Profits hike for Solarcentury

Solarcentury’s profits have seen a sharp increase over the last year following investment in solar projects across Europe and Africa.

Earnings before interest, depreciation and amortisation (EBITDA) grew by 860 per cent to £14.4 million for the year ended 31 March 2019, compared to £1.5 million in 2018.

EBITDA margin also increased from 2.4 per cent in 2018 to 14.4 per cent in 2019.

The renewable energy firm reported revenues of £100.2 million for 2019, an increase of 59 per cent compared to £62.9 million the previous year.

The company’s utility-scale business grew in terms of operational and advanced stage pipeline projects, including the 300MW Talayuela solar development in Spain, as well as one of Africa’s largest airport solar PV plants at Moi International Airport in Mombasa and two solar mini-grid systems for villages in Eritrea.

Solarcentury chief executive Frans van den Heuvel said: “I am delighted with the excellent results we have delivered over the past 12 months, which marks further progress in our international growth strategy launched four years ago.

“Through our focus on global expansion across Europe, Latin America and Africa, we are increasing the accessibility and production of solar power at all scales from homes and commercial and industrial rooftops to solar farms, in our mission to make a meaningful difference in the fight against climate chaos and bring positive power to all.

“We now develop, build, operate and own some of Europe’s largest solar farms, have become the market-leading provider of solar systems to corporates in Africa and have a large and growing global development pipeline, which currently stands at 5GW. With continued strong trading momentum, we are on track to double our profits in the current financial year and look to the future with great confidence.”

The company’s pipeline includes five projects with combined capacity of 750MW, expected to be ready to build during the new financial year.

The outlook for the year ahead will also involve a renewed focus on subsidy-free solar development in the UK following the government’s recent commitment to net zero carbon emissions by 2050.

This focus on UK operations is expected to be buoyed by technological innovation and falling costs in the industry. Solarcentury also plans to draw on its major projects in Spain as a roadmap for its developments in the UK.

Van den Heuvel added: “There are huge opportunities for governments around the world to create a cheaper, cleaner energy supply, while also unlocking a raft of new jobs. With the UK government recently committing to net zero carbon emissions by 2050, now is the time to put solar on a level playing field with other energy generation technologies.

“The world must now stop subsidising fossil fuels and set itself on an urgent net zero pathway, essential not just for the environment but for the survival of the economy and society as a whole.

“Solar is proven and ready to be deployed at speed and significant scale, while also now being one of the cheapest and most economical sources of energy in the majority of markets worldwide. A wealth of scientific research has already shown us that action must be taken urgently to combat climate chaos, and these compelling economics underline how solar can play a key part in the global energy transition.”

In April, Sky News cited unnamed sources as claiming that Solarcentury’s owners were in the process of negotiating the sale of the company. A potential deal could see the business valued at £250 million.

Solarcentury declined to comment on the process.