Alternus Energy Group PLC (EURONEXT:ALT) has revised its financial results for the first quarter of 2023, after a review related to the planned merger with blank check company, Clean Earth Acquisitions Corp.
The Alternus Q1 2023 financial report was included in an amended Proxy statement filed by Clean Earth Acquisitions with the Securities and Exchange Commission (SEC) in the US on June 26, 2023.
The filing is related to the anticipated business combination, now expected to be completed in the third quarter of 2023.
In a statement, Vincent Browne, chairman and Group CEO of Alternus Energy highlighted the stability of the company's performance which demonstrates the predictability of its business model.
Browne commented: "Our solar parks generate a steady stream of power at steady prices literally for decades." He also expressed optimism about the impending business combination with Clean Earth, now scheduled to close in the third quarter.
Browne emphasized their intention to pursue targeted accretive acquisitions and complete several development projects, aiming to bring 156MWp of their 582MWp development portfolio into construction and operation by 2024.
The reviewed results showed that during the first quarter, Alternus saw power production decline by 15% to 25.8 MWh, primarily due to weather variations compared to the previous year. Consequently, revenue also decreased by $0.4 million (8%) to $4.8 million, offset by higher energy rates.
The company noted that gross profit experienced a decline of $1.0 million (25%) due to lower revenues versus fixed operating costs. Operating expenses increased by $2.1 million (55%) as a result of higher costs associated with supporting business growth and one-time expenses related to the planned business combination. The modestly negative EBITDA of $0.09 million reflected lower gross margins in the period, down from a positive $1.9 million in 2022.
Alternus Energy also announced an amendment to the Business Combination Agreement with Clean Earth Acquisitions, reducing the equity value of Alternus and associated adjusted EBITDA targets for 2023, 2024, and 2025. The revised terms are expected to be attractive to investors and support the future growth of the business, the company said.
Alternus Energy, an international independent power producer headquartered in Ireland, develops, installs, owns, and operates medium-sized utility-scale solar parks. The company is listed on Euronext Growth Oslo and has offices in Rotterdam and the United States.
Contact the author at jon.hopkins@proactiveinvestors.com