Spanish solar energy specialist Soltec Power Holdings SA is navigating significant financial challenges, leading the company to delay the release of its earnings report for the first half of 2024 and initiate restructuring efforts within its solar tracker division.
On Thursday, Soltec announced that it would not publish its first-half earnings report as planned due to the need for a “more detailed and thorough review” with its auditor. This review aims to accurately reflect the impact of project delays and valuation adjustments for two Brazilian solar assets that are currently marked for sale. The company estimates that it has generated revenues between EUR 250 million (USD 279.5 million) and EUR 260 million during the six-month period.
In response to these developments, the Spanish stock market watchdog CNMV has suspended Soltec's shares from trading until the results are disclosed.
The company also disclosed financial difficulties within its solar tracker division, Soltec Energias Renovables, which is struggling to repay a EUR 90 million revolving credit facility and a EUR 110 million guarantee line. Earlier this year, 12 banks agreed to extend the maturity of these financial obligations until September 30, 2024, with an implicit extension until November 30. However, one bank has opted not to extend this tacit extension.
Soltec has initiated negotiations with creditors to reach a restructuring agreement for its solar tracker division. These financial troubles have been exacerbated by internal issues, as an investigation into annual accounts published on April 1 uncovered accounting irregularities. This led to disciplinary actions, management changes, and procedural adjustments, further contributing to the delay in the publication of this year's first-half results.
In light of these challenges, Soltec is developing a new strategic plan focused on higher value-added activities, including tracker supply, solar project development, and cash generation. CEO Mariano Berges emphasized the company's strong position in the solar tracker division, stating, “We have a strong position in our solar tracker division, with over 20 GW in projects. We work with top-tier clients and are present in key global photovoltaic energy markets. The company is taking all necessary operational and financial measures to focus on businesses with higher margins and profitability. We have a proven track record, cutting-edge technology, and are well-positioned to drive future growth.”
