MPC Energy Solutions Financial Update: A Mixed Outlook

MPC Energy Solutions has released its fourth-quarter financial results, presenting a mixed financial picture. The company outperformed its sales guidance for FY24, driven mainly by strong performance in El Salvador and Mexico. Energy output increased by 31% year-over-year to 116 GWh, with sales rising by 42% to $12.8 million. The EBITDA saw a significant 79% increase, reaching $7.9 million, supported by improved electricity prices and effective cost-cutting measures.

However, impairments have negatively impacted results, with reported group EBIT at $-13.3 million. These impairments primarily stem from divestments and corrections in Puerto Rico and Colombia. The challenging environment in Colombia has further affected profitability due to increased security costs.

Looking ahead, MPC Energy Solutions plans to reduce its development efforts, although the Guatemala project progresses as planned. The company maintains a "Buy" rating with a revised target price of NOK 14.