MPC Energy Solutions Shows Positive Q1 EBIT, Advances in Asset Sales

MPC Energy Solutions N.V. has shown a positive start to the year, with Q1 reporting a slight 2% increase in energy output to 29 GWh, despite the sale of its CHP plant in Puerto Rico. This performance was bolstered by strong operations in Mexico and El Salvador. The company's consolidated EBIT turned positive, reaching $0.1m compared to a $0.4m loss in the previous year, attributed to effective cost-cutting strategies.

The company is making progress on selling its Colombian assets, expecting to generate around $15m from the sale. Development efforts have been reduced, with two remaining projects totaling 90MW. Additionally, a significant 66MW PV project in Guatemala is set to begin electricity production in July, anticipated to significantly double MPCES's production capacity.

MPCES appears financially stable, with expected cash inflows from asset sales ensuring liquidity. The company maintains a buy rating with a target price of NOK 15.5, reflecting confidence in its valuation strategy.