Pacifico Renewables Yield AG: Continuous revenue growth in 2021 and well positioned to benefit from elevated electricity prices in 2022

March 31, 2022
  • Revenue growth continues – Revenues of €22.0 million in 2021 achieved
  • Adjusted operating EBITDA margin of 80% underlines operative strength of portfolio
  • IFRS transition completed – Way paved towards regulated market
  • Merchant exposure provides significant upside in 2022
  • Revenue guidance 2022: Continuation of growth trend anticipated and potential to be accelerated by elevated electricity prices

Gruenwald, March 31, 2022 – Pacifico Renewables Yield AG (ISIN: DE000A2YN371) (“Pacifico Renewables”, or the “Group”), an independent producer of electricity from renewable sources, announced its preliminary 2021 financial results today. In 2021, the Group grew significantly for the second year in a row. According to preliminary calculations, revenues increased by 46% to €22.0 million (2020[1]: €15.0 million). Revenues were therefore within the range of the management’s guidance, which was raised twice in 2021 also due to the Group’s exposure to electricity prices particularly following the 2021 acquisition of a wind project in Poland. Earnings before interest, taxes, depreciation, and amortization (EBITDA) at group level, adjusted for non-recurring items, grew strongly by 36% to €14.7 million (2020: €10.8 million). Similarly, operating EBITDA, EBITDA additionally adjusted for holding costs, amounted to €17.5 million (2020: €12.5 million). The adjusted operating EBITDA margin was at 80% (2020: 83%), reflecting the operational strength of the portfolio.

The preliminary results and 2020 financials are for the first time based on the International Financial Reporting Standards (IFRS) and the Group’s annual report 2021 will be published according to IFRS. With the completion of the IFRS transition, the Group has accomplished another milestone, which is key for one of the strategic priorities of the Group: the envisaged uplisting of the Group’s stock to the regulated market.

Portfolio growth and elevated electricity prices boosting revenues

In 2021, the Group acquired another solar park and a wind park in Germany, two solar projects in the Netherlands and one wind project in Poland, which allowed it to more than double its operational portfolio from 66 MW to 166 MW once recent acquisitions are fully operational.

The management sees potential for further significant revenue growth in 2022 due to the increased portfolio size and elevated electricity prices. In 2022, the Group’s share of produced electricity exposed to market prices can reach up to 50% depending on actual production and market conditions, mainly driven by two components:

  1. Approximately 30% of the expected electricity produced in Poland will be sold at merchant prices in 2022, which are supposed to lie well above historic averages as indicated by current future prices;
  2. Solar and wind parks backed by German Feed-in-Tariffs can by design benefit from merchant prices if the monthly reference price exceeds the respective Feed-in-Tariff. Some of the Group’s plants located in Germany might as in the recent past continue to benefit from this mechanism.

To illustrate this point, elevated electricity prices in combination with strong wind conditions led to approximately €2.9 million of revenue beyond plan figures for January and February 2022 alone.

Revenue guidance for the 2022 financial year

The Group´s revenue guidance is based on already favorable wind conditions combined with high electricity prices in January and February 2022, as well as the possibility of continued high electricity prices. The management board expects revenues to range between €33.0 million and €43.0 million for the 2022 financial year. This guidance exceeds the current market expectation of €32.0 million (arithmetic mean of analysts´ estimates published up to March 30, 2022, median: €32.5 million), which illustrates the significant revenue upside due to elevated electricity prices. Even at the lower end of the guidance, revenue would still increase by 50% compared to €22.0 million in 2021. The management anticipates that especially the electricity prices in Poland and Germany, which have reached long-term highs, will drive revenues beyond prior expectations. However, electricity prices are currently subject to substantial volatility, leading to the wide range of revenue expectations.

 

 

About Pacifico Renewables Yield AG

Pacifico Renewables Yield AG is an independent power producer listed on the open market of the Dusseldorf Stock Exchange with additional requirements (Primärmarkt) (ISIN: DE000A2YN371) with the aim of building up a gradually growing portfolio of plants for energy generation from renewable sources. With operational wind and photovoltaic power plants spread across Europe, the Company offers a clear and diversified profile with stable and predictable earnings.

Disclaimer

This announcement may contain certain forward-looking statements, estimates, opinions, and forecasts concerning the future business situation, earnings situation, and results of Pacifico Renewables Yield AG (“forward-looking statements”). Forward-looking statements can be identified by words such as “believe”, “estimate”, “anticipate”, “expect”, “intend”, “will”, or “should” and their negation and similar variations or comparable terminology. Forward-looking statements include all matters that are not historical facts. Forward-looking statements are based on the current opinions, forecasts and assumptions of the management board of Pacifico Renewables Yield AG and involve significant known and unknown risks and uncertainties, therefore actual results, performance and events may differ materially from those expressed or implied by forward-looking statements. Forward-looking statements contained herein should not be construed as guarantees of future performance or results and are not necessarily reliable indicators of whether or not such results will be achieved. The forward-looking statements contained in this release are only valid on the date of this publication. Pacifico Renewables Yield AG will not update the information, forward-looking statements or conclusions contained in this release in light of subsequent events or circumstances, nor will it reflect subsequent events or circumstances or correct inaccuracies that arise after the date of this release as a result of new information, future developments or otherwise, and the company does not assume any obligation to do so. The company does not assume any responsibility whatsoever that the forward-looking statements or assumptions contained herein will occur.

 

[1] During the IFRS transition, the date of the initial consolidation of the 21 MW solar parks acquired in the first half of 2020 was reassessed and this led to a later consolidation. Due to the later consolidation P&L recognition now becomes effective as of April 2020 and affects 2020 financials compared to the 2020 financials published in the annual report 2020 according to German Accounting Principles (HGB).

 

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