Spanish solar energy specialist, Soltec Power Holdings SA, reported a 93% year-on-year decline in adjusted EBITDA to EUR 0.6 million (USD 643,310) for the first nine months of 2023. However, a notable recovery in its solar trackers manufacturing division, Soltec Industrial, during Q3 has kept the group optimistic for the remainder of the fiscal year.
In its income statement released on Tuesday, Soltec disclosed consolidated revenues of EUR 304.1 million for January through September, marking a 24.6% drop compared to the same period last year. The statement did not provide net profit figures.
While the results appear challenging when compared to the previous year, Soltec noted a quarter-on-quarter improvement. Revenues gradually increased from EUR 76.8 million in Q1 to EUR 119.6 million in Q3. The strong performance of the solar trackers manufacturing division, Soltec Industrial, contributed to a Q3 adjusted EBITDA of EUR 10.8 million, following losses in the previous two quarters.
Soltec Industrial faced challenges during the first half, attributed to the seasonality of the manufacturing business and regulatory issues in the US and Spain. However, an increase in tracker volumes in the later part of the year allowed Soltec Industrial to improve its EBITDA margin to 8.6% in Q3.
Soltec Industrial delivered over 1.7 GW of solar trackers between January and September, indicating a positive trend for the division.
While Soltec Development, the project development division, recorded losses of adjusted EBITDA proforma throughout 2023, Soltec Assets, operating as an independent power producer (IPP), brought positive results.
Despite the mixed performance of its divisions, Soltec confirmed its guidance for 2023, expecting consolidated EBITDA to range between EUR 45 million and EUR 60 million. Soltec Development is anticipated to recover and post EBITDA of EUR 25 million to EUR 35 million, while Soltec Assets is projected to end the year with an EBITDA margin in the 70%-75% range.