Array Technologies, a U.S.-based solar tracking systems manufacturer, has reported a 49% increase in net profit with $59.07 million in 2020 from $39.74 million in 2019, despite a $9.77 million loss in the fourth quarter (Q4) of the financial year (FY) 2020.
The company reported a 34.69% jump in its revenue on the back of strong demand for solar energy projects. The net revenue stood at $872. 66 million in 2020, compared to $647.89 million in 2019. However, total revenue in Q4 2020 witnessed a 19.64% decline to $180.56 million, compared to $224.71 in Q4 2019.
The company’s earnings before interest, taxes, depreciation, and amortization (EBIDTA) was $160.53 million in 2020, a 31.81% increase compared to $121.78 million in 2019. Its basic and diluted earnings per share stood at $0.49 in 2020, compared to $0.33 in 2019.
Some of the large transactions for the company included a 1 GW single-axis solar trackers supply to RP Construction Services, 1.4 GW of DuraTrack HZ v3 trackers, and SmartTrack Software to Lightsource bp, valued at over $100 million.
The company also launched the Array Tech Research Center – located in Phoenix, Arizona, United States – to research, develop, and field-test advanced solar tracker technology.
Nipul Patel, Chief Financial Officer of Array commented, “Commodity prices and freight costs have increased significantly over the past several months as business activity levels are increasing in response to the availability of a COVID-19 vaccine and capacity that was idled during the pandemic comes back online. While we currently expect commodity prices and shipping costs to normalize, the low end of our Adjusted EBITDA guidance range contemplates a delayed return to a normal pricing environment.”
The company completed an amendment to its credit facility that reduced the drawn margin from LIBOR plus 400 basis points, with a floor of 5.0% to LIBOR plus 325 basis points, with a floor of 3.75%. The amendment is expected to reduce cash interest expense by approximately $5 million in 2021.
Array Technologies had earlier announced the closing of its upsized initial public offering after raising over $1 billion in one of the biggest solar initial public offerings in the world.