hep global GmbH, the Baden-Württemberg-based specialist in solar parks and solar investments, looks back on a generally satisfactory fiscal year 2023. The growth trend in total consolidated revenue seen in recent years continued, with revenue rising from €67.9 million to €91.0 million.
hep global GmbH: Consolidated revenue for 2023 reached €73.3 million, and consolidated EBIT rose to €3.1 million
At €73.3 million, consolidated revenue was below the previous year’s figure of €94.8 million, but well above the forecast range of €50 million to €60 million. The decline in revenue, as forecast, is attributable to the fact that, as expected, no solar parks under construction were completed in 2023. Accordingly, project progress had a positive offsetting effect, resulting in a change in inventory of €16.9 million for solar parks under construction. These will be recognized as revenue in 2024.
In the Services segment, hep generated revenue of €66.3 million (2022: €86.5 million). Revenue from project development services was driven in particular by the sale of projects in Japan and Canada to German fund companies, as well as by the sale of projects in the U.S. The sale of the largest project in Canada alone generated revenue of €42.2 million.
In the Investments division, new business performed well, as three additional specialized AIFs were launched. For these “Article 9 funds,” which comply with the EU sustainability taxonomy, limited partnership capital totaling €16.3 million was raised in 2023. In the existing business of the Investments division, this included €35.4 million for the public AIF HEP – Solar Green Energy Impact Fund 1 (SGEIF 1).
The hep global Group’s earnings performance in fiscal year 2023 was satisfactory given the general market environment, which was characterized by persistently high inflation and correspondingly high interest rates in the core markets. Consolidated earnings before interest and taxes (EBIT) rose from €2.1 million to €3.1 million, falling within the forecast range of €0 to €5 million. Consolidated net income increased significantly from €0.4 million to €1.7 million.
Forecast for the 2024 fiscal year
For the 2024 fiscal year, management forecasts consolidated revenue of between 70 and 75 million euros. Revenue growth will be driven, among other factors, by the completion of construction projects in the U.S. Consolidated earnings before interest and taxes (EBIT) are expected to fall within a range of 0 to 5 million euros.
In 2024, hep will continue to expand its business in the European market and its project pipeline. To this end, the cooperation agreement concluded in 2023, which grants hep exclusive access to over 10,000 sites in central Germany, is to be supplemented by further comparable agreements. Additional contributions are expected from development agreements already concluded in the first half of 2024, which provide for development and construction exclusively for individual investors who will provide the financing. In all markets, hep will focus on securing additional solar projects. This initiative is to be supported and accelerated by the 8% Green Bond 2023/2028 (WKN: A35148, ISIN: DE000A351488), which is currently being placed.
hep solar
hep solar is a specialist in solar investments and solar power plants. This owner-managed family business based in Baden-Württemberg develops, builds, operates, and finances solar power plants around the world, with a particular focus on Germany, Japan, and North America. For over 15 years, hep solar has combined expertise in the operational management of solar power plants with a high level of financial expertise. The company covers the entire solar energy value chain: from project development and construction to long-term operation. Through international solar investments, hep solar offers investors the opportunity to participate in the global expansion of solar energy. hep solar currently employs approximately 200 people worldwide, with offices in Germany, Japan, the U.S., and Canada.