The Managing Board of SMA Solar Technology AG (SMA/FWB: S92) is adjusting its earnings guidance for fiscal year 2021. This is due to the ongoing negotiations regarding an existing service agreement in the area of operation and maintenance services for photovoltaic power plants (O&M business). Based on the resulting one-off effect, the SMA Managing Board now expects an EBITDA between €20 million and €30 million for fiscal year 2021 (previously: €50 million to €65 million).
“The possible early dissolution of an existing O&M agreement is a unique case,” said SMA Chief Executive Officer Jürgen Reinert. “The reason for the ongoing negotiations with our customer are defects in some of the solar parks to be maintained by SMA, which only became apparent after the contract was concluded. It would only have been possible through unjustifiable expenses for SMA to fulfil its contractual obligations regarding the performance of the PV power plants. Accordingly, after thorough consideration, we have decided to aim for a cancellation agreement in order to shield SMA from greater damage. Our decision also expresses our responsible handling of long-term risks for the company as well as our high quality standards.”
The Managing Board sees positive medium-term business prospects for SMA: “With the SMA strategy 2025 we have created an excellent basis for growth and to profit from the enormous potential of the accelerating decarbonization, digitalization, and decentralization of the global power supply.”
As a leading global specialist in photovoltaic and storage system technology, the SMA Group is setting the standards today for the decentralized and renewable energy supply of tomorrow. SMA’s portfolio contains a wide range of efficient PV and battery inverters, holistic system solutions for PV and battery-storage systems of all power classes, intelligent energy management systems and charging solutions for electric vehicles and power-to-gas applications. Digital energy services as well as extensive services up to and including operation and maintenance services for PV power plants round off SMA’s range. SMA inverters with a total output of around 110 gigawatts have been installed in more than 190 countries worldwide. SMA’s multi-award-winning technology is protected by around 1,700 patents and utility models. Since 2008, the Group’s parent company, SMA Solar Technology AG, has been listed on the Prime Standard of the Frankfurt Stock Exchange (S92) and is listed in the TecDAX index.
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This corporate news can contain future-oriented statements. Future-oriented statements are statements which do not describe facts of the past. They also include statements about our assumptions and expectations. These statements are based on plans, estimations and forecasts which the Managing Board of SMA Solar Technology AG (SMA or company) has available at this time. Future-oriented statements are therefore only valid on the day on which they are made. Future-oriented statements by nature contain risks and elements of uncertainty. Various known and unknown risks, uncertainties and other factors can lead to considerable differences between the actual results, the financial position, the development or the performance of the corporation and the estimates given here. These factors include those which SMA has discussed in published reports. These reports are available on the SMA website at www.SMA.de. The company accepts no obligation whatsoever to update these future-oriented statements or to adjust them to future events or developments.