VOLTALIA SA PRESS RELEASE
23 September 2021
Half-Year Results 2021
After a very strong H1,
Voltalia confirms its short and medium-term objectives
Very strong growth in H1 2021
- Growth in revenue (+72%) and EBITDA (+44%)
- Capacity installed or under construction at 1.9 GW to date (+55% vs. June 2020)
2021 Targets and 2023 Ambitions reiterated
- 2021 targets of normalised EBITDA1 of ~€170 million confirmed : strong EBITDA growth expected in H2 due to seasonality, new power plant commissioning and strong Services activity
- 2023 ambitions2 reaffirmed for both capacity in operation and under construction and for normalised EBITDA, while continuing geographic diversification
Solid financial structure and strong development momentum
- Cash position at €329 million, strengthened by the issuance of green bonds in January
- Further increase in the portfolio of projects under development: +10% since end 2020 and +26% since June 2020, with a portfolio of 10.7 GW
Voltalia (Euronext Paris, ISIN code: FR0011995588), an international player in renewable energies, announces today its revenues for the first half of 2021.
The limited review of the half-yearly accounts is being finalized by the statutory auditors. The half-year accounts were reviewed by Voltalia's Audit Committee and approved by the Board of Directors which met on September 22, 2021.
Voltalia will comment on its half-year results for 2021 and its short and medium term outlook during a live audio webcast starting at 8:30am Paris time on Thursday 23 September 2021. Full login details are available on our website https://www.voltalia.com/fr/investisseurs
"The continued strong growth in our revenues and EBITDA is driven by the sustained momentum of all our activities. While our installed capacity is growing month on month, our third party services business more than doubled over the period despite the absence of project development sales, illustrating the expertise of our teams. On the strength of a good H1, and anticipating an even better H2 given the seasonality of our business, the commissioning of recent months in particular the power plants in Brazil (VSM2, VSM3 and VSM4) and in France (Sarry and Cacao) and the outlook for Services3activity, we confirm our EBITDA target for 2021. Finally, we reaffirm our 2023 capacity and EBITDA ambitions," commented Sébastien Clerc, Voltalia's CEO.
1 "Normalised" means calculated with an average EUR/BRL exchange rate of 6.3 and a wind, solar and hydro resource at its long-term average.
2Ambitions 2023 of 2.6 gigawatts of capacity in operation and under construction, already fully backed by power sales contracts won in 2020, for a total normalised EBITDA of 275 to 300 million euros.
3 VSM2 and VSM4 project sales press release, issued in May 2021 , which sale will be completed in November 2021
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KEY FIGURES: VERY STRONG BUSINESS GROWTH AND SUSTAINED INCREASE OF EBITDA
In € million | H1 2021 | H1 2020 | Change at | Change at constant | ||||||
current rates | rates* | |||||||||
Revenues | 152.1 | 88.4 | +72% | +85% | ||||||
EBITDA | 34.1 | 23.8 | +44% | +69% | ||||||
EBITDA margin | 22.5% | 26.9% | -4,4pts | -2.2 pts | ||||||
Net income, Group share | (21.4) | (15.8) | +36% | +31% | ||||||
* *The average EUR/BRL exchange rate at which revenues for the first half of 2021 have been determined is 6.49. vs. 5,4 au 30 juin 2020.
H1 revenues amount to €152.1 million euros, up +72% (+85% at constant exchange rates). Over the period, the business benefited from the combined effect of accelerated commissioning of new power plants, increased power generation driven by improved resource levels and strong service sales.
EBITDA is up 44% to €34.1 million (+69% at constant exchange rates), reflecting growth in each of the Group's businesses. The EBITDA margin fell by 4.4 percentage points to 22.5%, mainly due to the increase in Services for third-party customers, a low-capital-intensity activity which therefore generates a lower margin on revenues than electricity production. Furthermore, within Services, while H1 2020 had recognised significant sales of projects to be built (94 MW for a revenue of €7.3 million), the project sales signed in H1 2021 (187 MW, announced in May) will only be completed in H2 .
Normalised EBITDA, calculated with a EUR/BRL exchange rate of 6.3 and wind, solar and hydro resources in line with the long-term average, was EUR 36.3 million.
Due to the seasonal nature of the resources (wind, solar, hydro) of the power plants owned by Voltalia, the H1 net result (group share) is negative as in the past. The net loss is up 36% (31% at constant exchange rate) reflecting the growth of the activity.
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REVIEW OF ACTIVITIES
Energy sales: record level of activity combined with solid profitability
Key financial figures | ||||||||||
In € million | H1 2021 | H1 2020 | Change at current | Change at current | ||||||
Before elimination of internally provided services | rates | rates | ||||||||
Revenues | 92.9 | 62.1 | +50% | +68% | ||||||
EBITDA | 44.8 | 32.9 | +36% | +55% | ||||||
EBITDA margin | 48% | 53% | -4.7 pts | -4.1 pts | ||||||
Operational indicators
H1 2021 | H1 2020 | Change. | |||||||
Production (in GWh) | 1 622 | 915 | +77% | ||||||
Installed capacity (in MW) | 1 2734 | 820 | +55% | ||||||
Installed or under construction capacity (in MW) | 1 851 | 1232 | +50% | ||||||
Wind load factor in Brazil | 42% | 31% | +11 pts | ||||||
Wind load factor in France | 25% | 31% | -6 pts | ||||||
Solar load factor in France | 17% | 18% | -1 pt |
- Strong revenue growth due to increased installed capacity and improved resource conditions
Revenues from energy sales reached a record level of €92.9 million, up +50% at current exchange rates. At constant exchange rates, growth was +68%, reflecting the fall in the Brazilian real in 2020, mainly between March and August 2020, at the start of the global health and economic crisis. The average EUR/BRL rate thus rose from 5.4 in H1 2020 to 6.49 in H1 2021.
Over the period, Voltalia benefited from :
- a further increase in its installed capacity in operation: at the end of June 2021, it amounted to 1,273 MW, compared to 820 MW at the end of June 2020, an increase of +55%, mainly from new capacities in Brazil (VSM2, VSM3 and VSM4), France (including Guyana) and Jordan;
- a better resource level compared to the same period in 2020 with wind levels in Brazil quite close to the long-term average (load factor of 42% in H1 2021), whereas they were well below this average in H1 2020.
- Sustained EBITDA growth
The Energy Sales business generated EBITDA for the period €44.8 million, up +36% compared to H1 2020 (+55% at constant exchange rates) representing an EBITDA margin of 48% (-4.7 points). The lower EBITDA margin rate is mainly due to the recently commissioned plants whose gradual ramp-up did not allow them to reach their full potential over the whole of H1 2021, as well as by the ramp- up costs of Helexia, in particular with the establishment of the operational structures in Brazil required to build the power plants underlying the PPAs won from Telefonica.
4The 8 MW increase compared to the Q2 2021 revenue press release of July 21, 2021 is explained by the underestimation of the solar roofs of the Helexia subsidiary.
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Detail by country :
- In Brazil, 54% of energy sales (same as in H1 2020), EBITDA benefits from new power stations. In addition, the wind resource was much better than in the same period in 2020, returning to a level close to the long-term average;
- In France, 25% of energy sales (vs. 29% in H1 2020), EBITDA benefited from new wind and solar plants (including Helexia's solar roofs) and the good performance of other existing stations, despite a lower wind resource than in H1 2020, that is returning to the long-term average;
- In other countries (UK, Belgium, Portugal, Spain, Italy, Greece, Egypt and Jordan), 22% of energy sales (vs. 17% in H1 2020), EBITDA is significantly higher, mainly due to the good performance of the Ra Solar plant in Egypt and at the integration of Jordanian stations.
Services: sales momentum and EBITDA improve
In € million
Before elimination of internally provided services
Revenues
Of which internal revenues
Of which external revenues
EBITDA
H1 2021 | H1 2020 | Change at | Change at current | ||||
current rates | rates | ||||||
95.0 | 49.9 | +90% | +93% | ||||
35.8 | 23.4 | +53% | +57% | ||||
59.1 | 26.3 | +124% | +125% | ||||
(0.5) | (1.9) | +73% | +76% | ||||
Revenue from Services (internal and external) amounted to 95.0 million, up +90% (+93% at constant exchange rates). This high level reflects both the strong momentum of sales of services to third party clients, which increased by +124% to €59.1 million, and the increase in internal revenues (eliminated on consolidation), which rose by +53% to €35.8 million over the period, reflecting the acceleration of construction starts in the first six months of the year.
EBITDA increased slightly, but remained negative due to the weight of new project development (reflected in a pipeline that increased from 8.5 GW in June 2020 to 10.7 GW in June 2021) and the absence of recognition of external Development sales, unlike in H1 2020.
- Development, Equipment Procurement and Construction
The Development, Equipment Procurement and Construction segment posted revenues of €82.1 million, up 110% (+112% at constant exchange rates).
In this segment, the Group recorded an increase in Construction, illustrating in particular the dynamic construction activity for third party clients during the period in France, Portugal and Greece.
However, H1 2021 does not recognise any external sales revenue from the Development activity. Indeed, as announced5, the sale of the VSM2 and VSM4 projects (187 MW in total) will have an impact on the financial statements in H2 2021 7.4 million from the sale of 94 MW of ready-to-build sites.
- Operations & Maintenance
The Operations & Maintenance segment recorded revenues of €12.8 million, up +19% (+24% at constant exchange rates). The segment achieved a slightly positive EBITDA in the first half of the year, mainly driven by internal business growth.
5 See press release May 18, 2021
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OTHER INCOME STATEMENT ITEMS
In € million | H1 2021 | H1 2020 | Change at current | Change at | |||||
rates | current rates | ||||||||
EBITDA before eliminations and corporate items | 44.3 | 31.0 | +43% | +63% | |||||
Eliminations and corporate items | (10.1) | (7.2) | +41% | +41% | |||||
EBITDA | 34.1 | 23.8 | +44% | +69% | |||||
Depreciation, amortization and provisions | (34.3) | (22.6) | +52% | +66% | |||||
Operating profit (EBIT) | (0.2) | 1.2 | -116% | +194% | |||||
Financial result | (18.1) | (14.9) | +21% | +36% | |||||
Taxes and results of companies accounted for | (4.1) | (4.3) | -6% | +7% | |||||
using the equity method | |||||||||
Minority interests | 0.9 | 2.3 | -62% | -59% | |||||
Net profit (Group share) | (21.4) | (15.8) | +36% | +31% |
Eliminations increased due to an increase in internal activity linked to the growth in business. After eliminations, consolidated EBITDA amounted to €34.1 million, up 44% on H1 2020.
Depreciation and provisions were up 68% at €34.3 million, reflecting:
- The depreciation of the plants commissioned in H1 2021 and the full year effect of the plants commissioned in 2020
- The provisions related to our increased construction activity higher than in 2020, which had instead seen provisions write-back.
At €18.1 million, financial expenses are up by +21%, including in particular the costs related to the January issue of green convertible bonds (OCEANE). The increase was limited, however, by the combined effect of the fall in the Brazilian currency and interest rates.
At €4.1 million, taxes were slightly down (-6%).
The profitability of power plants owned jointly with minority partners increased but remained negative.
In H1 2021, Voltalia recorded a net loss (Group share) of €21.4 million, up 36%, reflecting the increase in activity.
SIMPLIFIED CONSOLIDATED BALANCE SHEET PASSES THE €2 BILLION LEVEL
Voltalia's balance sheet at the end of June 2021 exceeded €2 billion for the first time, up 13% at constant exchange rates and 16.4% after taking into account the devaluation of the Brazilian real, which closed the first half of 2021 at a rate of 6.49 BRL/EUR compared to 6.37 BRL/EUR at 31 December 2020.
In € million | 30/06/2021 | 31/12/2020 | ||||||
Goodwill | 77.8 | 80.2 | ||||||
Tangible & intangible assets | 1 452.3 | 1 273.5 | ||||||
Cash and cash equivalents | 329.4 | 220.1 | ||||||
Others assets | 210.0 | 203.6 | ||||||
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Voltalia SA published this content on 23 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 September 2021 15:41:05 UTC.
