Spanish solar power producer Solaria Energia y Medio Ambiente SA saw a slight dip in earnings for the first half of 2024, as lower wholesale electricity prices impacted its revenue. However, increased power generation and long-term power purchase agreements (PPAs) helped the company maintain stability in its overall performance.
Revenue fell by 2% to EUR 97.8 million (USD 108.1 million), while earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by 5% to EUR 84.3 million. Net profit also dropped 17% year-on-year to EUR 41.6 million.
These declines were offset by a 22% increase in energy production, which reached 1,224 GWh during the period. Despite a 35% drop in average selling power prices, which fell to EUR 47.9/MWh, Solaria's sales only saw a modest 2% reduction, totaling EUR 83.0 million, according to the company's earnings report.
Solaria invested EUR 112 million in the first half of the year and secured permits for 1 GW of new projects, expanding its total portfolio to 18 GW. This includes 1,658 MW of operational solar capacity and 1,425 MW under construction. The company also advanced its emerging wind power business, with 400 MW of hybrid wind and solar projects currently under evaluation. Construction permits for these wind farms are expected by 2025.
Looking forward, Solaria expressed optimism about its outlook for the rest of 2024. It anticipates improvements across all business areas due to rising energy prices and other market factors, forecasting an EBITDA of approximately EUR 210 million by year-end and cash flow growth to EUR 94 million in the third quarter.
Between 2025 and 2028, Solaria expects to generate nearly EUR 1 billion in cash, supported by contributions from its new data center business and land acquisition vehicle, Generia LandCo. The company confirmed plans for a EUR 150 million capital increase for Generia, in line with previous reports.
Chairman Enrique Diaz-Tejeiro commented, “Solaria will be a key player in Europe's digital and energy transition in the coming years thanks to the diversification of its business lines: solar and wind energy, batteries, hydrogen, data centers, and land management. We continue to make steady progress in achieving our strategic plan.”
