In This Article:
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Revenue: Maintained good levels despite low electricity prices in the first half.
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EBITDA: Estimated to be EUR 205 million to EUR 215 million for the year, a 14% reduction due to low electricity prices.
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Electricity Price: Current price in Spain is EUR 120 per megawatt hour, higher than previous estimates.
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Production Growth: Increased by more than 15%.
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Debt Cost: Average cost of debt is 3.7%.
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Construction Capacity: 1.7 gigawatts functioning and 1.5 gigawatts under construction.
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Future Wind Capacity: More than 3 gigawatts planned in Europe.
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Joint Ventures: Estimated revenues of EUR 30 million to EUR 45 million per year for 100 megawatts.
Release Date: November 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Solaria Energia y Medio Ambiente SA (SEYMF) is expanding its data center business across Europe, with a strong focus on Spain, and is negotiating joint ventures with Tier 1 players from Europe and the United States.
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The company is entering the UK market, which is seen as promising for renewable energy expansion, particularly in wind technology.
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Solaria has a robust pipeline with 1.7 gigawatts of power land solutions for data centers, primarily in the Iberia region.
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The company is maintaining its EBITDA targets for the year, with an estimated range of EUR205 million to EUR215 million, despite challenges in electricity pricing.
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Solaria is strategically focusing on combining solar, wind, batteries, and data center consumption for a comprehensive infrastructure strategy.
Negative Points
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The company experienced a 14% reduction in EBITDA due to low electricity prices in the first half of the year.
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Solaria is facing delays in construction projects due to issues with small players sharing infrastructure, impacting timelines.
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The Spanish government's 7% generation tax has significantly affected Solaria's EBITDA.
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There is uncertainty regarding the timeline for revenue generation from the data center joint ventures, with expectations set for late 2026 or 2027.
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The company is dealing with infrastructure delays, particularly affecting the Garonia project, which has been pushed to the second half of 2025.
Q & A Highlights
Q: When will the revenue from the joint venture data center deals start, and can you provide a timeline for signing these agreements? A: Revenue from data centers is expected to begin by the end of 2026. We aim to announce joint ventures before the February results presentation, with construction taking approximately 1.5 years. The focus is on entering a new business with key Tier 1 players, transforming Solaria into an energy partner for the technology world.