During the quarter, the company stopped energy trading activities in Romania, which, in the short term, was a big reason the quarter ended with revenue of $934,000 — 4% less than the second quarter of 2018.
Adjusting for the costs associated with closing that lower margin arm of the company, however, revenue increased 38% year over year. Gross margins jumped 83%.
During the quarter, Alternus acquired 4.1 megawatts of operating solar parks in Italy, which CEO Vincent Browne believes made an immediate difference to the balance sheet.
READ: Alternus Energy begins filing with the SEC as part of plan to uplist to the NYSE or Nasdaq in New York
“[The acquisition] immediately improved revenues and gross profit in the period and also added approximately $1.8 million in contracted annual revenues for the next 12 years,” Browne said in a statement.
“The acquisition also increased net assets and resulted in a one-time gain of $4.2 million, reflecting the difference between the fair value of the projects acquired and the price actually paid, which is further proof of our ability to identify and acquire undervalued assets.”
Browne continued, “In addition to the financial performance in the quarter, we also strengthened our operational capabilities with the BayWa r.e. agreement, improved our financial position and funding relationships and expanded our operational footprint with the solar park acquisitions in Italy and, subsequent to the end of the quarter, our contract to acquire 11.75MW in The Netherlands which, when completed, will bring our total park ownership to 40MWs. Our pipeline of additional opportunities remains robust as we push towards our goal of exiting 2019 with over 100 MWs of owned energy assets.”
The agreement with BayWa, signed June 6, will provide Alternus with monitoring and preventative maintenance at its solar projects in Germany, Italy, Romania and the Netherlands.
The company's earnings were a loss of $0.02 per share, down from breakeven a year ago.
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