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Alternus Clean Energy Continues Deleveraging Program by Removing Additional $30 Million of Debt, Improving Shareholder Equity by Approximately $4 Million

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Alternus Clean Energy (NASDAQ: ALCE) has completed the sale of certain SPVs to majority shareholder Alternus Energy Group Plc, removing approximately $30 million in debt and payables while improving shareholder equity by about $4 million. The company has now reduced total debt by approximately $130 million and improved shareholders' equity by over $50 million through recent divestments. ALCE is diversifying beyond utility solar into microgrids and battery storage, and has relocated its headquarters to New York, NY to be closer to financial partners.

Alternus Clean Energy (NASDAQ: ALCE) ha completato la vendita di alcune SPV al suo azionista di maggioranza Alternus Energy Group Plc, eliminando circa 30 milioni di dollari di debiti e pagamenti, migliorando nel contempo il patrimonio netto degli azionisti di circa 4 milioni di dollari. L'azienda ha ora ridotto il debito totale di circa 130 milioni di dollari e ha migliorato il patrimonio netto degli azionisti di oltre 50 milioni di dollari attraverso recenti disinvestimenti. ALCE sta diversificando le sue attività oltre il solare per utility, entrando nel settore delle microreti e dello stoccaggio di batterie, e ha trasferito la sua sede a New York, NY, per essere più vicina ai partner finanziari.

Alternus Clean Energy (NASDAQ: ALCE) ha completado la venta de ciertas SPV a su principal accionista, Alternus Energy Group Plc, eliminando aproximadamente 30 millones de dólares en deudas y cuentas por pagar, mientras mejora el patrimonio neto de los accionistas en aproximadamente 4 millones de dólares. La compañía ha reducido su deuda total en aproximadamente 130 millones de dólares y ha mejorado el patrimonio neto de los accionistas en más de 50 millones de dólares a través de recientes desinversiones. ALCE se está diversificando más allá de la energía solar de servicios públicos hacia microredes y almacenamiento de baterías, y ha trasladado su sede a Nueva York, NY, para estar más cerca de sus socios financieros.

Alternus Clean Energy (NASDAQ: ALCE)는 주요 주주인 Alternus Energy Group Plc에 특정 SPV의 매각을 완료하여 약 3,000만 달러의 부채와 미지급금을 제거하고 주주 자본을 약 400만 달러 개선했습니다. 회사는 최근 divestments를 통해 총 부채를 약 1억 3,000만 달러 줄이고 주주 자본을 5천만 달러 이상 개선했습니다. ALCE는 유틸리티 태양광을 넘어 마이크로그리드와 배터리 저장소로 다각화하고 있으며, 금융 파트너와 더 가까워지기 위해 뉴욕, NY로 본사를 이전했습니다.

Alternus Clean Energy (NASDAQ: ALCE) a finalisé la vente de certaines SPV à son actionnaire majoritaire Alternus Energy Group Plc, supprimant environ 30 millions de dollars de dettes et de créances tout en améliorant l'équité des actionnaires d'environ 4 millions de dollars. L'entreprise a maintenant réduit sa dette totale d'environ 130 millions de dollars et a amélioré l'équité des actionnaires de plus de 50 millions de dollars grâce à des désinvestissements récents. ALCE se diversifie au-delà de l'énergie solaire utilitaire vers les microréseaux et le stockage de batteries, et a déplacé son siège social à New York, NY, pour se rapprocher de ses partenaires financiers.

Alternus Clean Energy (NASDAQ: ALCE) hat den Verkauf bestimmter SPVs an den Mehrheitsaktionär Alternus Energy Group Plc abgeschlossen, wodurch etwa 30 Millionen Dollar an Schulden und Verbindlichkeiten beseitigt und das Eigenkapital der Aktionäre um etwa 4 Millionen Dollar verbessert wurde. Das Unternehmen hat nun die Gesamtschulden um etwa 130 Millionen Dollar gesenkt und das Eigenkapital der Aktionäre durch jüngste Desinvestitionen um über 50 Millionen Dollar verbessert. ALCE diversifiziert sich über die Versorgungs-Solarenergie hinaus in Mikronetze und Batteriespeicher und hat seinen Hauptsitz nach New York, NY verlegt, um näher bei den Finanzpartnern zu sein.

Positive
  • Reduced total debt by approximately $130 million
  • Improved shareholders' equity by over $50 million
  • Removed $30 million in debt and payables through recent SPV sale
  • Strategic diversification into higher margin segments (microgrids, battery storage)
Negative
  • Selling assets to majority shareholder could raise conflict of interest concerns
  • Divestment of revenue-generating assets may impact short-term income

Insights

This strategic deleveraging move significantly improves ALCE's financial health, removing $30 million in debt and adding $4 million to shareholder equity. The total debt reduction of $130 million and $50 million improvement in shareholders' equity marks a substantial balance sheet restructuring. The pivot from utility-scale solar to higher-margin segments like microgrids and battery storage could enhance profitability, though execution risks remain. The headquarters relocation to New York's financial district suggests a stronger focus on capital markets access, critical for funding the strategic pivot. The transaction with majority shareholder AEG raises questions about deal terms and potential conflicts of interest, but the overall impact on financial metrics is positive. The improved balance sheet structure could help maintain Nasdaq compliance and facilitate future capital raising efforts.

The strategic shift from utility-scale solar to diversified clean energy operations, including microgrids and battery storage, aligns with industry trends toward integrated energy solutions. These segments typically offer higher margins and better returns on equity compared to traditional utility solar projects. The timing is opportune as the energy storage market is experiencing rapid growth, driven by grid modernization needs and renewable integration demands. However, this transition will require new technical expertise, market relationships and potentially different financing structures. The move to discontinue non-core activities shows disciplined portfolio management, though success in new segments will depend on execution capability and market penetration strategy.

New York, New York--(Newsfile Corp. - November 12, 2024) - Alternus Clean Energy, Inc. (NASDAQ: ALCE) ("ALCE", "Company") announces that it recently completed the sale of certain of its SPVs to Alternus Energy Group Plc. ("AEG") a majority shareholder of the Company. As a result, the Company has removed approximately $30 million in debt and payables from the consolidated financials and improved ALCE's shareholder equity by approximately $4 million.

ALCE has now reduced total debt by approximately $130 million, with resultant improvement in shareholders' equity of over $50 million with recent divestments and discontinuation of non-core or no longer economic activities. The Company is moving to widen its business activities and revenue streams beyond an exclusive focus on utility solar, in high margin and equity return segments such as microgrids, battery storage and other clean energy operations.

In addition, ALCE has relocated its headquarters from Ft. Mill, SC to 17 State Street, New York, NY to be closer to its financial partners and the investment community.

Vincent Browne, Chief Executive Officer of Alternus, stated: "The sale of these assets to AEG is another step in our broader effort to reduce debt, improve shareholder equity and position the Company for growth. Solidifying our position with Nasdaq is a crucial step in ensuring we have access to the equity capital we need to execute our strategy of evolving from an exclusive focus on utility scale solar to that of a more comprehensive energy provider going forward. We are also excited to announce our move to New York, NY, which will put us close to the capital markets and investment community."

Full details of the transaction can be found in the Company's Current Report on Form 8-K, filed with the Securities and Exchange Commission on November 8th.

About Alternus Clean Energy Inc.

The Company is a transatlantic clean energy independent power producer (IPP). We currently develop, install, own and operate utility scale solar parks in America and Europe. Our highly motivated and dynamic team at Alternus have achieved rapid growth in recent years. Our vision is to become a leading provider of 24/7 clean energy delivering a sustainable future of renewable power with people and planet in harmony. Alternus Clean Energy, Inc. (Nasdaq: ALCE). AEG is listed on the Euronext Growth Oslo exchange and headquartered in Ireland, while Alternus Clean Energy, Inc. is listed on Nasdaq and headquartered in the US. They remain as two separate legal entities.

Forward-Looking Statements

Certain information contained in this release, including any information on the Company's plans or future financial or operating performance and other statements that express the Company's management's expectations or estimates of future performance, constitute forward-looking statements. When used in this notice, words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions, as they relate to us or our management team, identify forward-looking statements. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company's management. Such statements are based on a number of estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond the control of the Company. The Company cautions that such forward-looking statements involve known and unknown risks and other factors that may cause the actual financial results, performance or achievements of the Company to differ materially from the Company's estimated future results, performance or achievements expressed or implied by the forward-looking statements. These statements should not be relied upon as representing Alternus' assessments of any date after the date of this release. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Media Contact: IR@alternusenergy.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229619

FAQ

How much debt did Alternus Clean Energy (ALCE) remove in November 2024?

Alternus Clean Energy removed approximately $30 million in debt and payables through the sale of certain SPVs to Alternus Energy Group Plc.

What is the total debt reduction achieved by ALCE through recent divestments?

ALCE has reduced total debt by approximately $130 million through recent divestments and discontinuation of non-core activities.

Where did Alternus Clean Energy (ALCE) relocate its headquarters in 2024?

ALCE relocated its headquarters from Ft. Mill, SC to 17 State Street, New York, NY.

What new business segments is ALCE expanding into?

ALCE is expanding into microgrids, battery storage, and other clean energy operations beyond utility solar.

Alternus Clean Energy, Inc.

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