VOLTALIA SA
Voltalia SA
Very strong growth in H1 2020
Growth confirmed, despite temporary activity delays and currency effects impacting 2020 EBITDA
Outstanding development and commercial activity since the beginning of the year
*** Voltalia (Euronext Paris ISIN code: FR0011995588), international player in renewable energies, announces today its H1 2020 results[2]. Voltalia will comment on its H1 2020 results and short to mid-term perspectives during a live webcast starting at 8.30 AM Paris time on Thursday 24, 2020. All connection details are available on our website: https://www.voltalia.com/uk/investors. "Voltalia recorded very strong growth in the first half of 2020. The contribution of new power plants, our expansion in Europe and Africa, the rebalancing towards solar and our strategy to develop Services to third-party clients supported this achievement. Voltalia's performance would have been even better without poor wind conditions in Brazil and currency variations. We adjust the 2020 EBITDA ambition to take into account a Brazilian real now weak and the effects of the covid-19 crisis on our construction sites and on our clients' activity but we confirm our year-end ambition of 1 GW of installed capacity. Looking beyond 2020, the momentum remains very strong. The record-high level of new contracts won since the beginning of the year (867 MW) supports our long-term capacity and results growth." comments Sébastien Clerc, CEO of Voltalia.
Key figures
H1 2020 total consolidated revenues stands at ?88.4 million, up by 73% at constant currency, and H1 2020 total consolidated EBITDA stands at ?23.8 million, up by 111% at constant currency. The EBITDA margin, at 27%, improvesby 5.3 points at constant currency, notably thanks to a better mix of activity in Services which is more than offsetting poor wind conditions in Brazil. Net profit (Group share), which is, as in the past, negative due to the seasonal nature of the wind resources of the power plants owned by Voltalia, also records a growth in volume with a net loss (Group share) increasing by 77% at constant exchange rates.
Business review
Energy sales: revenues and EBITDA growth thanks to portfolio growth and despite lower wind resource
H1 2020 revenues are ?62.1 million, up by 54% at constant currency, and EBITDA is ?32.9 million, up by 36% at constant currency, driven by the increase in installed capacity in operation across geographies, reaching 820 MW at the end of June 2020. The EBITDA margin is down by 7.1 points, impacted by lower wind resource in Brazil and the consolidation of Helexia.
Recently acquired Helexia, a solar rooftop and energy efficiency specialist consolidated since July 2019, represented 18% of H1 2020 energy sales. Helexia's revenues were 24% higher when compared with H1 2019 for an EBITDA margin of 35%, reflecting a less capital-intensive model than Voltalia's historical Energy sales business.
Services: lower internal EBITDA more than offset by higher external EBITDA to third-party clients
H1 2020 Services revenues were down 29% at constant exchange rates on H1 2019, with negative EBITDA reflecting lower internal sales which are eliminated in the consolidated accounts.
Overall, the increased share of external sales to third-party clients in the activity mix resulted in much lowereliminations, with Eliminations and corporate costs at ?7.2 million, down from ?14.7 million in H1 2019. This better mix contributed to the improvement of the total EBITDA in absolute terms and relatively to revenues, while illustrating once again Voltalia's integrated strategy combining Energy sales and Services.
Net result of -?16 million reflecting usual seasonality
Consolidated EBITDA stands at ?23.8 million, up by ?9.9 million (+111% compared with 2019 at constant currency) driven by the positive development in the business, and despite low wind resource and the weakening of the Brazilian currency (together -?13 million EBITDA impact). EBITDA margin gains 5.3 points at constant currency, reaching 27% of revenues, also supported by the better mix of activity in Services. Consolidated EBIT drops at ?1.2 million. Depreciation and Amortisation increase by ?4.1 million due to new plants commissioning and the consolidation of Helexia. The 2019 figures included EPC-related reversal of Provisions for ?6.2 million[5]. Financial result improves slightly (by ?0.4 million) due to the combined effects of lower interest rates for plants in Brazil and lower EUR/BRL exchange rate, with a total impact of ?4.4 million, partly offset by increased project debt and the consolidation of Helexia's debt. Taxes are up by ?3.4 million, mostly driven by the mix of activity with higher Services sales to third-party clients, and the integration of Helexia. Minority interests record a loss of ?2.3 million. Plants co-owned with minority partners have a slower profitability ramp-up profile than fully-owned plants. In H1 2020, Voltalia reports a ?15.8 million Net loss (Group share), up by ?7.1 million compared with H1 2019, consistent with the growth in activity. Voltalia's first semesters are characterized by seasonality with high wind regimes in Brazil skewed towards H2 (H2 production 70% higher on average than H1 for the last two years) and with H1 2020 not yet benefitting from the full contribution of new plants. Simplified consolidated balance sheet Voltalia's assets are mainly power plants in operation (78% of Property, plant and equipment), and in construction or in development. With 73% of its installed base in Brazil, Voltalia records a translation impact in H1 2020 related to the strengthening of the EUR against the BRL, which also reduces its debt in Brazilian real.
As of June 30, 2020, Fixed assets decline by ?21.2 million (-1.9%) compared with December 31, 2019 due to:
At June 30, 2020, the Group's cash position stands at ?160.8 million, down by ?108.9 million on 31 December 2019. This is essentially explained by Voltalia's investments, with cash used to temporarily bridge drawdowns of long-term project financing, saving interest charges. At June 30, 2020, the Group's financial debt -contracted in local currency and backed by power production plants- is ?627.2 million, down by ?29.0 million. This decrease is attributable to currency variations, which more than offset a ?63.0 million net increase in debt. Voltalia maintains a very robust financial structure, with a very low gearing of 51%[6] . The Group's financial debt is largely backed by power production plants for which debt is contracted in local currency, with an average residual maturity of 15 years. In addition, as of June 30, 2020, Voltalia has ?150 million of unused corporate revolving credit facilities. Developments since July 1st Voltalia announces today the release of a report by ESG agency Sustainalytics. Voltalia now ranks 7th within its industry group (482 companies), progressing compared with 2019 (16th). Topics audited included Corporate governance, Community relations, Business Ethics, Land Use and biodiversity. In Brazil, Voltalia launched in August the construction of VSM 4, a 59 MW wind plant in Voltalia's Serra Branca cluster, in the state of Rio Grande do Norte in Brazil, for a commissioning expected in H1 2021. Voltalia sold in August to Japanese construction firm Toda a 28 MW ready-to-build wind project located in its Serra Branca cluster. As part of this project, Voltalia will carry out construction, operation, maintenance, and administrative services for Toda. Beginning of September, Voltalia signed a 14-year power sale contract with Copel, a Brazilian utility company. Voltalia will build a 260 MW solar plant (SSM 3 to 6) in its Serra Branca cluster. The solar plant is expected to be commissioned in the first half of 2022. Voltalia announces today that it has won a Services contract with Vale and Cemig covering the Santo Inácio Wind Complex in Brazil which capacity amounts to 98,7 MW. For an initial 5 year-period, Voltalia will provide maintenance services on the electric balance of the plant and supervise operations provided by the turbine manufacturer, based on Voltalia's in-house performance analysis tool. In France, Voltalia commissioned in August a 3.9 MW solar shelter plant in the South Region which benefits from a 20-year power sales agreement. In September, Voltalia and its partner Ikea started marketing solar rooftop solutions to Ikea's clients. In Greece, Voltalia won 12 MW of new solar projects in August, expected to be commissioned during the first half of 2021. The Greek Regulatory Authority of Energy awarded Voltalia 20-year power sales agreements. Voltalia also won 10 MW of construction-and-maintenance contracts for a photovoltaic project owned by a third-party client who secured power sales agreements during the same auction. In Portugal, Voltalia announces today it has won new construction contracts, increasing its Portuguese backlog of construction contracts for third-party clients to a total of 300 MW. Growth trajectory confirmed despite short-term covid-19-related challenges As communicated this year, the sanitary and economic crisis makes Voltalia's environment less predictable. The three main risks identified by Voltalia were i) currency variations (mainly the Brazilian real); ii) the ability to carry out the construction of current and future Voltalia projects; and iii) the capacity of Voltalia's clients in Services (mainly development sales and construction projects) to move forward in their decision-making process. Short-term challenges In H1, Voltalia recorded low levels of wind in Brazil. Since the beginning of the year, Voltalia is also experiencing a continuous weak BRL against the EUR, with the EUR/BRL rate around 6.3 on average since the start of H2, compared with 5.4 in H1 2020 and 4.3 in H1 2019. In addition, while Voltalia-owned sites under construction have only suffered minor delays in H1 2020, as for VSM1 (163 MW), the Covid- 19 crisis now affects construction schedules. Originally delayed by a few weeks, projects are now behind by 4-6 months (VSM2&3 and Mana Storage) or even more (Cacao). Finally, certain Services' third-party clients are delaying contract signatures or notices to proceed. Rebasing 2020-2023 sequence of EBITDA ambitions accordingly
As a result, Voltalia now expects its 2020 EBITDA to reach around ?100 million (assuming average wind/solar/hydro resource from today), a 50%+ growth compared with 2019 and 90%+ growth at constant currency, but below its ?160-180 million initial ambition range. In 2021, once it will benefit from the contribution of the 1 GW portfolio of operating plants and normalizing Services, Voltalia's EBITDA is expected to reach around ?170 million (assuming average wind/solar/hydro resource and a EUR/BRL rate of 6.3). By 2023, with Voltalia benefiting from further capacity growth, EBITDA is expected to reach ?275-300 million, assuming a EUR/BRL rate of 6.3[7]. All capacity ambitions confirmed Despite construction delays, short and long-term capacity ambitions are confirmed: from 1 GW in operation expected by end 2020, capacity is expected to rise to 2.6 GW in operation and construction by end 2023. This ambition is strongly supported by recent long-term contracts wins: 867 MW of new contracts won since the beginning of 2020, after 389 MW in 2019 and 241 MW in 2018. All in all, Voltalia has already secured 92% (or 2.4GW) of its 2023 ambition. Recent wins strongly support the rebalancing of Voltalia's portfolio towards more solar (now 50% of all contracted capacity) and more Europe / Africa (34% of total contracted capacity). They also diversify the client base of Voltalia with over 400 MW signed with corporate clients.
Next on the agenda: Q3 2020 revenues on October 21, 2020
About Voltalia (www.voltalia.com) Voltalia is an international player in the renewable energy sector. The Group produces and sells electricity generated from wind, solar, hydraulic, biomass and storage facilities that it owns and operates.Voltalia has generating capacity in operation and under construction of more than 1.3 GW and a portfolio of projects under development representing total capacity of 8.5 GW. Voltalia is also a service provider and supports its investor clients in renewable energy projects during all phases, from design to operation and maintenance. As a pioneer in the corporate market, Voltalia provides a global offer to private companies, ranging from the supply of green electricity and energy efficiency services to the local production of their own electricity. The Group has 994 employees and is present in 20 countries on 4 continents and is able to act worldwide on behalf of its clients. Voltalia is listed on the regulated market of Euronext Paris, compartment B (FR0011995588 - VLTSA) and is part of the Enternext Tech 40 and CAC Mid & Small indices. The Group is also included in the Gaïa-Index, an index for socially responsible midcaps.
Installed capacity at end June 2020
*4 MW of solar and 12 MW thermal Electricity production report
*Includes the production of Oiapoque solar
Forward-Looking Statements This press release contains certain forward-looking statements relating to the business of Voltalia, which shall not be considered per se as historical facts, including the ability to manufacture, market, commercialize and achieve market acceptance for specific projects developed by Voltalia, estimates for future performance and estimates regarding anticipated operating losses, future revenues, capital requirements, needs for additional financing. In addition, even if the actual results or development of Voltalia are consistent with the forward-looking statements contained in this press release, those results or developments of Voltalia may not be indicative of their outcome in the future. In some cases, you can identify forward-looking statements by words such as "could," "should," "may," "expects," "anticipates," "believes," "intends," "estimates," "aims," "targets," or similar words. Although the management of Voltalia believes that these forward-looking statements are reasonably made, they are based largely on the current expectations of Voltalia as of the date of this press release and are subject to a number of known and unknown risks and uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievement expressed or implied by these forward-looking statements. In particular, the expectations of Voltalia could be affected by, among other things, uncertainties involved in Voltalia's produced electricity selling price, the evolution of the regulatory context in which Voltalia operates and the competitiveness of renewable energies or any other risk and uncertainties that may affect Voltalia's production sites' capacity or profitability of as well as those developed or identified in any public documents filed by Voltalia with the AMF, included those listed in Chapter 2 "Risk factors and risk management" of the 2019 Universal Registration Document(document de reference) filed with the French financial market authority (the Autorité des marchés financiers - the "AMF") on March 25, 2020. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements made in this press release will in fact be realized. Notwithstanding the compliance with article 223-1 of the General Regulation of the AMF (the information disclosed must be "accurate, precise and fairly presented"), Voltalia is providing the information in these materials as of this press release, and disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Consolidated income statement (unaudited)
Consolidated balance sheet (unaudited)
[1] At constant exchange rates
[3]See Q4 2019 press release dated January 22, 2020 [4]See press release dated August 25, 2020 [5] See H1 2019 press release dated September 25, 2019 [6]Financial Debt / (Equity + Financial Debt) [7] Confirming the ambition announced in the press release dated June 6, 2019 Regulatory filing PDF file File: PDF-VENG | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Language: | English |
| Company: | Voltalia SA |
| 84 boulevard de Sébastopol | |
| 75003 Paris | |
| France | |
| E-mail: | invest@voltalia.com |
| Internet: | www.voltalia.com |
| ISIN: | FR0011995588 |
| Euronext Ticker: | VLTSA |
| AMF Category: | Inside information / News release on accounts, results |
| EQS News ID: | 1135957 |
| End of Announcement | EQS News Service |
1135957 24-Sep-2020 CET/CEST
