Strong increase in half-year results 2022
Revenues +42%
EBITDA +39% and normalised1 EBITDA +40%
Seasonal net loss divided by 5
Ambitions 2023 capacity achieved by 2022
Voltalia will reach its 2023 target of 2.6 gigawatts of capacity in operation and under construction by the end of 2022, one year ahead of schedule
Confirmation of normalised1 EBITDA target of 275-300 million in 2023
Dynamic development with a growing pipeline
Portfolio of projects under development: +27% since June 2021, to 13.6 gigawatts
Since January, 464 megawatts of new long-term electricity sales contracts have been won, supported in particular by the activity of Helexia, whose contract portfolio has increased by a factor of x8.2 over the past 36 months
"At a time when the energy crisis is hitting Europe and the climate crisis is having repercussions all over the world, Voltalia is providing solutions: accelerating energy autonomy by supplying electricity to distributors or directly to companies through the development of renewable power plants owned by Voltalia and its third-party customers; and improving the energy efficiency of companies by helping them to reduce their electricity consumption through the services provided by Helexia. The success of our solutions allows us to bring forward by one year our capacity target of 2.6 gigawatts, initially planned for the end of 2023, which will be reached by 2022. With our half-year results and a pipeline of future projects growing strongly, we have solid fundamentals to pursue our mission by acting daily to build a more sustainable world", commented Sιbastien Clerc, Voltalias CEO.
Voltalia, an international player in renewable energies, announces today its consolidated half-year results for the period ending 30 June 2022.
The limited review of the half-yearly accounts has been finalised by the statutory auditors. The half-year accounts were reviewed by Voltalia's Audit Committee and approved by the Board of Directors at its meeting on September 27, 2022.
Strong improvement in revenues, EBITDA and net results
Revenues for the first half of 2022 amount to 214.3 million, up +42% compared to the first half of 2021.
Normalised EBITDA, calculated on the basis of an average annual EUR/BRL exchange rate of 6.3 and a wind, solar and hydraulic resource corresponding to the long-term average, stands at 51.0 million, up +40% compared to the first half of 2021.
Consolidated EBITDA is 47.4 million, up +39%.
The seasonal net loss (Group share) is -4.6 million, 5 times lower than in the first half of 2021.
Since the IPO in 2014, revenues and EBITDA have grown by an average of +48% and +49% per year respectively.
BUSINESS REVIEW
Energy Sales: Full effect of newly commissioned plants
Production and revenues
First-half 2022 revenues from Energy Sales amount to 96.1 million, up +7%, despite a decrease in production from 1.6 to 1.3 TWh. This decrease is mainly due to the sale in November 2021 of the VSM2 and VSM4 power plants in Brazil (which had started producing in the first half of 2021) and to a lower average level of resources (wind, sunshine and hydraulic flow) in the first half of 2022, whereas the resource in the first half of 2021 was at its long-term average.
These factors of decrease in volume are partially offset by factors of increase:
production benefits from the full effect of the plants that started contributing during 2021 (mainly VSM3 in Brazil and Laspeyres, Cabanon and Cacao in France) and the first effects of the plants commissioned in the first half of 2022 (mainly SSM1-2 in Brazil, Stavria in Greece and Carriθre des Plaines in France); and
production has benefited from the very strong momentum of Helexia.
The increase in revenues (+7%) in a context of lower production (-19%) reflects a strong increase in the average selling price per MWh (+32%) and is explained by a combination of several factors:
the contractual indexation of sales prices on indices equal or close to the consumer price index (inflation) at 83% of the revenues contractually indexed on inflation in 2021;
the replacement of projects with low prices per MWh (VSM2 and VSM4, which benefit from some of the best wind levels in the world) with more tariffed projects, e.g. Helexia's solar roofs;
the strengthening of the Brazilian real: with an average EUR/BRL rate of 5.55 in the first half of 2022, compared to 6.49 in the first half of 2021, which contributes to almost a third of the increase in the average selling price per megawatt hour.
o EBITDA
Energy Sales generate EBITDA of 53.6 million in the first half of 2022, up +8% (stable at constant exchange rates), representing an EBITDA margin of 56.0%, i.e. +1 point compared to the first half of 2021.
Detail by country:
in Brazil, 51% of Energy Sales, EBITDA was negatively impacted by lower production due to the divestment in November 2021 of the VSM2 and VSM4 plants (which had started production in H1 2021) and wind conditions that were less favourable than a year earlier and well below the long-term resource average. This loss of volume was almost entirely offset by a favourable exchange rate effect (strengthening of the Brazilian currency) and by contractual clauses indexing sales prices to inflation;
in France, 26% of Energy Sales, EBITDA benefits from the production of the solar and biomass plants commissioned in 2021 (Laspeyres, Cabanon, Cacao and Helexia portfolio) despite a slight decrease in production due to lower wind;
in the other countries (UK, Belgium, Portugal, Spain, Italy, Greece, Egypt and Jordan), 23% of Energy Sales, EBITDA is significantly higher, benefiting from the commissioning of the new Stavria solar plant in Greece in March, and the strong production of Helexia in Spain, Belgium and Portugal.
Services: strong revenue and EBITDA growth
Financial key figures
In the first-half of 2022 revenues from Services (internal and external) amount to 166.9 million, up +74% (+71% at constant exchange rates), benefiting in particular from the strong growth in revenues from the Development, Construction and Equipment Procurement segments. EBITDA moves into positive territory despite the weight of development costs linked to the prospecting of new projects, which remains significant in order to contribute to the Group's future growth: the pipeline thus increased from 10.7 GW at the end of June 2021 to 13.6 GW at the end of June 2022, an increase of +27%.
Development, Construction and Equipment Procurement
Revenues from the Development, Construction and Equipment Procurement segments amount to 152.0 million in the first half of 2022, up +90% (+88% at constant exchange rates) compared to the first half of 2021. EBITDA from this segment increases by 12.0 million in first half of 2022 to 6.8 million. Over the period, Development benefits from the sale of projects to third party customers, including disposals that were shifted from 2021 to 2022 representing an EBITDA of approximately 10 million. In addition, Construction and Equipment Procurement benefit from the strong commercial momentum with third party customers. Voltalia has managed to control its costs, in a general context of inflation in material costs, thanks to the strength of its integrated model, which enables it to pool its equipment purchases and to finely control its expenses.
Operations & Maintenance
Revenues of the Operations & Maintenance segment reach 15 million, up +17% (+12% at constant exchange rates), benefiting from contracts in Europe and Latin America. The segment posts an EBITDA of 0.4 million (x4), confirming the positive profitability achieved in 2021.
OTHER ITEMS OF THE INCOME STATEMENT
EBITDA before eliminations and corporate items increases by +37% to 60.7 million. Eliminations are up, reflecting the growth in internal activity. Corporate items are also up, but at a much lower rate than overall activity. Consolidated EBITDA is 47.4 million, up +39% compared to 2021. Consolidated EBITDA amount to 47.4 million, up +39% compared to 2021.
Depreciation, amortisation and provisions amount to 31.8 million, down -7%. Depreciation is up, due to the plants commissioned in the first half of 2022 and the full-year effect of the plants commissioned in 2021, while provisions are down after significant allocations in the first half of 2021.
At 13.9 million, net financial expenses are down -23%. Interest earned on deposits in Brazil (notably the reserve accounts required for project financing), which rose sharply with the increase in short-term rates, more than offset the financial charges related to long-term project financing, the outstanding amounts of which are rising in line with investments on Voltalia's three continents.
After taking into account minority interests and taxes, the seasonal net loss (Group share) is divided by almost 5.
SIMPLIFIED CONSOLIDATED BALANCE SHEET
Voltalia's balance sheet at 30 June 2022 is 2.6 billion, up 23% at current exchange rates and 19% at constant exchange rates, with the difference coming from the appreciation of the Brazilian real with a EUR/BRL rate of 6.32 at the end of December 2021 compared to 5.44 at the end of June 2022.
The increase in the Group's assets is mainly due to the increase in the portfolio of power plants in operation and under construction, with fixed assets up by +22% to 1,846 million.
The Group's cash position at the end of June 2022 is 331 million, up +14%.
This level should be compared to total financial debt of 1,398 million at the end of June 2022, up +33%, reflecting a gearing6 that remains low, at 55%.
Over the period, operational activity (excluding investments) generated cash flow of 19 million.
PROJECT PORTFOLIO UNDER DEVELOPMENT
The portfolio of projects under development, to be retained or sold with construction and maintenance services, is growing strongly to 13.6 GW at 30 June 2022, i.e. +27% compared to 30 June 2021.
With the strategy of geographical diversification promoted by the Group, this portfolio is currently distributed as follows: 42% in Latin America, 39% in Europe and 19% in Africa. In terms of technology, solar energy is in the majority, at 66%, followed by wind energy at 30% and other technologies at 4%.
RECENT DEVELOPMENTS SINCE JULY 1st 2022
Construction of a 140 MW solar project in Albania7
Voltalia is launching the construction of the Karavasta solar power plant, which was awarded a 30-year concession in 2020. Under the terms of the tender, Karavasta will sell 50% of the electricity through a 15-year sales contract to the Albanian public operator, while the remainder of the production will be sold through long-term contracts to private operators. The plant is expected to be commissioned in the second half of 2023.
Construction of two UK solar projects of 90 MW in total8
After winning the recent CfD AR4 auction in the UK for two solar projects, Clifton Solar and Higher Stockbridge Solar, of 45 MW each, Voltalia has launched their construction, with respective commissioning scheduled for the last quarter of 2023 and the first quarter of 2024.
Construction of 50.6 MW solar projects in Portugal9
Voltalia has launched the construction of five projects for a total of 50.6 MW, launching Garrido, its new Portuguese complex of small solar power plants. The electricity will be sold through very long-term sales contracts signed with companies that will consume the electricity (corporate PPA).
Construction of a 23.6 MW wind farm in France10
The Sud Vannier wind farm is located in the Haute-Marne region, approximately 25 kilometres south-east of the town of Langres and 65 kilometres north-east of the town of Dijon. It has a 20-year sales contract with a guaranteed tariff. Commissioning is planned for the first half of 2023.
Signature of a CPPA with Leroy Merlin for the construction of a 30 MW plant11
Leroy Merlin and Voltalia have signed a CPPA for the production of an additional solar power plant specifically built for Leroy Merlin. This agreement will enable Leroy Merlin to supply approximately 15% of its electricity consumption with renewable energy. Commissioning is scheduled for 2025.
New 2.9 MW hydroelectric project in French Guyana12
The French Energy Regulatory Commission (CRE) has authorised Voltalia to sign a contract with EDF SEI for the sale of the electricity that will be generated by a run-of-river hydroelectric power plant located on the Inini River at Saut-Sonnelle in the commune of Maripa-Soula, French Guiana. The contract covers a period of at least 30 years from the commissioning of the plant, scheduled for 2026.
Helexia helps European companies weather the energy crisis, with a contracted solar portfolio that has grown from 52 to 427 MW in 36 months13
In a context of energy scarcity and cost inflation, the offer proposed by Helexia responds perfectly to the major challenges facing companies today: reduction of the carbon footprint, reduction of energy bills and access to energy autonomy. To achieve this, Helexia offers companies a complete range of services combining energy efficiency and solar energy production on the client's sites, both on the roof and on their car parks, in order to transform their constraints into opportunities.
Launch of an additional issue of green convertible bonds maturing in 2025 for 50 million14
Voltalia SA has launched an additional issue of green convertible bonds (OCEANEs Vertes) maturing in 2025 for a nominal amount of approximately 50 million fully assimilated to the OCEANEs Vertes maturing in 2025 issued in January 2021.
Voltalia has successfully completed its second employee share plan15
For this second edition, seven countries, i.e. 88% of employees, were eligible: France, Portugal, Brazil, Greece, Italy, Spain and the United Kingdom. In total, 72% of eligible employees decided to participate, compared to 69.5% in the first plan.
2023 AMBITIONS
Voltalia is bringing forward by one year its target of 2.6 GW of installed capacity and under construction, initially planned for 2023
Voltalia announced today that its target of 2.6 GW of installed capacity in operation and under construction, which it had planned to achieve by the end of 2023, will be reached by the end of 2022, one year ahead of schedule. To date, Voltalia has 2.4 GW of installed capacity in operation and under construction, with a further 200 MW to be launched by the end of the year.
Voltalia confirms its EBITDA target for 2023
Voltalia reiterates its normalised EBITDA16 target of 275-300 million for 2023.
NEW POST-2023 AMBITIONS TO BE ANNOUNCED SOON
Voltalia will present new post-2023 ambitions at a meeting following the third quarter revenues announcement, of which the exact details will be communicated at a later date.
