Alternus Energy Inc (OTCMKTS:ALTN), the renewable energy company, saw its revenue jump last year, thanks to the winning of European government counter-party contracts that are set to deliver long-term cash flows.
The New York company’s revenue for the year ended December 31 came to $2.6 million, an increase of $0.1 million, compared to $2.5 million in 2017.
Its gross profit, meanwhile, jumped to $1.3 million, up from $1.2 million in 2017.
Last year, Alternus notched a number of key advances and expanded its operations to include handling business in Germany, Italy and Romania.
It now owns 25 solar parks totaling 9.6 megawatts of installed power across Germany, which are set to bring in about $18 million of fixed-price contractual revenues over the next 20 years.
As part of its expansion into Germany, it also entered into an agreement with a leading German developer to acquire at least 200 megawatts of solar projects over three years.
“With access to growth capital in place and a robust pipeline of solar projects, we are at a very exciting inflection point to significantly scale our business. We will continue to invest in our infrastructure and additional solar parks to increase our installed power, which will drive increases in revenue and income,” said Alternus CEO Vincent Browne in a statement.
The company also completed the purchase of the ‘Liquid Sun’ operating solar projects in Italy where installed power of 2.2 megawatts will generate about $0.7 million of additional annual revenues.
Its newly-acquired solar parks in Germany and Italy benefit from feed-in-tariff (FiT) government incentives that guarantee a fixed-sales price for every megawatt of energy that the parks generate over 20 years from the date of their construction. As a result, Alternus has a contracted revenue backlog of about $4.8 million over the next 15 years.
Looking ahead, as Alternus continues to expand in Germany, it expects to add an additional 40-60 megawatts to its existing 10 megawatts there. Negotiations are also underway to acquire an additional 18 megawatts of operational parks from an existing partner in Italy, and the company is now expanding into the Netherlands with agreements to acquire up to 24 megawatts of operational parks there.
If all goes according to plan, Alternus will finish 2019 with over 100 megawatts of installed power that should deliver over $300 million in contracted revenue backlog over 15 to 20 years.
The company’s net loss for the year ended December 31, shrank to $1.2 million, from a loss of $1.6 million in 2017.
Alternus Energy is a renewable energy company that owns and operates solar parks. Each park generates clean energy that is sold to national power grids under long term, government counterparty, fixed price contracts.
Contact Ellen Kelleher at [email protected]