Nordic Solar publishes interim financial statements for the second quarter of 2023:

Increased electricity production but declining electricity prices generated lower revenue in the second quarter of 2023. Outlook for the full year of 2023 is adjusted downwards

Despite increasing electricity production, Nordic Solar has recorded a revenue decline in the second quarter of 2023 due to a larger than expected decrease in electricity prices. As a consequence, Nordic Solar is reducing its full-year revenue and earnings expectations for 2023. With the conclusion of the EUR 300 million loan facility agreement entered into with the US private equity fund EIG, Nordic Solar is cushioned to execute on its long-term growth plans.  

As a result of lower electricity prices, revenue in the second quarter of the year decreased by about 16 per cent to approximately EUR 21 million compared to the second quarter of 2022. The declining electricity price is offset by the increase of approx. 15 per cent in electricity production to approx. 172 GWh, partly as a result of the opening of a new solar park in Denmark. With the commissioning of 32 MWp Højby solar park on Funen at the beginning of the third quarter, Nordic Solar currently operates solar parks with a total production capacity of 390 MWp. In addition, during the quarter, Nordic Solar initiated the construction of solar parks with a production capacity of 282 MWp. At the end of the quarter, the total development portfolio reached just under 1.7 GWp.

As a result of the lower electricity prices, Nordic Solar now expects full-year revenue for 2023 in the range of EUR 57-67 million (previously EUR 65-85 million) and operating profit (EBITDA) in the range of EUR 32-39 million (previously EUR 45-65 million).

“We exited the second quarter of 2023 with results reflecting a larger than expected decrease in electricity prices, which more than offsets the increased electricity generation of our solar parks. As a result of the lower electricity prices, we have lowered our expectations for the full year. But we find the continued progress of our portfolio satisfactory, and we see the loan agreement with EIG Partners as a seal of approval of our business goals and long-term growth potential,” says Jes Vengaard, CFO of Nordic Solar.

EUR 300 million loan facility to contribute to continued growth

In continuation of the first six months of the year, Nordic Solar has entered into an agreement with the US private equity fund EIG on a credit facility of EUR 300 million, of which EUR 200 million will be spent on financing construction projects and EUR 100 million may be spent on funding new development projects in the portfolio. In general, the loan agreement will help realise the company’s ambitious growth targets towards 2025, which entail a fivefold increase of the operational portfolio’s production capacity. The agreement is a milestone in terms of being able to make the necessary investments towards 2025, which are to realise the development projects in the company’s pipeline, and which subsequently, once they have been put into operation, will help secure financing for further growth in the future.

“The agreement with EIG puts us in a strong position to ensure future growth in our portfolio, and with the financing strategy for the years ahead in place, we maintain momentum and can accelerate the investments that will help build an operational portfolio of 2 GWp in operation by 2025,” says Jes Vengaard.

To read the report for the second quarter of 2023, click here.

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