Soltech company Soltech Energy Solutions has now signed a new battery contract. The company will help the energy Group Tekniska verken with a battery storage of 4 MWh. The battery storage will be built in connection to a new charging park for heavy vehicles that Tekniska verken will build in Mjölby. The order value for the project amounts to SEK 28 million and construction is expected to start in Q1 2024.
Soltech Energy Solutions is the Soltech Group's operating company within tech solutions such as advanced energy systems, energy storage and large-scale solar energy solutions. The company has previously helped several energy companies with battery storage solutions that balances the electricity grid, sells frequency services to Svenska kraftnät and cuts power peaks that the increased electrification brings.
Now the company will help Tekniska verken with a new large-scale battery installation. The battery storage will be built in connection with the charging park for heavy vehicles that Tekniska verken will construct in Mjölby close to the E4 motorway. The project is the second that Soltech is constructing in their grid, after a 2 MW/2MWh battery storage facility that was installed in 2022.
– It feels great to once again be able to design and install a large-scale tech solution in the form of a battery storage of 4 MW/4MWh. The battery storage will be an important measure to both stabilize the electricity system but also to boost their upcoming charging park and cut any power peaks, says Rickard Lantz, Business Development Manager at Soltech Energy Solutions.
Increasing demand
Energy storage solutions in the form of large-scale batteries is becoming an increasingly important complement to the electricity system. Not least when increasingly renewable and weather-dependent electricity production such as solar and wind energy is installed. These types of power sources are often a challenge for grid owners as they do not offer the support services that planable facilities normally offer.
– With this technology, energy companies can be part of the solution to a problem posed by increased electrification and the rising amount of renewable electricity. By connecting their battery storage to the frequency market, a necessary balance is created between production and consumption, concludes Rickard Lantz.
So writes Analysguiden, part of Aktiespararna, in a new analysis of Soltech Energy's share. In terms of the share's valuation, Analysguiden concludes that the Soltech share is still heavily undervalued and reasons that the market capitalization is far too low. They therefore repeat their previous price target of SEK 25 per share for the Soltech share.
The analysis also includes a market overview in which the Analysguiden particularly highlights Soltech's broadening towards two strategic areas. The first is the solar park area, where Soltech has signed an agreement with Norwegian Solgrid for potential order volumes of SEK 700-1000 million over the next few years, and potentially up to SEK 2 billion in total. The second area the analysts identify a little extra is the expertise in large-scale EV charging, where the subsidiary E-Mobility is leading the Group's investment in an area that is expected to grow significantly in the coming years.
However, the analysis comments that the margin improvement is delayed and indicates that the gross margin remains at 35%. 2023 is once again a challenging year, but management and all subsidiaries are working hard to improve margins on an ongoing basis.
In summary, Analysguiden states that they see a significant upside in the share and also presents a reasoning in which they report that they do not find anything substantial enough to even come close to explain the falling price trend and the low valuation.
Here you can read the full analysis (in Swedish): https://www.aktiespararna.se/analyser/soltech-energy-forskjutning-av-marginalmalet
The Soltech company Soltech Energy Solutions will now install a 3.8 MW roof-placed solar energy solution for the energy company Öresundskraft. Close to 18,000 square meters of solar panels will be installed on the roof of Greenfood's new production and logistics facility at Långeberga, outside Helsingborg. The solar electricity will then be traded through a PPA (Power Purchase Agreement) signed for 19 years. Construction of the facility will start at the end of 2023.
Soltech Energy Solutions is active in project development of large-scale solar energy solutions on roofs, land and tech solutions for property owners and large energy companies.
The company has now been commissioned to install a 3.8 MW solar installations for Öresundskraft and Greenfood at Greenfood's new production and logistics facility "Greenhouse". The production capacity from the solar panels will roughly correspond to the household electricity that 700 average houses, or equally what 1 750 apartments consume annually.
– We are very pleased to be able to help Öresundskraft and also Greenfood with a large-scale rooftop solar energy solution. The PPA electricity purchase agreement signed for the solar electricity also means that the business will have a stable electricity price over time while reducing its climate footprint, says André Nylén, Key Account Manager at Soltech Energy Solutions.
Long PPA solution
The production from the solar panels will cover about 20 percent of the Greenfood Group's electricity needs and the electricity will be traded by Greenfood through a PPA agreement signed for 19 years. This means that Greenfood only buys the solar electricity at a fixed and stable price and avoids the initial investment for the solar energy solution. After Soltech's installation of the solar panels, the installation will be owned and maintained by Öresundskraft.
– The PPA solution is a new business model that we are exploring and evaluating to enable our customers to make strategic energy choices and act more sustainably. This large-scale solar cell plant, which will also be one of the largest in Sweden, is strategically important for Helsingborg's future energy supply and contributes to achieving the city's important climate and energy goals, says Niklas Leweus, Strategic Key Account Manager at Öresundskraft.
Now the Soltech company Soltech Energy Solutions and the energy company Ra Energy have entered into an implementation agreement. The agreement means that Soltech, together with Ra Energy, will now evaluate logistics property company Logistea's property portfolio of close to 70 properties. The aim is to identify properties suitable for large-scale photovoltaic systems and battery storage. The collaboration could potentially include over 650,000 sqm of rooftop and ground-mounted solar energy, PPA electricity purchase agreements for tenants and complementary battery storage solutions.
Soltech Energy Solutions is active in project development of large-scale solar energy solutions on roofs, land and tech solutions for property owners and major energy companies. The company is also part of various value-creating partnerships with the aim of combining skills, innovation levels and resources with the goal of accelerating the green transition. Something that Soltech Energy Solutions now doing with Ra Energy.
The implementation agreement begins with the companies jointly inventorying, planning and initiating technical feasibility studies regarding Logistea's property portfolio of nearly 70 properties intended for logistics, warehousing and light industry. The companies also intend to negotiate solar power purchase agreements, PPA (Power Purchase Agreement) with the tenants who, after installation of the solar cells, are enabled to buy the solar electricity at a favorable price.
– We are very much looking forward to this collaboration in which we can really make a difference. Our deep expertise within tech solutions such as large-scale solar energy and battery solutions combined with Ra Energy's cutting-edge expertise in electricity trading and frequency trading will create great value for Logistea and their tenants going forward, says Christoffer Caesar, CEO of Soltech Energy Solutions.
Large unused areas
Ra Energy currently has a framework agreement with Logistea that gives Ra Energy the opportunity to install and build solar energy solutions on their approximately 650,000 sqm roof. Now the process of filling the property roofs with solar panels will be intensified when Ra Energy and Soltech Energy Solutions collaborate.
– With Soltech's expertise and ability to quickly install large volumes of solar solutions and Ra Energy's existing and future pipeline of access to roofs and land, we are pleased and confident to see a strong, expansive and highly profitable collaboration onwards, says Stefan Hansson, CEO of Ra Energy.
Soltech company Takrekond is now making its first bolt-on acquisition. It is Icopal Entreprenad in Helsinborg with 10 employees that will become part of Takrekond from September 1. This means that Takrekond is broadening its operations geographically and gets a new branch, Takrekond i Helsingborg, which will operate projects with large-scale roofing and solar energy solutions similar to Takrekond's existing operations in Växjö and Kalmar.
Soltech Energy acquires and develops companies in the solar, roofing, façade and electrical engineering industries. The Group also makes various types of bolt-on acquisitions to develop, strengthen and create new opportunities for existing subsidiaries.
The roofing contracting company Icopal Entreprenad's branch in Helsingborg now becomes a part of the subsidiary Takrekond through an asset acquisition. With about 10 employees and a stable financial platform the acquisition of Icopal in Helsingborg will be the starting point for Takrekond's strategic expansion into Skåne.
– This is a perfect way to further develop the company and a support for Nisse Jansson and his team at Takrekond to expand their business to Skåne. We acquire a successful business from Icopal which, in addition to roofing contracting, will also be transformed to offer solar energy services in line with Takrekond's overall strategy. I would like to warmly welcome the new employees who will now form Takrekond i Helsinborg, says Stefan Ölander, CEO of Soltech Energy.
Icopal Entreprenad AB is a roofing company with operation in southern Sweden. The company is part of the BMI Group, which is Europe's largest manufacturer of flat and steep roofs. One of the company's nine local offices is now being divested when the Helsingborg branch becomes part of the Soltech Group.
Fasadsystem is one of the Soltech Group's companies active in facade, glass and aluminium contracting, as well as solar facades and roof-placed solar energy installations. The company has now signed several deals with, among others, Skanska and NCC. The assignments include integrated solar cell facades, facade renovations and large-scale roof-placed solar energy solutions. The projects are planned to start in Q3-Q4 2023 and Q1 2024. The total order value for the assignments amounts to approximately SEK 34 million.
Fasadsystem in Stenkullen has been part of the Soltech Group since 2020. They offer different types of solar facades and roof-mounted solar energy solutions, in addition to the core competence in façade contracting as well as glass and aluminium work.
Now the company has won several new projects. Among other things, Fasadsystem will help the construction group Skanska with the renovation of a large existing glass façade in Gothenburg. Högskolan Dalarna will get a black, shimmering solar facade of about 600 sqm and Remondis in Hovmantorp will get a large roof-placed solar cell installation. The rooftop solar cell installation will cover an area of close to 1,000 sqm and have an installed capacity of 258 kW.
In line with Soltech's transformation strategy, Fasadsystem has added solar energy services to its core competencies since becoming part of the Group. Something that is now once again evident when the new projects span traditional facade renovations to the installation of integrated and technically complex solar cell facades. The company's CEO Tommie Standerth is proud of the orders and of the company's broad competence.
– We are very pleased to have been entrusted with carrying out several new prestige orders. In addition to deepening our cooperation with companies such as Skanska and NCC, it feels great that we can offer a broad palette of competitive services. It is Fasadsystem's employees who make this possible and we look forward to starting the new projects, says Tommie Standerth, CEO of Fasadsystem.
Soltech Energy's CEO, Stefan Ölander, comments on the report for the second quarter of 2023 at Nyhetsbyrån Direkt
Watch the interview here:
https://www.youtube.com/watch?v=ON1DXZlnnLU
Strong profitability improvement and high growth
CEO comment:
Soltech once again delivers both strong growth and strong profitability.
EBITDA is SEK 31.8 million for the quarter, which is an increase of SEK 76 million compared to last year and our organic growth remains high with 31% in the quarter. The improvement in profitability also results in a significantly higher cash flow from operating activities, which amounted to SEK 40.9 million in the quarter. Our focus on high quality solutions with specialist competencies in solar, roof, façade and electrical technology is starting to pay off and this is the third profitable quarter in a row.
We have a strong quarter behind us and are in the middle of an exciting fall with great business opportunities in all our segments. Not least in solar parks and battery system solutions, where we have many interesting projects coming .
SECOND QUARTER HIGHLIGHTS
• Total revenue increased by 70% to SEK 743.3 (437) million. Growth is driven by both acquisitions and organic growth
• The Group's organic growth was 31% (35%), adjusted for the effects of exchange rate fluctuations. All segments show good organic growth with continued high demand for services where the solar transformation contributes to new business opportunities
• EBITDA amounted to SEK 31.8 (-44.2) million, the profitability improvement is attributable to a continuous focus on profitability, hard work, synergies and improved purchasing processes
• Operating profit (EBIT) amounted to MSEK 14.4 (-46.7).
• Cash flow from operating activities amounted to MSEK 40.9 (-42)
• Earnings per share before and after dilution amounted to SEK -0.05 (-0.42)
SIGNIFICANT EVENTS DURING THE QUARTER:
• This is the Group's first financial report prepared in accordance with IFRS. Comparative figures have also been recalculated
• Soltech has on April 3, through its subsidiary Takorama AB, acquired 100% of the electrical engineering company Din Elkontakt i Kungälv AB
• Soltech's Annual General Meeting was held on May 11
FIRST HALF OF THE YEAR IN BRIEF
• Total revenue increased by 96% to SEK 1,426.3 (724.4) million. Growth is driven by acquisitions and organic growth
• The Group's organic growth amounted to 39% (39%), not affected by exchange rate fluctuations. All segments show good organic growth with continued high demand for services where the solar transformation contributes to new business opportunities
• EBITDA amounted to SEK 39 (-74.4) million, the profitability improvement is attributable to a continuous focus on profitability, hard work, synergies and improved purchasing processes
• Operating profit (EBIT) amounted to MSEK 4.9 (-83.8).
• Cash flow from operating activities amounted to MSEK 0.4 (-113)
• Earnings per share before and after dilution amounted to SEK -0.35 (-0.85)
Soltech company Provektor has been commissioned to install a more than 5,200 sqm roof-placed solar installation for Åkerholmen Lantbruk in Falköping, where 750 dairy cows produce tens of thousands of liters of milk daily. The solar panels will supply the cow sheds with solar electricity that will power milking machines, fans and coolers for the milk produced. Construction of the installation is expected to start in September.
Provektor is the Soltech Group's largest company in electrical engineering and has deep expertise in electrical installation and automation. Since becoming part of the Group, they have also deepened their solar energy expertise. The company has 13 locations in Skaraborg, Skåne and Halland and currently has approximately 150 employees.
Provektor will now construct its largest solar energy installation to date when Åkerholmen Lantbruk will get a rooftop solar solution of just over 5,200 square meters. The farm is run by Morgan and Camilla Dahlberg and is home to 750 dairy cows and another 1,150 young animals. According to Morgan, the choice of energy solution fell on solar cells was an obvious choice. Both in terms of smart use of unused space but also in terms of maintenance.
– Animal welfare and planning are key for us. I want an energy solution that doesn't take my time and requires minimal maintenance. Since we need our land for grazing and grain, a rooftop solar solution is therefore a good fit. We also have great confidence in Provektor and it will be fun to get our own solar energy solution, says Morgan Dahlberg, farmer.
Agriculture with great solar conditions
Agriculture often has good conditions for solar panels with large unused roof areas. But with milking machines, coolers, fans, lighting and agricultural machinery, an electricity supply that can cope with the high electricity consumption is also required. Something that Provektor has now been entrusted to provide Åkerholmen Lantbruk with.
– This project is very exciting for us. Åkerholmen has perfect installation conditions with large metal roofs with suitable slopes. In addition, we get to work in a beautiful environment and we looking forward to ensuring that agriculture can utilize the sun's rays onwards, says Johan Svensson, Project Manager, Provektor.
Two Soltech companies, Takab i Falun and Borlänge-based E-Mobility, will jointly carry out several assignments for tenant-owner associations in Rättvik and Avesta. The assignments consist of roof renovation, sheet metal work, IMD solutions* and about 1,500 sqm of solar energy distributed over six buildings. The projects start in August and the order value amounts to approximately SEK 11 million.
Soltech has a growth strategy with acquisitions in the solar, roof, façade and electrical engineering industries. Something that builds a group with cross-industry competencies. The goal is then for the companies create synergies such as business advantages for the companies but also predictability for the customers. Something that has now happened when Soltech's two companies based in Dalarna collaborate in new joint deals in Rättvik and Avesta.
The Soltech companies that will carry out the work are Takab i Falun and Borlänge-based E-Mobility. Firstly, Takab will carry out roof renovation on all buildings, including sheet metal work. When the new roofs are in place, E-Mobility will then install approximately 1,500 sqm of solar panels distributed over the six buildings. For the tenant-owner association in Rättvik, E-Mobility will also install smart IMD solutions connected to the solar panels that reduce the total electricity cost for all residents.
– These deals are clear examples of the benefits that are created when our companies work together. Takab i Falun, which has deep roofing expertise but now also solar energy expertise, starts the work, after which Martin Götesson and the team at E-Mobility install solar panels and associated IMD solutions. The customer gets talented entrepreneurs who also have the ambition to collaborate throughout the project, which makes everyone a winner, says Stefan Ölander, CEO of Soltech Energy.
*IMD solutions linked to solar energy solutions create smarter subscription solutions and lower the total electricity cost for all tenant-owners
