Renewable independent power producer (IPP) Alternus reported a $1m decline in profit in its first quarter financial results.
Power production decreased by 15% in the period to 25.8MWh due primarily to weather variances year-on-year.
Operating expenses rose by $2.1m (55%) due primarily to increased operating costs to support the growth of the business and one time expenses related to the planned business combination with Clean Earth Acquisitions.
Vincent Browne, Alternus Chairman and Group CEO, said: “This is our first quarter in which operating assets were unchanged versus the year earlier, and the small variance we saw in production and revenue was primarily due to weather.
“Adjusting for weather, the stability in our results reflects one of the most important attributes of our business model…that once owned and in service, our solar parks generate a steady stream of power at steady prices literally for decades.
“This predictability is what makes these parks valuable assets in that they generate high margin cash flows that can be monetized in any number of ways, including to fund growth internally.
“We look forward to closing the business combination with Clean Earth soon.
“We now anticipate closing in Q3 due to delays outside our control.
“After closing, we intend to ‘step on the gas’– so to speak– to complete several targeted accretive acquisitions.
“We expect to bring 156MW of our 582MW development portfolio into construction and operation during 2024.”