Voltalia SA
Voltalia SA - Q2 2019 revenues: services-led growth, +16% at constant
exchange rates
17-Jul-2019 / 17:59 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
· Services doubling again: fast-growing contribution of Construction, new
Development sales
· Energy sales slowdown due to normalized pricing in Brazil
· 2020 guidance confirmed, 2023 capacity roadmap financed through
successful capital increase
"The impressive growth of our Services business, which is doubling compared
with last year, more than compensates the expected normalized pricing levels
in Energy Sales in Brazil. This proves once again the value of being both a
power producer and a service provider. The dense news flow of the past few
months illustrates our capacity to handle large volumes of construction
sites and to sell projects at different stages of development, while
securing new projects. These are key success factors to deliver on our new
set of ambitions by 2023, which we were thrilled to share early June: after
doubling capacity by 2020 to reach 1 GW, we are now looking to reach 2.6 GW
in operation or construction by 2023", declares Sébastien Clerc, CEO of
Voltalia.
Voltalia (Euronext Paris, ISIN code: FR0011995588), an international player
in renewable energies, announces today its revenues of 2019 second quarter
(Q2 2019).
Q2 2019 and HY 2019 revenues
In EUR million Q2 Q2 Change Change H1 H1 Change Change
2018[1 at 2019 2018 at
] consta consta
nt nt
2019 curren curren
cy[2] cy2
Energy sales 24.1 28.9 -17% -15% 45.5 55.7 -18% -15%
Services 50.2 20.1 x2.5 x2.5 85.8 39.1 x2.2 x2.2
Total revenues 74.3 49.1 +51% +52% 131.4 94.8 +39% +40%
(internal and
external)
Eliminations[3] (32.3) (12.3) x2.6 x2.6 (62.5) (20.1) x3.1 x3.1
Consolidated 41.9 36.7 +14% +16% 68.8 74.7 -8% -6%
revenues
Other key data
Production 410.0 404.4 +1% +1% 756.6 804.4 -6% -6%
(in GWh)
Installed 529 519 +2% +2%
capacity
(in MW,
end of
period)
Business review
Energy sales
Q2 2019 revenues total EUR24.1 million, down by 15% at constant exchange
rates compared with Q2 2018, which had benefited from the positive but
non-recurring impact of the contract suspension strategy in Brazil:
· In Brazil, production was back to historical levels in Q2, following a
Q1 which recorded lower than average wind speeds. As expected, prices are
back to the regular long-term contract prices indexed to inflation,
resulting in a decrease of power sales revenues in Brazil. In 2018,
Voltalia had demonstrated the benefit of its non-subsidized approach by
seizing opportunities to suspend contracts on part of its Brazilian wind
parks. This strategy was the driver behind a positive non-recurring
pricing effect in Brazil of around EUR25 million over the year.
· In the other countries, production and revenues increased overall thanks
to the contribution of new power plants in France as well as favourable
weather conditions throughout the quarter.
Services
Q2 2019 revenues reach EUR50.2 million, doubling against the same period of
the prior year for the 4th quarter in a row:
· Development, Construction & Procurement revenues grew by a factor of
2.8x, benefiting from (i) fast-growing contribution of Construction in
line with intense activity for Voltalia's own plants (472 MW under
construction) and (ii) revenues from Development sales in France and
Brazil as well as from the sale of 60% of the Coco-Banane solar plant in
French Guiana (4.3 MW), which will be deconsolidated going forward.
· Operation & Maintenance revenues grew by around 40%, including
non-recurrent revenues in French Guiana related to the repowering of the
Coco-Banane plant. The portfolio of assets under O&M remained broadly
stable at c. 1 GW.
Strong activity of Services for the Group's own assets translates into
higher eliminations, with 64% of the revenues of the Service business
realised internally.
Recent developments
Early June Voltalia gathered the financial community for a capital market
presentation[4] and announced that, after securing 1 GW by 2020, Voltalia is
targeting further expansion to reach more than 2.6 GW capacity in operation
or construction by end of 2023.
In Q2, good progress was made for the construction of projects due before
end 2020, with construction works starting for the following projects:
Country Region / Project MW Energy Contract Expected
City duration commissio
ning
France Sud, Talagard 5 Solar 20 years H2 2019
Provence-A
lpes-Côte
d'Azur
France Sud, Jonquières 4 Solar 20 years H2 2020
Provence-A
lpes-Côte
d'Azur
France French Mana 10 Storage 10 years H1 2020
Guiana Stockage
France Nouvelle Vergné 16 Wind 15 years H2 2020
Aquitaine
France Nouvelle Coivert 11 Wind 15 years H2 2020
Aquitaine
Kenya Nandi Kopere 50 Solar 20 years H2 2020
County /
Songhor
Total 96
Beyond 2020, growth will mainly come from successfully building new
renewable energy plants coming from Voltalia's vast pipeline of projects of
6.2 GW as of end 2018. Within this pipeline, 0.6 GW have already been
secured, including the following projects which were already announced
during Q2:
Country Region / Project MW Energy Contract Expected
Cluster duration commission
ing
France TBA Boulanger[5] 5 Solar 25 years 2022
corporate PPA
France Occitanie SNCF[6] 143 Solar 25 years 2022 -
and corporate PPA 2023
Sud,
Provence-A
lpes-Côte
d'Azur
Brazil Rio Grande VSM3[7] 63 Wind 10 years H2 2022
do Norte / corporate PPA
Serra
Branca
Brazil Rio Grande VSM37 auction 7 Wind 20 years H2 2022
do Norte /
Serra
Branca
Total 218
Exclusive negotiations with Helexia
In May 2019, Voltalia entered into exclusive negotiations for the
acquisition of Helexia[8] to accelerate its deployment in solar energy and
broaden the direct offering to corporate clients. With Helexia, Voltalia
would become a reference partner for corporate clients, capable of offering
one-stop-shop solutions encompassing corporate PPAs, large photovoltaic
rooftops, energy efficiency and energy management.
With over 222 photovoltaic rooftop assets in 4 countries (France, Belgium,
Italy and Portugal), Helexia owns 51.4 MW of installed capacity and 7.5 MW
under construction. Helexia enjoys an average electricity price of
EUR211/MWh and, as of 31 December 2018, a residual life for its electricity
sale contracts of 15.8 years.
2019 trends
For Energy sales, Voltalia expects the usual seasonality in production to
translate into higher production in H2 compared with H1. In the absence of
contract suspensions in 2019 in Brazil, prices will remain within the
regular long-term power sales framework of set tariff fully indexed to
inflation. The contribution of new plants in France and Egypt is expected to
positively impact volumes, mostly in Q4.
In Services, work with third-party clients is currently limited, as most
teams are mobilized on Voltalia's own plants and delivering on the 1 GW
objective. Business opportunities with external clients are numerous and
third-party projects in Kenya, Burundi, Italy, Albania and Greece are now
being launched.
Mid-and long-term objectives confirmed and financed
2020 2023
Capacity 1 GW in operation >2.6 GW in operation or
construction
EBITDA EUR160-EUR180 million[9] EUR275-EUR300 million
To finance its post-2020 growth, Voltalia raised EUR376 million of equity
during the successful rights issue closed on July 2019.
Next on the agenda: H1 2019 results on September 25, 2019
About Voltalia (www.voltalia.com [1])
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 is also a service provider and supports its investor clients in
renewable energy projects during all phases, from design to operation and
maintenance.
Voltalia has generating capacity in operation and under construction of more
than 1 GW and a portfolio of projects under development representing total
capacity of 6.2 GW, of which 0.6 GW is secured.
The Group has 591 employees and is present in 18 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 &
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July 17, 2019 11:59 ET (15:59 GMT)
