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Forever Following the Sun: What Happens to Solar Energy Companies? - Walla! Of money

2022-04-04T06:37:41.234Z


Sun investors are no longer warming the shares of solar energy companies, which concluded the annual reporting season with an average decline of about 12% in their price since the beginning of 2021


Forever Following the Sun: What Happens to Solar Energy Companies?

The sun of investors no longer heats the shares of solar energy companies, which summed up the annual reporting season by an average decrease of about 12% in their price since the beginning of 2021. This is compared to the Tel Aviv 125 index, for example, which rose 33.74% during that period

Roast Greenberg

04/04/2022

Monday, 04 April 2022, 09:19 Updated: 09:28

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The evaporation of the green buzz

on which the sector's shares carried contributed to the decline, with a change in the direction of investor movement towards areas that returned to attractiveness with the return of world economies to routine, such as real estate and finance.

A place for recognizing the importance of existing energy sources: oil and gas, and the sharp rise in their prices with the return to routine - and even more so with the start of the Russian-Ukrainian war, investors also returned to "classic" energy stocks



. In shares, most of them showed an increase in revenues along with a deepening of losses, after 2021 was mainly characterized by an increase in the prices of the raw materials from which the solar panels are made, which harmed their activity, along with an average increase of up to 5 times their transport prices.

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The five largest solar energy companies on the Tel Aviv Stock Exchange (Photo: Walla !, no)

Analyte - increase in value

One of those companies, however, has managed to stay green on investors' screens, climbing about 12.19% since the beginning of 2021.



Analyte, which is traded at a value of NIS 7.18 billion, is the highest value solar energy company among the solar companies traded on the Tel Aviv Stock Exchange. And the only one of the 5 largest companies to show an increase in value.



The company's revenues for the last fiscal year amounted to NIS 330.8 million after rising 36.9% compared to 2020. The company posted an operating profit of NIS 111 million, after rising 13.9%, beyond a net profit of NIS 70 million compared to a loss of NIS 70 million. NIS 141 million a year earlier, and a total loss of NIS 176.9 million.



Enlighten enjoyed the attention of investors mainly as a result of the expectation of rapid growth, which stems, among other things, from the acquisition of 90% of the shares of the American company Klinera at the end of June 2021 for about $ 390 million.



At the time of the deal, Klinera held a 12-gigabyte development project in the U.S. that became the target market for all solar energy companies after U.S. President Joe Biden announced $ 2 trillion in investments in the field.



Analyte presented that about 45% of its mature portfolio, which stands at about 3.6 gigawatts (of which the company's share stands at about 2.7 gigawatts), is located in the United States, 32% in Europe, and 23% in Israel .

Analite wind project in Croatia (Photo: PR)

Energix, a decrease of almost 15%

In contrast, Energix, the second largest Israeli solar giant on the Tel Aviv Stock Exchange, fell by about 14.91% from the beginning of 2021 to the end of last March.



Energix is ​​traded at a value of NIS 6.36 billion and showed a 1.35% increase in its revenues, along with a decrease in EBITDA and overall profit.

Its revenues were NIS 266.6 million for 2021, along with EBITDA of NIS 186.7 million, net profit of NIS 79.2 million, and total profit of NIS 5.1 million.



Energix also reported during the third quarter of 2021 on the acquisition of an American company, NCRE, which has a backlog of projects of about 1.8 gigawatts, for which it will pay about $ 33 million.



But Energix, unlike Analyte, at least according to analysts' estimates, is having a hard time deploying its projects in the United States. -6 gigawatts in the initiation phase, alongside 7 g

Ofer Yanai, Chairman of Nofar Energy (Photo: Raz Ozir)

Nofar Energy - slightly different from the competition

The third largest company, Nofar Energy, which is traded on the Tel Aviv Stock Exchange at a value of NIS 2.96 billion, surprised with the highest revenues, which stood at NIS 360.7 million for 2021, along with an operating profit of NIS 9.6 million and a total profit of NIS 8.2 million.



The stock has declined 4.12% from the beginning of 2021 to the end of last March, and some explain this mainly due to the company's different from its other competitors, since most of its revenue came from solar system installations, rather than electricity sales.



The company presented in a presentation summarizing its activities for that period accumulated projects of about 2 gigawatts (solar and storage), part of which stands at about half, and it is estimated that it will generate about NIS 415 million in revenue, and about NIS 338 million in EBITDA.



It should be said that it is very possible that in the long run this is a good investment, as renewable energy may be the energetic future we will leave to our children, but at the moment investors seem to be mostly interested in present results, expecting more projects to become profitable.

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Tags

  • solar energy

  • green energy

  • stock

  • The Tel Aviv Stock Exchange

Source: walla

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