Renewable independent power producer (IPP) Alternus has released its first-quarter financial results, revealing a decline in profit amounting to $1 million. The decrease in power production by 15% to 25.8MWh during the period can be attributed primarily to weather variances compared to the previous year.
The company witnessed a notable increase in operating expenses, which rose by $2.1 million (55%). This uptick was mainly driven by higher operating costs associated with supporting the expansion of the business and one-time expenses related to the planned business combination with Clean Earth Acquisitions.
Vincent Browne, Chairman and Group CEO of Alternus, acknowledged the impact of weather on the modest variance in production and revenue for the first quarter. Browne emphasized that the stability seen in their results underscores a key aspect of Alternus' business model, stating, “Once owned and in service, our solar parks generate a steady stream of power at steady prices literally for decades.”
Browne further highlighted the predictability of Alternus' solar parks as valuable assets, generating high-margin cash flows that can be utilized to fund internal growth and various monetization strategies. He expressed the company's eagerness to finalize the business combination with Clean Earth, stating, “We look forward to closing the business combination with Clean Earth soon.”
However, Browne noted that the anticipated closing of the deal would be delayed until the third quarter due to unforeseen circumstances beyond their control. Once the business combination is completed, Alternus plans to accelerate its growth by pursuing targeted and value-enhancing acquisitions. Browne expressed their intention to bring 156MW of the company's 582MW development portfolio into construction and operation throughout 2024.
As Alternus navigates the impact of weather fluctuations on its power production and prepares for the business combination with Clean Earth Acquisitions, the company remains focused on leveraging its solar parks' predictability and high-margin cash flows to drive sustainable growth and capitalize on future opportunities.
