Alternus Energy PLC (EURONEXT:ALT) said its revenue for full-year 2022 rose sharply, reflecting gains in capacity and power production amid new projects in Poland and the Netherlands alongside higher energy prices across Europe.
The company, which is headquartered in Ireland, said full-year booked revenues surged by 52% to $32.5 million while gross profit jumped to $23.3 million from $14.2 million in 2021. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 82% to $12.2 million.
The increases were underscored by a 118% rise in power production to 187.6GWh.
In the final quarter of 2022, its booked revenues rose 7% to $6.1 million while gross profit increased to $4.5 million from $2.4 million in 4Q 2021. EBITDA, meanwhile, surged 100% to $0.7 million.
The company reported a net loss of $27.7 million for the quarter mainly due to a one-time $23.9 million write-off for costs related to acquisitions it abandoned and the reclassification of previously capitalized costs. The company added that one-time write-offs led to its net loss of $35.8 million for the period.
Stellar year
“2022 was another strong year overall for Alternus. On the operating side, we more than doubled our power sold as we brought online projects in the Netherlands and purchased additional assets in Poland, which complement our strong presence in Romania and Italy,” Vincent Browne, chairman and group CEO, said in a statement.
Poland became the company’s primary market in 2022, with capacity up 14% and power production up 388% due to full years of production from the Witnica and SIG 24 parks, while in the Netherlands, capacity and production more than doubled.
Additionally, the company noted that at the end of 2022, it had 582MW under management within which approximately 150MW are set to reach construction within 12 months and a further 300MW in the following 12 months.
Alternus chief financial officer Joseph Duey added: “Our primary challenge is funding this explosive level of growth, a good-to-have problem for which we made real progress in 2022. In the fourth quarter we announced a transaction to list on Nasdaq in the US, that should provide greater access to more equity capital at an attractive cost. We recently adjusted the terms of the transaction to reflect market conditions and our desire to invest even more in growth over the next couple of years.
"Furthermore, we secured a €500 million commitment to project financing from Deutsche Bank. Between this new source of project financing, the proceeds from the transaction, and the ability to access equity capital as needed in the future, we are confident that we can fund the aggressive growth plan we are putting in place.”
After the close of the 2022 fiscal year, the company said its subsidiary Solis Bond Company secured temporary waivers for Green Bond covenants. The company also announced a revision to its Business Combination Agreement with lower equity valuation and smaller “earnout” share award reflecting reduced near-term EBITDA targets.
Alternus Energy is an international vertically integrated independent power producer.
Contact the author at jon.hopkins@proactiveinvestors.com