Restart Energy is making losses

• The sharp drop in turnover in the first half of the year was driven by the reduction in the number of the company's projects in progress, as a result of the slow pace of tendering works in the PNRR, according to Restart Energy

• In the first half of last year, the company had sold the photovoltaic park in Sarmasag

Electricity supplier and builder of photovoltaic power plants Restart Energy One reported, for the first half of the year, a turnover of 36.6 million lei, down 70% compared to the first six months of 2023, as well as a loss of 7.9 million lei, compared to a net profit of 37 million lei, between January and June last year, according to a company report published on the website of the Bucharest Stock Exchange (BVB).

The strong decrease in turnover was determined by the reduction in the number of the company's projects in progress, as a result of the slow pace of tendering PNRR works. At the same time, the individual volume per project executed in the first half of 2024 was higher, which implies longer execution terms and billing at longer intervals, according to the Restart Energy report.

The reduction in turnover led to a decrease in operating expenses by 62%, up to 43.2 million lei. Operating expenses are mainly made up of merchandise expenses (32% of total operating expenses and raw material expenses, 26%). Personnel expenses decreased by 11%, up to 6.3 million lei, against the background of the decrease in the number of employees compared to the first semester of 2023, from 114 million lei in the first semester of last year to 104 million lei in the first semester from 2024.

From the financial activity, Restart Energy One registered a loss of 1.55 million lei, compared to a gain of 28.3 million lei in the first half of last year.

"Financial revenues were registered within the normal operating limit of the company. The low level compared to the previous period is not due to a change in activity. The company recalls the fact that, in the first semester of 2023, Restart Energy One sold the Sarmasag project, a transaction materialized through the transfer of the social parts of the project company (Comcris Energy), a fact reflected in the accounting on group 76 income accounts. Financial expenses decreased by 83%, up to 1.8 million lei in the first half of 2024. Financial expenses include the discharge of the shares in the SPV capitalized on the Upstream line by sale (being the expense correspondent of the income from the assignment of the parties social Comcris Energy)", Restart Energy explains the loss from financial activities.

The company has a bond issue listed on the BVB, on the Multilateral Trading System. The bonds, denominated in lei, mature in February 2026, have a maturity of five years and a fixed annual interest of 9%, payable semiannually.