ONDE with backlog of PLN 900 million at the end of the Q1 2023

In the first quarter of 2023, the ONDE performance was affected by the seasonality and high prices of materials. At the same time, in this period the Company signed contracts of the value twice as high as in the Q1 2022. Therefore, the Management Board looks with optimism to the further part of the year.

In the 1Q 2023, the listed Company specialising in construction of RES system achieved the income of PLN 182.7 million, versus PLN 179 million in the same period of the previous year. However, due to prices of materials, components and general macroeconomic situation still negatively influencing the profitability, ONDE was not able to achieve profit. In the first three months of 2023, the Company noted PLN 3.3 million of the operating loss versus the profit of PLN 1 million a year ago. The net result was at the level of PLN -4.9 million versus the profit of several thousand zloty in the 1Q 2022.

‘In the sector in which we operate, the first quarter is characterised by worse results, when compared to the later periods. This time, they were additionally affected by several contracts, for which budgets were developed before the rapid increase in material prices’ says Paweł Średniawa, President of ONDE SA. ‘However, in the Q1 2023 alone we signed contracts at current prices, of the total value of PLN 163 million, and this is the amount 80 percent higher than in the same period a year ago. This pool also includes a large contract in Lithuania, of EUR 26 million. Changing proportions will result in improvement in the profitability later in the year. Currently, our portfolio of orders has a value of ca. PLN 900 million and its level is similar to that of the previous year.

Recent ONDE contracts also include another order abroad, concerning works on construction of the 80 MW wind farm in Lithuania and the largest in the Company history PV contract, covering the construction of three power plants located in Poland, of the total capacity of 122 MW.  Thus, the total capacity of systems constructed by the Company has already exceeded 4 GW.

In recent months, with the liberalisation of the 10H Distance Act, the legislation environment of the company has also changed positively. The Cabinet is also working on updating the PEP 2040 assumptions. According to the declarations of the Ministry of Climate and Environment, the target installed capacity in RES is to increase to 50 GW already in 2030, with the current capacity of 22 GW.

‘A strong focus on RES in Poland will significantly expand this market, and ONDE, as one of its leaders, will definitely benefit from this. Liberalisation of the 10H Distance Act, although it is not an ideal solution, will unlock some of the potential in the wind sector. Shortening of the minimum distance between a wind farm and buildings to 700 m will allow to construct about 3–4 GW of new power to 2030. It will also enable application of more modern technologies and devices of much higher capacity’ adds Paweł Średniawa.

‘Concerning the developer sector, we maintain intent to sell the Cyranka photovoltaic farm, and the obtain funds will allow us to continue development of other projects and execution of new own PV farms.’ informs Paweł Średniawa.