Voltalia Passes the €500 million Mark

Source: www.gulfoilandgas.com 1/25/2023, Location: Europe

Revenues of €153 million in Q4 2022 (+5%) and €503 million in 2022 (+26%)
• Energy Sales: +34% in Q4 and +18% for the year. Increase in installed capacity, unfavorable base effect due to divestment at the end of 2021, lower wind and solar resources and strengthening of the Brazilian real compared to 2021
• Services: +31% in Q4 and +47% for the year. Strong growth in services to third-party customers in all business segments

2023 ambitions
• Voltalia has reached its 2023 target of 2.6 GW of capacity in operation and under construction a year early
• Confirmation of normalised1 EBITDA target of €275-300 million in 2023
• Record 1.1 GW of new long-term power sales contracts won in 2022 will contribute to growth in 2023 and beyond

Voltalia an international player in the renewable energy sector, reports fourth quarter and full year 2022 revenues.

"The fourth quarter was characterised by accelerating Energy Sales and continued strong growth in Services to third-party customers. Commercial momentum remains strong, with a record volume of long-term power sales contracts won in 2022 that will fuel growth in 2023 and beyond. In addition, we are proud to have achieved our target of 2.6 GW of capacity in operation and under construction a year early ", commented Sébastien Clerc, Voltalia’s CEO.

Revenues for the 2022 fiscal year and the fourth quarter (Q4)

- Revenues for the year 2022 amount to €502.7 million, an increase of +26% (+19% at constant exchange rates). Energy Sales and Services (after eliminations) contribute 49% and 51% of the annual revenues respectively.
- Revenues for Q4 2022 amount to €153.1 million, up +5% (-2% at constant exchange rates). Energy Sales and Services (after eliminations) contribute 49% and 51% of the quarter's revenues respectively.
- These new annual and quarterly performance increases relate both to the relevance of relying on Voltalia's integrated model combining the business of renewable electricity producer and that of service provider for third-party customers. Voltalia's integrated model, which makes it possible to operate across the entire value chain of renewable projects, continues to be. This differentiating and promising model is combined with a geographic positioning centered on countries where the growth potential of the sector is among the highest in the world.


Operational indicators
Revenues in 2022 from Energy Sales reach €245.3 million, up +18% at current exchange rates compared to 2021.
• The increase would be +30% without the exit from the scope of the Brazilian projects VSM2 and VSM4 (187 MW), in November 2021, a few months after their commissioning. This sale was the result of the integrated strategy of development, construction and maintenance for third parties.
• The increase was +6% at constant exchange rates (and +17% without the disposal of VSM2 and VSM4). The Brazilian real continued to appreciate in 2022 with an average EUR/BRL rate of 5.4 in 2022 compared with 6.4 in 2021.

In 2022, Voltalia benefited from the commissioning of a total of 442 MW, including SSM1-2 (320 MW) in Brazil, South Farm (49.9 MW) in the UK, Stavria (12 MW) in Greece and Carrière des Plaines (8.2 MW) in France, as well as the 46 MW growth of Helexia's solar rooftops in Europe (in France, Portugal and Italy). In total, the capacity of plants in operation increased by +39% from 1,129 to 1,571 MW between the end of 2021 and the end of 2022, while the capacity of plants under construction increased by +76% over the same period, from 580 to 1,022 MW.

On 31 December 2022, production reached 3.7 TWh, compared to 4.1 TWh on 31 December 2021. This decrease is explained on the one hand by the sale of the VSM2 and VSM4 wind power plants in Brazil ((which had produced 0.6 TWh in 2021), and on the other hand by lower wind and solar resources than in 2021.

The increase in revenues (+18%) in a context of lower production (-13%) reflects an increase in the average selling price per MWh in 2022 and is explained by: (i) the contractual indexation of selling prices to inflation for 83% of revenues in 2021, (ii) the replacement of plants with low prices per MWh by projects with higher tariffs, and (iii) the strengthening of the Brazilian real.

The year was also marked by a sustained commercial dynamic with a 3.6-fold increase in the volume of long-term electricity sales contracts won in 2022 compared to 2021, from 310 to 1,128 megawatts. The bulk of the volumes won are represented by solar, ground-mounted or rooftop, and corporate PPAs (long-term contracts that link the producer, a Voltalia power plant, directly to the end consumer of the electricity, a large company)8.

Q4 2022 revenues from Energy Sales reach €74.3 million, up +34% (+19% at constant exchange rates) compared to Q4 2021.

Quarterly revenues increase due to the higher average selling price per MWh compared to Q4 2021, while quarterly production, at 1.2 TWh, is almost stable compared to Q4 2021: new capacities commissioned have compensated for the exit of the VSM2 and VSM4 projects and the lower resource.

By country:
• In Brazil, revenues benefited from the production of the new SSM1-2 solar plant commissioned in the course of 2022, and from the strengthening of the Brazilian real, but no longer benefited from the production of VSM2 and VSM4 which contributed until the end of November 2021, when they were sold. Q4 2022 was also characterised by less favourable wind conditions than a year earlier;
• In France, revenue growth was mainly due to the commissioning of a new solar power plant (Carrières des Plaines) and the growth of Helexia;
• In the United Kingdom, revenues benefited from the commissioning of the South Farm solar power plant (49.9 MW) and the Hallen battery storage unit (32 MW / 32 MWh);
• In the other countries (Belgium, Portugal, Spain, Italy, Greece, Jordan and Egypt), the contribution of solar energy has been strengthened, in particular by the continued ramp-up of Helexia.

Revenues in 2022 from Services (internal and external) reach €386.5 million, up +47% (+45% at constant exchange rates) compared to 2021. Internal revenues (eliminated in consolidation) were up +77% at €129.1 million, while with third-party customers increased by +35% to 257.4 million euros. The Development, Construction and Equipment Procurement segment grew by +50% to reach €353.8 million, and the Operation & Maintenance segment by +19% to reach €32.7 million.

Q4 2022 revenues from Services (internal and external) reach €146.2 million, up +31% (+30% at constant exchange rates) compared to Q4 2021. Revenues from third-party customers decreased (-13%) while internal revenues (eliminated in consolidation) increased 3.3 times. The analysis by segment shows the following developments:

• The Development, Construction and Equipment Procurement segment posted revenues of €136.5 million, up +28% at current exchange rates (+27% at constant exchange rates). The segment's internal revenues are multiplied by x2.7, reflecting in particular the dynamics of internal demand for the construction of new power plants, while revenues for third-party customers are down -19%. External Development revenues were lower compared to Q4 2021, which had benefited from the sale of the VSM2 and VSM4 power plants. Other revenue from third-party customers increased. Indeed, Construction is performing well, particularly in Portugal and Greece, as is Equipment Procurement, which continues to be very dynamic, particularly in Italy, Portugal and the United Kingdom.
• The Operations-Maintenance segment reports revenues of €9.6 million, up +40% compared to Q4 2021 (+36 at constant exchange rates). Third party customers represent 56% of the segment's revenues.

Revenue eliminations for the year 2022 and Q4 2022 amount to respectively €129.1 million (+77% at current exchange rates and +74% at constant exchange rates) and €67.3 million (x3.3 at current and constant exchange rates), reflecting the strong increase in internal services for the benefit of the plants under construction and operation owned by Voltalia.

Renault Group signs a 350 MW solar electricity supply contract to support its energy transition9
The 15-year contract is the largest corporate renewable electricity supply contract (Corporate PPA) ever signed in France by a company. It will cover a production of approximately 500 GWh per year.

Winning a new 123 MW solar project in Uzbekistan10
In July 2022, Voltalia participated in a tender, sponsored by the World Bank through the IFC's Scaling Solar programme, for a new solar power plant in Uch-Uchak in the Khorezm region of Uzbekistan. Voltalia has been informed by the Uzbek Government that it has won the bid for this new 123 MW plant.

Signature of an innovative co-development partnership agreement with Uzbekistan11
The Uzbek state and Voltalia signed, in the presence of the EBRD (European Bank for Reconstruction and Development), a partnership agreement for the co-development of a renewable and controllable power complex, the first of its kind in Central Asia, including solar, wind and battery storage capacities with a total capacity of between 400 and 500 MW.

Signature of a Memorandum of Understanding with the Egyptian state to develop with TAQA Arabia a combined renewable energy and green hydrogen production complex12

The initial project will include a new green hydrogen production facility with a capacity of 15,000 tonnes per year, on a greenfield site near the port of Ain Sokhna in the Suez Canal Economic Zone, using a 100 MW electrolyser powered by 283 MW of renewable energy. The project will be expanded to 150,000 tonnes per year of green hydrogen, with a total electrolyser capacity of 1 GW, powered by 2.7 GW of solar and wind energy. The land for the complex will be provided by the Egyptian state.

South Farm solar power plant in the UK goes into operation13
The 49.9 MW solar plant will provide clean electricity to the City of London Corporation for 15 years under a Power Purchase Agreement (PPA) signed in late 2020. The City of London Corporation has signed a Corporate PPA with Voltalia, under which the Square Mile's governing body has agreed to purchase all the electricity generated by the new solar power plant at South Farm, located near the village of Spetisbury in Dorset.

Construction of a solar power plant launched in South Africa14
Voltalia has launched the first construction work on a 148 MW solar power plant, just two months after signing a 20-year corporate PPA with Rio Tinto Group. It will be the largest renewable energy plant in South Africa dedicated to the energy needs of a corporate client.

Start of construction of a solar power plant in France15
Voltalia has started construction of the Logelbach project, a new 12.1 MW solar power plant in the Grand-Est region, which is scheduled to come on stream in the second half of 2023.

Helexia, a subsidiary of Voltalia, supports Auchan Retail in the installation of photovoltaic roofs in Hungary16
The total capacity of the roofs will be 25.1 MW. Helexia is in charge of the development, construction, financing and commissioning of solar power plants on the roofs.

EthiFinance awards Voltalia a bronze medal for its extra-financial performance17
Voltalia has been included in the Gaïa index for the fifth consecutive year. This stock market index developed by EthiFinance distinguishes the best performing French stocks in terms of Corporate Social Responsibility (CSR). Voltalia is in second place in the ranking of companies in its sector. Voltalia was also awarded a bronze medal for its ESG performance.

Sustainalytics improves Voltalia’s extra-financial performance18
Sustainalytics (Morningstar Group), one of the world's leading ESG rating agencies, has, for the fourth consecutive year, ranked Voltalia among the top 10 companies in the global renewable energy sector. The company is ranked 7th out of 95 companies in its sector and 16th in the utilities sector out of 704 groups.

Voltalia reaches its target of 2.6 GW of installed capacity and under construction, initially planned for 2023, a year early
Voltalia reiterates 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, was reached at the end of 202219, one year ahead of schedule.
Voltalia confirms its EBITDA target for 2023
Voltalia reiterates its normalised EBITDA20 target of €275-300 million for 2023.

Last October, Voltalia defined a new growth plan for 2027, including the following objectives:
• Own operating and construction capacity: over 5 GW by the end of 2027;
• Capacity operated on behalf of third parties: over 8 GW by the end of 2027;
• Normalised EBITDA21: around €475 million in 2027;
• CO2-equivalent avoided: more than 4 million tonnes in 2027.

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