MPC Energy Solutions continues revenue growth and margin improvements in third quarter, surpasses full-year performance of 2023
Amsterdam/Oslo – 31 October 2024 – MPC Energy Solutions (“MPCES”, “Company”) published its financial results for the third quarter and first nine months of 2024 today.
The third quarter was marked by a strong increase in energy output, resulting in surging revenues and operating profits and continuing the trend reported in previous quarters. An increase of proportionate energy output to 89.8 GWh (+37% year-over year) led to proportionate project revenues and EBITDA of USD 9.7 million and USD 6.5 million, respectively, up from USD 6.8 million (+43% year-over-year) and USD 3.0 million (+114% year-over-year) in the first nine months of 2023, already surpassing the full-year numbers of 2023 as well.
“Most of our portfolio continues to deliver very good results, with increasing and robust energy output figures”, said Stefan H.A. Meichsner, Chief Financial Officer of MPCES. “Furthermore, our operating margins continue to improve. Paired with the lower overhead cost base we have now established, we are quickly approaching positive operating margins on group level.”
Proportionate revenues for the third quarter were reported at USD 3.6 million (Q3 2023: USD 2.8 million). The Company also reported a positive group EBITDA of USD 3.1 million year-to-date, compared to a negative group EBITDA of USD 1.1 million during the same period a year ago. The Company’s overhead spending is down 30% year-over-year following successfully implemented cost reduction measures.
Impairments on CHP plant in Puerto Rico and adjusted guidance
As previously reported, its CHP plant in Puerto Rico has seen very little energy output in 2024, caused by low energy demand from the off-taker, a local pharmaceutical company. MPCES has decided to halt production as the Company does not expect the situation to improve in the near future. Following anticipated financial constraints of the off-taker, MPCES is in the process of selling the asset and exiting the market. First impairment charges of USD 0.8 million have been recorded in the third quarter of 2024, and the Company expects additional impairments following the sale.
As a consequence of the stopped production, MPCES has made a slight downward adjustment to its full-year guidance. The Company now expects proportionate revenues to be between USD 11.5 million and USD 12 million and proportionate project EBITDA between USD 7.5 million and USD 8 million, aiming for the higher end of both ranges given the solid performance from its remaining portfolio. The previous guidance had proportionate revenues at USD 12 million and proportionate project EBITDA and USD 8.5 million.
An exit from the CHP plant in Puerto Rico has been on the agenda for quite some time and is not expected to have any effects on any other projects. MPCES is optimizing its operations focusing on core markets with the highest yielding projects.
For Q3 2024 and year-to-date 2024, the MPCES Group reported the following key financials (unaudited):
| in thousand USD unless stated otherwise, negative values in “()” | ||
Proportionate financials by quarter, 2024 vs. 2023 | ||
| Q3 2024 | ||
| Revenue | 3,613 | |
| Project EBITDA / EBITA | 2,648 / 1,929 | |
| Group EBITDA / EBITA | 1,575 / 856 | |
Q3 2023 | ||
| Revenue | 2,785 | |
| Project EBITDA / EBITA | 1,158 / 461 | |
| Group EBITDA / EBITA | (384) / (1,081) | |
| Proportionate financials for YTD, 2024 vs. 2023 | ||
| YTD 2024 | YTD 2023 | |
| Revenue | 9,717 | 6,809 |
| Project EBITDA / EBITA | 6,537 / 4,321 | 3,049 / 1,120 |
| Group EBITDA / EBITA | 3,606 / 1,390 | (1,147) / (3,076) |
| Consolidated financials YTD, 2024 vs. 2023 | ||
| YTD 2024 | YTD 2023 | |
| Revenue | 8,877 | 6,859 |
| Project EBITDA / EBITA | 5,984 / 3,768 | 3,060 / 1,131 |
| Group EBITDA / EBITA | 3,053 / 837 | (1,136) / (3,065) |
| Net income / (loss) | (5,040) | (4,781) |
| Net income / (loss) excl. FX effects and impairments | (2,721) | (6,627) |
| EPS (basis and diluted), in USD | (0.22) | (0.22) |
| EPS (basis and diluted), in USD excl. FX effect | (0.12) | (0.30) |
| Total assets (in million USD) | 124.3 | 129.3 |
| Equity (in million USD) | 61.5 | 74.0 |
| Equity ratio (in%) | 49% | 57% |
| Free cash position (in million USD) | 2.1 | 8.8 |
| Debt (in million USD) | 51.8 | 44.5 |
MPC Energy Solutions – Invitation to webcast – Q3 2024 results
A webcast for the investment community will be held today, Thursday, 31 October 2024 at 2:00 p.m. CET. There will be a Q&A session after the presentation, and a recording and written transcript of the webcast will be published on the Company’s website afterwards.
From 2:00 p.m. CET today, the presentation to be reviewed during the webcast will be available on our website: https://www.mpc-energysolutions.com/investors/reports-presentations
Q3 webcast information:
Date: 31 October 2024
Time: 2:00 p.m. CET
Duration: 45 minutes incl. Q&A
Sign up for and access the webcast here: https://hca.videosync.fi/2024-10-31-mpces-q3-2024/register
For further information, please contact [email protected].
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About MPC Energy Solutions
MPC Energy Solutions ("MPCES") develops, builds, owns and operates renewable energy assets, including utility-scale solar photovoltaics (PV) and onshore wind farms and hybrid projects, combining renewable sources and storage technologies. More details at www.mpc-energysolutions.com
Media contacts
MPC Energy Solutions N.V.
Investor Relations & Public Relations
Email: [email protected]
Norway
Mats Samdahl Weltz
Salto Advisers
Phone: +47 950 46330
Email: [email protected]