Simtel posts a tripling of consolidated net profit in the first three months of 2024

Simtel Team (BVB: SMTL), a Romanian engineering and technology company listed on the AeRO market of the Bucharest Stock Exchange and national leader in renewable energy, posted, at consolidated level, operating revenues of 45.9 million lei in the first quarter of 2024, down 30% compared to the same period last year, and a net profit of 5 million lei, a 199% appreciation compared to the first three months of 2023.

“The financial performance recorded in the first quarter of the year is in line with our expectations and reflects the evolution of our business model. More specifically, as of 2024, Simtel is going through a transition process to large-scale projects with a different mix between solutions installed on the ground versus those installed on the roofs of buildings. This means that the average size of our projects currently under implementation is 4.4 times larger than those implemented during 2023. According to our estimates, this trend will continue in the coming period for new projects that will be added to our implementation portfolio. Therefore, the budgeted revenues and expenses for this year will have a different dynamic compared to previous years, one that assumes an increase in revenues and expenses in the second part of the year, in line with the execution schedules for the new large-scale projects. Considering all these factors, we are optimistic about meeting this year’s revenue and expense budget. The contracts currently under negotiation or already signed, along with effective cost management measures, provide strong reasons to expect a favorable outcome by the end of the year,” stated Mihai Tudor, CEO and executive member of the Board of Directors of Simtel Team.

The consolidated financial results include the performance recorded by Simtel Team SA and the companies in the group: ANT Power Energy SRL (51%), Simtel Solar SRL Moldova (100%), Agora Robotics SRL (51%), Custom Soft Solution SRL: (29%), GES Furnizare SRL (62%), Plesoiu Solar SRL (98.60%), Simtel Industrial Control SRL (75%), SMTL Solar Ianca SRL (100%), SMTL Solar Anina SRL (100%), SMTL Solar Giurgiu SRL (100%) and SN Energie Company SRL (100%).

Regarding its own photovoltaic parks projects, in the first three months of 2024, Simtel acquired two projects ready for construction, Salonta and Iacobeni. The photovoltaic park in Salonta has a planned installed capacity of 5.35 MWp DC (peak power at the panels level), and the one in Iacobeni has a planned installed capacity of 5.38 MWp DC. Immediately after the purchase, the two projects entered the implementation stage.

Currently, Simtel owns seven photovoltaic park projects, which, at the time of completion, will have a total installed capacity of over 80 MWp and generate an annual production of over 107 GWh. Their development is proceeding according to plan. All projects have obtained Technical Approval for Connection (ATR). Three of these projects have not yet received construction permits, but the company’s management estimates that they will be obtained by the end of the first semester of the current year.

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Regarding the electricity supply activity carried out through GES Furnizare SRL (GES), a company in which Simtel Team SA holds a 62% stake, GES has signed several supply contracts for 2024 and 2025. According to the signed contracts, the company will deliver 100 GWh this year, which confirms the positive evolution of the new business line and the trust that the company’s partners have in the services that GES provides.

At the same time, the GES team is in an accelerated growth process, with the objective of consolidating the team and developing the portfolio of clients and services. The company’s vision is oriented towards the sustainable development of the green energy sector in Romania and the region.

Simtel Team is listed on the AeRO market of the Bucharest Stock Exchange as of July 2021 and is traded under the SMTL symbol. Currently, the company is in the process of being transferred to the Main Market of the Bucharest Stock Exchange. It anticipates completing this process before publishing the financial results for the first half of 2024.