Press release
2020 annual results
Net income, Group share up sharply: +25%; Significant growth in EBITDA: +13%
Securing future growth: 100% biomass conversion and extension of
Structural commitments in favour of the energy transition: an energy mix of over 90% in renewables by 2025 and almost 100% by 2030
“In 2020 we generated very strong results, with EBITDA up 13% and net income, Group share posting a sharp rise of 25%. These results are thanks to the hard work of Albioma’s teams who I would like to thank and congratulate for their commitment throughout the health crisis.
During the year, and despite the difficult context, we also finalised the biomass conversion project of our ALM3 plant in
Lastly, we signed various projects in line with our strategy which will contribute significantly to growth over the coming years: conversion and extension of the contract for the Bois-Rouge power plant (completely discontinuing coal) in
All of these measures make us confident in our ability to meet the new objectives that the Group has set for 2025 and 2030: respectively over 90% and nearly 100% renewable energy in our energy mix,” commented
Consolidated key figures for 2020
In millions of euros (audited figures) | 2020 | 2019 (reported) | Change % |
Revenue | 506.7 | 505.7 | +0% |
EBITDA | 206.4 | 182.9 | +13% |
Net income | 64.4 | 54.2 | +19% |
Net income (Group share) | 55.3 | 44.1 | +25% |
Revenue amounted to €506.7 million, stable compared with the previous year. Stripping out the impact of changes in fuel prices (-€13 million) and the currency effect related to the decline of the Brazilian real (-€7.1 million), it was up by 4%.
EBITDA for the year rose by 13% to €206.4 million thanks to:
- the good operational performance of the power plants in all regions despite the COVID-19 pandemic,
- the full-year effect of the latest riders in relation to the investments to bring the thermal power plants into compliance with the IED Directive,
- the biomass conversion of unit 3 of Albioma Le Moule (ALM 3), since last November,
- the increase in the average sales price in
Brazil due to new contracts coming into force.
Net income, Group share was up 25% to €55.3 million.
Highlights
Operations:
§ COVID-19: good management of the health crisis; normal functioning of the thermal and solar plants thanks to the mobilisation of the teams
Development:
- Conversion of French Overseas plants to 100% biomass:
- Restart of unit 3 of Albioma Le Moule (ALM3) in
Guadeloupe , after conversion works - Signing of a contract for
Albioma Bois-Rouge (ABR) onReunion Island for the conversion and the extension of the electricity sales agreement until 2043: complete discontinuation of coal in the plant
- Restart of unit 3 of Albioma Le Moule (ALM3) in
- Obtaining 40 MWp of solar power projects during the last calls for tenders from the French Energy Regulator (Commission de Régulation de l’Énergie - CRE)
- In
Brazil , commissioning of the Group’s fourth power plant, Vale Do Paraná (48 MW) - First steps in geothermal energy: acquisition of a plant in
Turkey , Gümüşköy (13 MW)
Financing & stock market:
- Issue of the first “Sustainability-Linked Euro PP”
- Listing: inclusion in the SBF 120 and CAC Mid 60 indices
France
Thermal biomass
Very good availability of the thermal power plants
Despite the COVID-19 context, and excluding the shutdown of ALM3 due to conversion work, the availability of the thermal power plants in
Total electricity production from the thermal plants in Overseas France was down slightly to 1,940 GWh compared with 2,061 GWh in 2019: excluding ALM3, production was stable compared with 2019.
EBITDA for the business totalled €162.3 million, up 18% compared with 2019 (€137.4 million), thanks to the full-year effect of the latest riders in relation to investments to bring the thermal plants in Overseas France up to IED standards and the good availability of the plants.
Construction and development of projects
100% biomass for unit 3 of Albioma Le Moule (ALM3) in
Unit 3 of the Le Moule plant in
Green light for the 100% biomass conversion of the
On
The CRE’s assessment also provides for an investment budget necessary to extend by 15 years the operation of the Group’s two oldest units (ABR1); the power purchase agreement was therefore extended from 2027 to 2043 for ABR1.
Solar power
Slight increase in production and commissioning of new plants
Electricity production from the solar business amounted to 125 GWh, compared with 121 GWh in 2019, up 3%. This mainly stems from the commissioning of new plants (in
EBITDA for the business totalled €34.8 million in 2020 compared with €36.3 million in 2019.
Project development
40 MWp of Solar power projects secured in 2020
The Group continued to develop its solar power business, winning 40 MWp of projects across all regions. In particular, it won an aggregate capacity of 24.6 MWp in the governmental call for tenders in areas not connected to mains electricity. This capacity is distributed across 44 projects (25 with storage and 19 without storage) located in
2021 Finance Act: changes in the regulatory environment
Article 54 sexies of the 2021 Finance Act voted on
Thermal biomass
Good operational performances from the plants
Production in
EBITDA reached €12 million in 2020 compared with €10.7 million in 2019, thanks to a positive price effect and non-recurring financial income of €2.4 million due to the approval of the judicial recovery plan of our sugar partner adjacent to our
Project development
Commissioning of the Group’s fourth 100% bagasse power plant
On
Geothermal energy
Project development
Acquisition of the Gümüşköy power plant (gross capacity of 13 MW)
The Group announced in January that it has completed the acquisition of a majority stake (75%) in the geothermal energy producer Gümüşköy (in the
Commissioned in 2013, the Gümüşköy power plant uses heat from four production shafts to generate electricity under the terms of an operating licence valid until 2040 (with scope to extend for an additional 10-year period). The plant currently exports up to 45 GWh of renewable electricity to the grid annually, with a dollarised feed-in tariff of approximately USD 105/MWh, valid until the end of 2023. With the support of the existing teams which were taken over by
With an installed capacity of more than 1,600 MW,
Joining the SBF 120 index
Following the quarterly review of the Euronext Paris indices, the scientific advisory board of the indices decided to include
Inclusion in this benchmark index, which covers the 120 largest stocks on the
Issue of the first "Sustainability-Linked Euro PP" for a total of €100 million for seven and eight years
On
By setting up this funding,
- more than 80% renewable energy by 2023, in line with its previous announcements;
- more than 90% renewable energy by 2025.
The Group's ambition is to achieve a 95% to 100% share of renewable energy in its mix by 2030.
Depending on whether the defined targets are met, a margin adjustment mechanism (bonus/malus) that may reach up to 25 basis points will produce a variation in the interest rate applying to the bonds.
A strong balance sheet to finance growth
Consolidated gross financial debt excluding IFRS 16 was down in line with the repayment of loans relating to commissioned projects (IED and new photovoltaic power plants). It amounted to €901 million at the end of 2020, as compared with €938 million at the end of 2019. Project debt came to €789 million (compared with €834 million at the end of 2019). The net debt / EBITDA ratio over 12 rolling months improved by 3.8 times at
The Group’s cash and cash equivalents, including security deposits, amounted to €129 million at
Despite the economic downturn, the Group did not need to apply for any state aid implemented to support companies in difficulty, nor did it draw on its short-term credit lines. The Group still has sufficient resources to pursue its development.
Dividends
The Board of Directors will submit to the Shareholders' Meeting a proposal to distribute a dividend of €0.80 per share, up 14% compared with 2019, with an option for 50% to be paid in new shares. This proposal is part of a dividend growth policy with a target payout of around 50% of net income, Group share excluding exceptional items.
2021 objectives
For 2021, the Group announces targets for EBITDA of €206 to €216 million and net income, Group share of €53 to €59 million (including the acquisition of the Gümüşköy geothermal power plant in
Outlook
The Group aims to commit between €600-€800 million in investments over the period 2021-2025 whilst retaining a sound financial structure.
Next on the agenda: revenue for the first quarter of 2021 on
About | Contacts |
The Group operates in Overseas France, For 25 years it has been developing a unique partnership with the sugar industry, producing renewable energy from bagasse, a fibrous residue of sugar cane. The Group recently announced the acquisition of a geothermal power plant in | Investors +33 (0)1 47 76 67 00 Media Charlotte Neuvy +33 (0)1 47 76 66 65 presse@albioma.com |
The Group is listed in the Gaïa Index of responsible midcap companies. | www.albioma.com |
Appendices
Simplified consolidated income statement
In millions of euros | 2020 | 2019 Reported | Change % |
Revenue | 506.7 | 505.7 | +0% |
EBITDA | 206.4 | 182.9 | +13% |
Depreciation, amortisation, provisions and other | (84.0) | (74.9) | -12% |
Operating income | 122.5 | 108.0 | +13% |
Net financial income | (32.1) | (30.2) | -6% |
Tax | (26.1) | (23.7) | -10% |
Effective tax rate1 | 29.3% | 31.4% | |
Consolidated net income | 64.4 | 54.2 | +19% |
Net income, Group share | 55.3 | 44.1 | +25% |
Consolidated earnings per share (in euros) | 1.78 | 1.44 |
1. The standard tax rate is 28.3% (effective tax rate restated for the impact of non-deductible impairment losses and excluding
Simplified consolidated balance sheet
In millions of euros | ||
Assets | ||
17 | 17 | |
Intangible assets and property, plant and equipment 1 | 1,405 | 1,380 |
Other non-current assets2 | 30 | 37 |
Total non-current assets | 1,453 | 1,434 |
Current assets | 172 | 164 |
Cash and cash equivalents | 126 | 161 |
Total assets | 1,751 | 1,759 |
Equity and liabilities | ||
Shareholders' equity, Group share | 443 | 425 |
Non-controlling interests | 90 | 95 |
Total equity | 532 | 521 |
Current and non-current financial liabilities | 902 | 938 |
Lease liabilities related to right-of-use assets (IFRS 16) | 38 | 36 |
Other non-current liabilities | 133 | 121 |
Current liabilities | 145 | 143 |
Total equity and liabilities | 1,751 | 1,759 |
1. Including €28.5 million in right-of-use assets (IFRS 16)
2. Including deferred tax related to right-of-use assets (IFRS 16)
Simplified statement of consolidated cash flows
In millions of euros | 2020 | 2019 |
Cash flow from operations | 209.1 | 186.5 |
Change in the working capital requirement | (11.9) | 23.2 |
Tax paid | (23.5) | (36.9) |
Net cash flow from operating activities | 173.6 | 172.8 |
Operating capex | (20.8) | (17.4) |
Free cash-flow from operating activities | 152.8 | 155.5 |
Development capex | (107.7) | (131.7) |
Other/Acquisitions/Disposals | (1.1) | 0.2 |
Cash flow from investing activities | (108.8) | (131.5) |
Dividends paid to | (14.0) | (13.0) |
Borrowings (increases) | 149.3 | 226.3 |
Borrowings (repayments) | (171.3) | (130.1) |
Cost of financial debt | (31.8) | (30.7) |
Other | (8.5) | (9.2) |
Net cash flow from financing activities | (76.3) | 43.3 |
Currency effect on cash | (3.7) | (1.4) |
Net change in cash and cash equivalents | (35.9) | 65.8 |
Opening cash and cash equivalents | 161.1 | 95.3 |
Closing cash and cash equivalents | 125.2 | 161.1 |
Attachment
- Albioma_CP_20210304_ENG
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