Original-Research: MPC Energy Solutions N.V. - from NuWays AG 02.05.2025 / 09:00 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group.

Original-Research: MPC Energy Solutions N.V. - from NuWays AG

02.05.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to MPC Energy Solutions N.V.

     Company Name:                MPC Energy Solutions N.V.
     ISIN:                        NL0015268814

     Reason for the research:     Update
     Recommendation:              BUY
     from:                        02.05.2025
     Target price:                NOK 15.50
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Christian Sandherr

Good start into the year: Q1 EBIT turns positive

Q1 proportionate energy output increased slightly by 2% yoy to 29 GWh
despite the sale of its CHP plant in Puerto Rico at the end of last year
(6-7 GWh impact). Mexico and El Salvaor on the other hand show strong
operational developments, overcompensating for that. As a result,
proportionate group sales in Q1 stood at $ 2.9m ($ +0.1m yoy).

The goup's consolidated EBIT turned positive at $ 0.1m, a significant
improvement compared to last year's $ 0.4m loss. This is mainly due to
cost-cutting measures (e.g. reduced headcount) bearing fruit.

Sale of Colombian assets progressing. As highlighted during the Q4 earnings
call, MPCES initiated the sales process of its two Colombian operational
projects (39MW) due to the challenging situation in that region, triggering
significant expenses to guarantee the safety of employees. Conservatively
assuming a certain discount to the book value ($ 17m), MPCES should be able
to receive some $ 15m, eNuW.

Reduced development efforts. With the sale of a Colombian development
project in Q1, the pipeline now consists of two projects with a total
capacity of 90MW. At the current development projects, MPCES should be able
to receive roughly $ 40k per MW.

Guatemala project to begin producing electricity in July. In February 2024,
MPCES begun construction of its 66MW PV project in Guatemala. The mechanical
completion is expected to take place in May, followed by the grid connection
at the end of June. While the company initially planned to sell a 49% stake
to a co-investor, management decided to keep full ownership of the project,
which is expected to generate annualized sales of $ 8m with an 80% EBITDA
margin, roughly doubling its production portfolio (in terms of GWh).

No liquidity concerns. Thanks to the pending inflows from the sold
development project and the two Colombian assets that are expected to be
sold this year, MPCES should be well capitalized. In fact, management
confirmed to plans to redistribute cash to shareholders once it becomes
available.

We confirm our BUY rating with an unchanged NOK 15.5 PT (old: NOK 14) based
on sum-of-the-parts (SOTP) valuation, separately accounting for the value of
its current IPP portfolio (NPV) and its development backlog (multiple). This
is largely inline with a 20% discount to the projects' book values.


You can download the research here: http://www.more-ir.de/d/32404.pdf
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NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
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Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

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2128644 02.05.2025 CET/CEST