7C Solarparken Lifts H1 EBITDA on Strong Operations Despite Lower Power Prices

Core Insights - 7C Solarparken AG reported a significant increase in first-half 2025 EBITDA to €32.8 million, up from €23.2 million year-over-year, driven by favorable weather conditions and the absence of a previous impairment related to its 20-MWp Reuden Süd project [1][2] - The company maintained average realized prices at €159/MWh despite facing record negative power prices and weaker market values, with cash flow per share increasing to €0.33 from €0.21 in the prior-year period [2] - Management has raised its full-year guidance for EBITDA to at least €51 million and cash flow per share to €0.50, despite expectations of weaker solar irradiation and a lower average PV market value of €45/MWh in the second half [3] Financial Performance - The company recorded a €14.7 million impairment on solar parks due to revised market price assumptions, which reduced equity to €233.8 million; however, it maintains a solid balance sheet with a 44% equity ratio and a reduction in net debt by 11% to €101 million [5] - EBITDA is projected to gradually decline from €51 million in 2025 to €31 million by 2030 as older high-feed-in tariffs expire, even as net leverage is expected to decrease to 1.2x EBITDA [4] Strategic Initiatives - As part of its Roadmap 2030, 7C Solarparken plans to expand capacity by adding 10 MWp of PV annually and 15 MW/30 MWh of battery storage, while implementing a multi-market sales model similar to Belgium [4] - The company is advancing its 2025 business plan with several repowering projects, a strategic move into battery storage, and the continuation of its share buyback program, which is 80% completed [6] - The IPP portfolio is nearing the 500-MWp milestone, indicating growth in operational capacity [6]