Amsterdam-based clean power and water sector company Photon Energy NV has revised its 2024 EBITDA forecast in light of recent regulatory changes and an uncertain outlook for the remainder of the year, despite reporting an 18.9% increase in revenue and nearly double the earnings during the third quarter.
During the July-September period, Photon Energy recorded consolidated revenue of EUR 22.8 million (USD 24.1 million), up from EUR 19.2 million in the same period a year earlier. EBITDA rose to EUR 3.8 million, up from EUR 1.9 million year-over-year. For the first nine months of 2024, revenue grew by 7.9% year-over-year to EUR 64.1 million, while EBITDA more than doubled to EUR 9.85 million.
The revenue increase was driven by growth in electricity generation, recovery of energy prices, and strong revenues from capacity market contracts and engineering, procurement, and construction (EPC) business. The higher EBITDA was supported by an increasing share of high-margin business.
As of the end of September, Photon Energy's independent power producer (IPP) portfolio comprised up to 141 MWp. The company noted it has 3.2 MWp scheduled to be connected in the fourth quarter and 5.1 MWp of solar projects under construction in Hungary.
Electricity generation during the third quarter stood at 55.3 GWh, representing an increase of about 12.2% compared to the same period in 2023, although it fell short of the 14.2% IPP portfolio expansion. The total nine-month power production was up by 23.2% to 142.1 GWh.
Despite these positive results, Photon Energy has decided to revise its full-year guidance to EUR 90 million in revenue and EBITDA of EUR 10 million. In its previous financial statement, the company had anticipated revenue in the range of EUR 90 million to 100 million, with EBITDA between EUR 16 million and EUR 18 million.
This revision is attributed to challenging regulatory decisions, including a revised sales price mechanism, a shorter testing period, and amended compensation policy in Romania. In the Czech Republic, there are also proposed measures that could deter investors, such as the removal of state support for renewable electricity production during periods of negative electricity prices.
