. The total outstanding bond volume amounts to EUR 20.956 million as of the reporting date.
On 17 November 2021, The Company successfully placed its 6.50% Green EUR Bond 2021/2027 (ISIN: DE000A3KWKY4) in the amount of EUR 50 million. The bond issuance was met with strong demand from the Company's existing bondholders, who subscribed to EUR 21.281 million in the exchange that was offered
5.1 EUR Bond 2017/22 trading performance in Frankfurt
EUR Bond 2017/22 trading performance to date
In the trading period from 25 October 2017 until 31 July 2022, the trading volume amounted to EUR 32.125 million with an opening price of 100.00 and a closing price of 100.90 in Frankfurt. During this period the average daily turnover amounted to EUR 26,638.
for the existing EUR Bond 2017/2022. The green bond – with an interest rate of 6.50% p.a., paid quarterly – was confirmed by imug | rating with regard to its sustainability in a Second Party Opinion, and can be traded on the Open Market of the Frankfurt Stock Exchange.
On 29 November 2021, the Group successfully increased the bond placement by EUR 5.0 million with all parameters unchanged. The total outstanding bond volume amounts to EUR 55.0 million as of the end of the reporting period.
In May 2022, the Company successfully tapped its 6.50% Green EUR Bond 2021/2027 (ISIN: DE000A3KWKY4) in the amount of EUR 10 million to a total outstanding amount of EUR 65 million.
The Company intends to use the net proceeds of the green bond placement to finance or refinance, in part or in whole, new and/or existing eligible assets, as well as financial instruments that were used to finance such projects or assets, in accordance with the Company's Green Finance Framework, enabling Photon Energy Group to make a significant contribution to an environmentally friendly future.
EUR Bond 2017/22 trading performance in July 2022
In July 2022 the trading volume amounted to EUR 337,000 in Frankfurt with an opening price of 100.00 and a closing price of 100.90. The average daily turnover amounted to EUR 16,048.
Chart 8. The Company's EUR bond 2017/22 trading on the Frankfurt Stock Exchange in Germany
0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 95 96 97 98 99 100 101 102 103 104 105 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Monthly turnover - right axis closing price - left axis
5.2 Green EUR Bond 2021/27 trading performance in Frankfurt
Green EUR Bond 2021/27 trading performance to date
In the trading period from 17 November 2021 until 31 July 2022, the trading volume amounted to EUR 7.015 million with an opening price of 100.00 and a closing price of 99.99 in Frankfurt. During this period the average daily turnover amounted to EUR 36,728.
5.3 CZK Bond 2016/23 trading performance in Prague
In the trading period from 12 December 2016 until 31 July 2022, the trading volume amounted to CZK 40.500 million with a closing price of 98.00.
Green EUR Bond 2021/27 trading performance in July 2022
In July 2022 the trading volume amounted to EUR 344,000 in Frankfurt with an opening price of 99.00 and a closing price of 99.99. The average daily turnover amounted to EUR 16,381.
6. Investors' calendar
- ► 5-6 September 2022: Equity Forum in Frankfurt
- ► 13 September 2022: AlsterResearch Renewables Conference, online presentation
- ► 14 September 2022: Monthly report for August 2022
- ► 27 September 2022: Pekao RES Energy Conference
- ► 13 October 2022: Monthly report for September 2022
- ► 10 November 2022: Entity and consolidated quarterly reports for Q3 2022
- ► 14 November 2022: Online presentation of Photon Energy Group's Q3 2022 results
- ► 14 November 2022: Monthly report for October 2022
- ► 28-30 November 2022: Deutsches Eigenkapitalforum, Frankfurt
- ► 14 December 2022: Monthly report for November 2022
7. Investor relations contact
Emeline Parry, Investor relations & Sustainability manager E-mail: [email protected]
Photon Energy N.V. Barbara Strozzilaan 201 1083 HN Amsterdam The Netherlands Web: www.photonenergy.com
Amsterdam, 12 August 2022
Georg Hotar, Member of the Board of Directors Michael Gartner, Member of the Board of Directors