Solarpack posts strong Q1 revenue as it chips away at global backlog

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Spanish developer Solarpack has reported strong results for the first quarter of 2019, as its operating revenues spiked 35% quarter on quarter, while earnings before interest, tax, depreciation and amortization (EBITDA) jumped 14% to €4.5 million, up 14% from the fourth quarter of 2018.

The company, based in the Spanish town of Getxo, said its power generation unit recorded operating revenues of €7.1 million and EBITDA of €6.3 million in the first quarter. The division claimed an attributable capacity of 141 MW across 11 sites in Chile, Spain, India and Peru, equalling a total installed capacity of 252 MW.

Solarpack’s development and construction teams have started building 112 MW of PV in Spain and 81 MW in India, as well as 144 MW in Chile, bringing its total under-construction portfolio to 337 MW. It also said that construction of an additional 193 MW in Spain and India will keep its development and construction teams busy throughout the remaining quarters of the year.

Solarpack said that it decided to scale back its KA2 installation in India from 128 MW to 81 MW, as execution risks were too high for two of the five sites that make up the project. It finalized senior financing of up to INR 1,923 million ($27.4 million) from Tata Cleantech for the KA2 project. However, it insisted that the decision to reduce its size would not significantly affect its backlog of 459 MW.

In addition, the company claimed another 123 MW of backlog, on top of a total pipeline of 1.46 GW. It classified another 3.5 GW of capacity as “identified opportunities,” pointing to new projects in Spain, the U.S. and unspecified countries in Southeast Asia.

In the first quarter, the company’s services unit maintained and operated 160 MW of the group’s own projects, as well as third-party assets. However, it said it has scaled back its focus on third-party projects in favor of managing its own projects and strategic contracts. By the end of March, the company was providing asset management services to 302 MW of its own projects and those of third parties, down from 330 MW at the end of the fourth quarter of 2018.

In December, Solarpack listed shares on the Barcelona, Madrid, Bilbao and Valencia stock exchanges, after raising about €100 million in an initial ordinary share offering.

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