CEO COMMENT: During the quarter, we focused on the work of refinancing our outstanding bonds with the aim of creating conditions for continued profitable growth. We are currently working intensively on a new financing solution in Chinese currency. A financing solution in China means lower taxes and that the currency risk largely disappears. The repayment of our outstanding Swedish bonds will take place when the solution is in place, aiming at the end of the second quarter. In the quarter, we had good solar radiation, but higher costs due to rising interest rates and negative currency effects. In connection with our refinancing process, we have also been forced to incur some costs of a one-off nature, including for legal and financial advice. We experience continued strong demand for our offer and when new financing is in place, we can increase the rate of growth.
The quarter, in short
January 1st – March 31st
• The company installed a total of 0.0 (8.7) MW of roof-based solar energy plants and had 250.3 (213.2) MW installed and revenue-generating capacity at the end of the quarter.
• 43 (33) million kWh were produced, an increase of 31 percent, which reduced China’s CO2-related emissions by approximately 27,000 (20,000) tonnes.
• At the end of the quarter, the company had 58 (41) MW in subscribed orders, as well as projects in the pipeline of 118
• The company signed 3 (3) contracts amounting to a total installed capacity of 13.5 (6.5) MW.
• The company’s bonds SOLT2 and SOLT5 was extended to 2023-07-09, in accordance with the company’s request.
• The company has appointed Johan Edin as the new CFO of the company, taking office no later than August 2023. Johan succeeds Lars Höst, who is retiring.
The quarter, in numbers
January 1st – March 31st
• Revenues (sales of electricity and subsidies) amounted to SEK 40.7 (32.7) million, an increase of 25 percent compared
with the previous year. In addition to the installed base being higher in 2023 than in 2022, irradiation has been better this year. Currency effects had an effect on revenues of SEK 1.4 (3.9) million.
• Net sales (sales of electricity to customer and Grid) amounted to SEK 33.2 (25.6) million, an increase with 30 percent. Currency effects had an effect on net sales of SEK 1.1 (3.1) million.
• Other operating income (subsidies) amounted to SEK 7.5 (7.1) million.
• Operating expenses amounted to 37.8 (29.0) MSEK, an increase of 30 percent compared to the previous year. The single largest item to the increase is extraordinary costs, amounted to SEK 3.0 million, in connection with the extension of the SOLT2 and SOLT5 bonds. Other major items are that costs for planned depreciation, maintenance costs and roof rents for solar energy facilities have increased, as well as a currency effect of -1.0 (-2.9) MSEK.
• Operating profit for the quarter amounted to SEK 2.9 (3.7) million. Adjusted for extraordinary costs in connection with the extension of the bonds, the operating profit amounted SEK 5.9 million.
• Interest expenses and similar income items amounted to SEK 37.4 (32.3) million. Behind the figure is an increased interest rate for the bond loans SOLT2 and SOLT5, and increased interest costs for financing in China.
• Profit for the year after financial items and tax amounted to SEK -35.3 (-7.5) million and was affected by a non-cash flow- affecting currency effect of SEK -0.9 (20.9) million. Adjusted for this item, profit for the year amounted to SEK -34.4 (-28.5) million.
• Total cash flow for the quarter amounted to SEK -8.2 (-100.2) million.
• Earnings per share before dilution amounted to SEK -0.89 (-0.19).
• The number of employees at the end of the period was 18 (15).
Significant events after the end of the period
• The company signed two contracts amounting to an installed capacity of 6.5 MW.