Earnings Release • Oct 31, 2024
Earnings Release
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MPC Energy Solutions continues revenue growth and margin improvements in third quarter, surpasses full-year performance of 2023
Amsterdam/Oslo -- 31 October 2024 -- MPC Energy Solutions ("MPCES", "Company")
published its financial results for the third quarter and first nine months of
2024 today.
The third quarter was marked by a strong increase in energy output, resulting
in surging revenues and operating profits and continuing the trend reported in
previous quarters. An increase of proportionate energy output to 89.8 GWh
(+37% year-over year) led to proportionate project revenues and EBITDA of USD
9.7 million and USD 6.5 million, respectively, up from USD 6.8 million (+43%
year-over-year) and USD 3.0 million (+114% year-over-year) in the first nine
months of 2023, already surpassing the full-year numbers of 2023 as well.
"Most of our portfolio continues to deliver very good results, with increasing
and robust energy output figures", said Stefan H.A. Meichsner, Chief Financial
Officer of MPCES. "Furthermore, our operating margins continue to improve.
Paired with the lower overhead cost base we have now established, we are
quickly approaching positive operating margins on group level."
Proportionate revenues for the third quarter were reported at USD 3.6 million
(Q3 2023: USD 2.8 million). The Company also reported a positive group EBITDA
of USD 3.1 million year-to-date, compared to a negative group EBITDA of USD
1.1 million during the same period a year ago. The Company's overhead spending
is down 30% year-over-year following successfully implemented cost reduction
measures.
Impairments on CHP plant in Puerto Rico and adjusted guidance
As previously reported, its CHP plant in Puerto Rico has seen very little
energy output in 2024, caused by low energy demand from the off-taker, a local
pharmaceutical company. MPCES has decided to halt production as the Company
does not expect the situation to improve in the near future. Following
anticipated financial constraints of the off-taker, MPCES is in the process of
selling the asset and exiting the market. First impairment charges of USD 0.8
million have been recorded in the third quarter of 2024, and the Company
expects additional impairments following the sale.
As a consequence of the stopped production, MPCES has made a slight downward
adjustment to its full-year guidance. The Company now expects proportionate
revenues to be between USD 11.5 million and USD 12 million and proportionate
project EBITDA between USD 7.5 million and USD 8 million, aiming for the
higher end of both ranges given the solid performance from its remaining
portfolio. The previous guidance had proportionate revenues at USD 12 million
and proportionate project EBITDA and USD 8.5 million.
An exit from the CHP plant in Puerto Rico has been on the agenda for quite
some time and is not expected to have any effects on any other projects. MPCES
is optimizing its operations focusing on core markets with the highest
yielding projects.
For Q3 2024 and year-to-date 2024, the MPCES Group reported the following key
financials (unaudited):
+----------------------------------------+---------------+-------------------+
| in thousand USD unless stated | | |
| otherwise, negative values in "()" | | |
+----------------------------------------+---------------+-------------------+
| | | |
| Proportionate financials by quarter, | | |
| 2024 vs. 2023 | | |
+----------------------------------------+---------------+-------------------+
| | | Q3 2024 |
| | | |
+----------------------------------------+---------------+-------------------+
| Revenue | | 3,613 |
| | | |
+----------------------------------------+---------------+-------------------+
| Project EBITDA / EBITA | | 2,648 / 1,929 |
| | | |
+----------------------------------------+---------------+-------------------+
| Group EBITDA / EBITA | | 1,575 / 856 |
| | | |
+----------------------------------------+---------------+-------------------+
| | | |
| | | Q3 2023 |
| | | |
+----------------------------------------+---------------+-------------------+
| Revenue | | 2,785 |
| | | |
+----------------------------------------+---------------+-------------------+
| Project EBITDA / EBITA | | 1,158 / 461 |
| | | |
+----------------------------------------+---------------+-------------------+
| Group EBITDA / EBITA | | (384) / (1,081) |
| | | |
+----------------------------------------+---------------+-------------------+
| | | |
| | | |
+----------------------------------------+---------------+-------------------+
| Proportionate financials for YTD, 2024 | | |
| vs. 2023 | | |
+----------------------------------------+---------------+-------------------+
| | YTD 2024 | YTD 2023 |
| | | |
+----------------------------------------+---------------+-------------------+
| Revenue | 9,717 | 6,809 |
+----------------------------------------+---------------+-------------------+
| Project EBITDA / EBITA | 6,537 / 4,321 | 3,049 / 1,120 |
+----------------------------------------+---------------+-------------------+
| Group EBITDA / EBITA | 3,606 / 1,390 | (1,147) / (3,076) |
+----------------------------------------+---------------+-------------------+
| | | |
| | | |
+----------------------------------------+---------------+-------------------+
| Consolidated financials YTD, 2024 vs. | | |
| 2023 | | |
+----------------------------------------+---------------+-------------------+
| | YTD 2024 | YTD 2023 |
| | | |
+----------------------------------------+---------------+-------------------+
| Revenue | 8,877 | 6,859 |
+----------------------------------------+---------------+-------------------+
| Project EBITDA / EBITA | 5,984 / 3,768 | 3,060 / 1,131 |
+----------------------------------------+---------------+-------------------+
| Group EBITDA / EBITA | 3,053 / 837 | (1,136) / (3,065) |
+----------------------------------------+---------------+-------------------+
| Net income / (loss) | (5,040) | (4,781) |
+----------------------------------------+---------------+-------------------+
| Net income / (loss) excl. FX effects | (2,721) | (6,627) |
| and impairments | | |
+----------------------------------------+---------------+-------------------+
| EPS (basis and diluted), in USD | (0.22) | (0.22) |
+----------------------------------------+---------------+-------------------+
| EPS (basis and diluted), in USD excl. | (0.12) | (0.30) |
| FX effect | | |
+----------------------------------------+---------------+-------------------+
| Total assets (in million USD) | 124.3 | 129.3 |
+----------------------------------------+---------------+-------------------+
| Equity (in million USD) | 61.5 | 74.0 |
+----------------------------------------+---------------+-------------------+
| Equity ratio (in%) | 49% | 57% |
+----------------------------------------+---------------+-------------------+
| Free cash position (in million USD) | 2.1 | 8.8 |
+----------------------------------------+---------------+-------------------+
| Debt (in million USD) | 51.8 | 44.5 |
+----------------------------------------+---------------+-------------------+
MPC Energy Solutions -- Invitation to webcast -- Q3 2024 results
A webcast for the investment community will be held today, Thursday, 31
October 2024 at 2:00 p.m. CET. There will be a Q&A session after the
presentation, and a recording and written transcript of the webcast will be
published on the Company's website afterwards.
From 2:00 p.m. CET today, the presentation to be reviewed during the webcast
will be available on our website:
https://www.mpc-energysolutions.com/investors/reports-presentations
Q3 webcast information:
Date: 31 October 2024
Time: 2:00 p.m. CET
Duration: 45 minutes incl. Q&A
Sign up for and access the webcast here:
https://hca.videosync.fi/2024-10-31-mpces-q3-2024/register
For further information, please contact [email protected].
- ENDS -
About MPC Energy Solutions
MPC Energy Solutions ("MPCES") develops, builds, owns and operates renewable
energy assets, including utility-scale solar photovoltaics (PV) and onshore
wind farms and hybrid projects, combining renewable sources and storage
technologies. More details at www.mpc-energysolutions.com
(http://www.mpc-energysolutions.com/)
Media contacts
MPC Energy Solutions N.V.
Investor Relations & Public Relations
Email: [email protected] ()
Norway
Mats Samdahl Weltz
Salto Advisers
Phone: +47 950 46330
Email: [email protected]
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