DJ Voltalia SA: H1 2019 results are lower: improved performance of Services partly offsets lower Energy sales, as previously announced
Voltalia SA
Voltalia SA: H1 2019 results are lower: improved performance of Services
partly offsets lower Energy sales, as previously announced
25-Sep-2019 / 23:42 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
H1 2019 results are lower: improved performance of Services partly offsets
lower Energy sales, as previously announced
· Outlook
· Improvement expected in H2 2019: seasonality of electricity production
and sales of Services to third-party already secured
· 2020 capacity and EBITDA targets confirmed
· 2023 roadmap well underway and financed thanks to the success of the
capital increase
· Voltalia acquires Helexia and becomes a one-stop-shop to reduce the
energy bill of corporate clients
· A major development opportunity in a still young market
· Numerous synergies and acceleration of the international development
of Helexia
Voltalia (Euronext Paris ISIN code: FR0011995588), international player in
renewable energies, announces today its H1 2019 results.
This press release presents consolidated results, prepared in accordance
with IFRS standards, which were subject to a limited review by the statutory
auditors, then reviewed by the Audit Committee of Voltalia and approved by
the Board of Directors.
"In the first half of the year, the growth in the Services business allowed
us to absorb part of the previously announced decline in Energy Sales.
Combined with a seasonal improvement of wind conditions in Brazil, the sales
of Services to third-party clients should support a strong improvement of
the performance in the second half of the year. In 2019, we are hitting
important milestones for our future development. We have crossed the 1 GW of
capacity in operation and construction mark, enabling us to confirm our
objectives for 2020. Furthermore, we are accelerating in high-potential
markets, such as the market for corporate clients, with the acquisition of
Helexia, finalized on this day." comments Sébastien Clerc, CEO of Voltalia.
Key figures
Change
In EUR millions H1 2019 H1 2018 At actual rates At constant
rates
Revenue 56.9 74.7 -24% -22%
EBITDA 13.9 21.5 -35% -30%
EBITDA margin 24% 29% -4 pts -3 pts
Net profit (8.7) (5.9) n/a n/a
(loss) (Group
share)
Business review
Energy sales: slowdown associated with normalisation of pricing in Brazil
Change
In EUR H1 2019 H1 2018 At actual At constant
millions rates
rates
Before
eliminations
of services
provided
internally
Revenue 45.5 55.7 -18% -15%
EBITDA 27.4 32.5 -16% -13%
EBITDA margin 60% 58% +2pts +2pts
Production (in 757 804 -6% -6%
GWh)
Installed 534 519 +3% +3%
capacity (in
MW, end of
period)
At constant exchange rates, revenues for the first half of 2019 were down
15% on 2018 with a 13% decline in EBITDA at constant exchange rates.
· In Brazil, in addition to a slowdown in production due to record low
wind speeds in the first few months of the year, prices returned to their
contractual level indexed to inflation. In 2018, Voltalia took advantage
of non-recurring opportunities. By temporarily suspending the execution of
contracts for some of its wind farms (60 MW at Areia Branca and 99 MW at
Vila Para), Voltalia had managed to increase selling prices and generate
around EUR25 million of additional revenues of over the year.
· Revenues and EBITDA in other countries were up overall, due in
particular to improved performances in France and the contribution made by
new plants.
Services: strong growth in revenues and return to profitability
Change
In EUR millions H1 2019 H1 2018 At actual rates At constant
rates
Before
eliminations of
services
provided
internally
Revenue 73.9 39.2 +88% +88%
EBITDA 1.2 (2.7) n/a n/a
EBITDA margin 2% (7)% +8pts +9pts
At constant exchange rates, Services revenues for the first half of 2019
were up 88% on 2018. EBITDA was positive in each business lines.
· Total revenues (internal and external) from the Development,
Construction & Equipment Procurement business continued to grow as a
result of i) the acceleration in Construction projects for Voltalia's own
plants (472 MW under construction at the end of June 2019) and ii)
development project sales in France and Brazil. This increase in business
volumes was reflected in positive EBITDA.
· Total revenues (internal and external) from Operation & Maintenance were
stable, as was the portfolio of assets operated and maintained by Voltalia
which remained at around 1 GW.
With a EUR14.7 million negative impact on EBITDA, revenues eliminations were
up three-fold on the first half of 2018, at EUR62.5 million. This
illustrates the value enhancing strategy of internalizing construction and
O&M activities. They reflect high volumes of activity, and notably the
construction of 472 MW of Group-owned new power plants as part of the
doubling of the installed capacity by 2020.
The audited revenues of the Services business in H1 2019 are lower than the
unaudited figures announced in the press release of July 17, 2019. The
EUR11.9 million difference corresponds to revenues from the sale of 60% of a
solar plant in, which has been previously repowered by Voltalia (Coco-Banane
solar farm in French Guiana). The income will be recognized in the second
half of 2019, as the definitive disposal in the sense of the IFRS rules is
deemed to have occurred 18 September 2019 and not 28 June 2019, as
originally envisaged.
Other income statement items: drop in net earnings, attributable to the drop
in EBITDA
Change
In EUR millions H1 2019 H1 2018 At actual At constant rates
rates
EBITDA before 28.6 29.9 -4% -1%
eliminations and
corporate
Eliminations and (14.7) (8.4) +75% +75%
corporate
EBITDA 13.9 21.5 -35% -30%
Depreciation, (9.4) (12.7) -26% -21%
amortisation, and
provisions
Other financial (0.2) 0.6 n/a n/a
income and expenses
Operating revenue 4.3 9.4 -54% -50%
(EBIT)
Financial result (15.3) (16.6) -8% -4%
Taxes and net income (0.9) (2.3) -60% -58%
of equity affiliates
Minority interests 3.2 3.6 -12% -8%
Net profit (loss) (8.7) (5.9) -47% -49%
(Group share)
EBITDA stood at EUR13.9 million, the drop of EUR7.6 million compared with
2018 being primarily due to a particularly unfavourable basis of comparison
in Brazil.
Depreciation, amortisation and provisions were down EUR3.3 million, new
allocations relating to the commissioning of new plants (+EUR0.5 million)
and the impact of the application of IFRS 16 (+EUR1.7 million) being more
than offset by the reversal of EUR6.2 million of provisions related to the
extinguishment of construction contract guarantees for third-party clients
in the United Kingdom and Jordan.
Financial result improved by EUR1.3 million, mainly due to the combined
effects of lower interest rates for plants in Brazil, foreign exchange gains
and the remuneration of cash, which more than offset the rise in the cost of
debt related to the new financing put in place since July 2018.
Taxes were down by EUR1.2 million, driven by the drop in Voltalia's taxable
profits in Brazil.
Minority interests recorded a loss of EUR3.2 million. Plants co-owned with
minority partners recorded low production levels in the first half and have
a slower profitability ramp-up profile than fully-owned plants.
These items limited the net loss attributable to owners of the company to
EUR8.7 million, down EUR2.8 million from the EUR5.9 million recorded in the
H1 2018.
Simplified consolidated balance sheet
In EUR millions 30/06/2019 31/12/2018
Goodwill 46,0 46.0
Intangible assets Other intangible assets 137,8 96.4
Property, plant and equipment 694,5 608.2
Tangible and intangible fixed assets 878,3 750.6
Cash and cash equivalents 130,3 108.6
Other assets 124,7 127.4
Total assets 1 133,3 986.6
Equity, Group share 303,3 317.6
Minority interests 50,7 54.7
Financial debt 653,7 506.0
Other current and non-current liabilities 125,5 108.3
Total liabilities 1 133,3 986.6
The increase in assets in the first half of 2019 was mainly due to continued
investment in development projects and the construction of new plants over
the period.
At 30 June 2019, tangible assets reached EUR694.5 million; plants in
(MORE TO FOLLOW) Dow Jones Newswires
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DJ Voltalia SA: H1 2019 results are lower: improved -2-
operation or construction accounted for 98% of these tangible assets.
The change since 31 December 2018 was mainly due to the contribution of new
power plants, partially offset by the straight-line depreciation of plants
in operation (-EUR13.6 million) and a negative exchange rate impact (-EUR6.2
million).
At 30 June 2019, intangible assets include for the first time first
recognition of a EUR31.1 million asset related to rights of use under the
IFRS 16 norm.
The Group's financial structure is robust, with a gearing of 65%[1]. The
Group's total financial debt, contracted in local currency, is largely
backed by power production plants.
At 30 June 2019, the Group's net cash position stood at EUR130.3 million, up
by EUR21.7 million on 31 December 2018.
IFRS 16
IFRS 16 provides for the recognition of all leases on the lessee's balance
sheet, with recognition of an asset (representing the right to use the
leased asset during the term of the lease) and a liability (under the
obligation to pay rent). The right of use (asset) and the lease debt, equal
at the beginning of the contract, are calculated as the present value of
future lease payments.
For Voltalia, these contracts are mainly (72%, ie EUR22 million) emphyteutic
leases of land where Voltalia will build its plants. The balance is made of
office rentals (21%) and motor vehicles or equipment (7%).
The application of IFRS 16 has the following effects on the income statement
and balance sheet as at June 30, 2019:
In EUR millions 30/06/2019 30/06/2019
IFRS 16 EBITDA impact +2.2 intangible assets 31.1
Asset depreciation (1.7) net debt 31.3
EBIT 0.5
Interest expense (0.7)
Net Result (0.2)
Recent developments
Success of the EUR376 million capital increase in July 2019
On 11 July 2018, Voltalia announced that its EUR376 million capital increase
with preferential subscription rights for shareholders had been a great
success. When the subscription period ended on 8 July 2019, total demand
stood at EUR411.2 million, or a 109.5% subscription rate. This gives
Voltalia additional resources with which to achieve a consolidated capacity
of at least 2.6 GW in operation or under construction by 2023: EUR300
million of the funds raised are to construct 1.6 GW of new production
capacity, in addition to the 1 GW installed in 2020, the balance being used
to finance targeted acquisitions in its new regions or to develop the
services business.
New advances in Brazil
In early September, Voltalia announced the completion of a 2 GW transmission
line for its Serra Branca wind farm cluster, a series of projects in
North-Eastern Brazil, resulting in a six-fold increase in the injection
capacity on the wind farm cluster's network. The rapid development and
construction of this new line will enable the VSM 1&2 wind farms (totalling
291 MW) to be brought into service between November 2019 and mid-2020, ahead
of Voltalia's initial forecasts.
Repowering and sale of 60% of the Coco-Banane solar plant in French Guiana
Voltalia has ensured the repowering of the Coco-Banana solar power plant,
improving its production and capacity. Voltalia then sold a 60% stake in the
plant to a financial investor. Commissioned in 2010, Coco-Banane is
Voltalia's oldest solar park in operation, but also the most subsidized.
This sale, illustrating Voltalia's strategy of minimizing its exposure to
public subsidies, generates revenues of EUR 11.7 million in H2 2019. The
transaction illustrates the high quality of Voltalia's assets and its
ability to create operational value.
Increased presence on the corporate market
With the emergence of competitive renewable energies, direct supply to
companies was identified as one of Voltalia's main development
opportunities. The Group is a pioneer on this market, with the signings of
two contracts in a row: the first (Boulanger, 5 MW) and then the largest
Corporate PPAs (SNCF, 143 MW) in France. Since January 2019, a total of 211
MW of contracts with corporate clients has been signed. With the integration
of Helexia[2], whose acquisition was finalised on 25 September, Voltalia is
now in a position to offer companies differentiating, global solutions,
ranging from green electricity supply to energy efficiency services. The
Group is aiming for a rapid rollout of Helexia in countries, notably
emerging, where Voltalia is already established, such as Brazil and Morocco.
Outlook
Improvement expected in H2 compared with H1
In terms of Energy sales, Voltalia expects the usual seasonality of
production to result in higher production in H2 than in H1. In the absence
of prices increase in Brazil, these will remain within the regular long-term
power sales framework of set tariff fully indexed to inflation, as in H1
2019. The contribution from new plants in France, Egypt and Brazil, will
have a positive effect on volumes, mostly in Q4.
With regard to Services, Voltalia will benefit from the repowering and the
sale, already closed, of 60% of the Coco-Banane wind farm (4.7 MW) in French
Guiana, as well as from progresses made on the construction of the Group
owned plants as well as for third-party clients in Kenya, Burundi, Italy,
Albania and Greece.
2020 and 2023 targets confirmed supported by a growing pipeline of projects
At the end of June 2019, Voltalia has generating capacity in operation and
under construction of more than 1 GW and a portfolio of projects under
development of 7.1 GW, up by 16% compared to end December 2018, and of which
0.6 GW is secured. The Group is in a position to confirm its mid- and long-
term objectives:
2020 2023
Capacity 1 GW in operation >2.6 GW in operation or
construction
EBITDA EUR160-EUR180 million[3] EUR275-EUR300 million
Next on the agenda: Q3 2019 revenues on October 23, 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 7.1 GW, of which 0.6 GW is secured.
The Group has 697 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 &
Small indices. The Group is also included in the Gaïa-Index, an index for
socially responsible midcaps.
Voltalia Actifin
Investor Relations: Press Contact: Jennifer Jullia
invest@voltalia.com
jjullia@actifin.fr
+33 (0)1 81 70 37 00
+33 (0)1 56 88 11 11
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 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 section 2.2 "Risk factors" of the 2018
document de référence filed with the French financial market authority (the
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September 25, 2019 17:43 ET (21:43 GMT)
Autorité des marchés financiers - the "AMF") on March 29, 2019 under number
D.19-0222. 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.
Installed capacity at 30 June 2019
In MW Wind Solar Biomass Hydro Hybrid 30 June 2019
Brazil 417.3 16.0* 433.3
France 52.2 23.7 75.9
French Guiana** 4.5 1.7 5.4 11.6
United Kingdom 7.3 7.3
Greece 4.7 4.7
Portugal 1.0 1.0
Total 469.5 41.2 1.7 5.4 16.0 533.8
* 4 MW of solar and 12 MW thermal
Electricity production report
(in GWh) Wind Solar Biomass Hydro Hybrid Total H1 2019
Brazil 634.6 20.5 655.1
France 55.5 21.0 76.6
French Guiana 2.1 4.8 9.8 16.6
United Kingdom 4.0 4.0
Greece 3.6 3.6
Portugal 0.7 0.7
Total 690.1 31.4 4.8 9.8 20.5 756.6
Includes the production of Oiapoque solar
Consolidated income statement (unaudited)
In EUR thousands At 30 June 2019 At 30 June 2018 Change %
Revenue 56 882 74 657 (24)%
Purchases and (2 806) (17 192) (84)%
sub-contracting
External expenses (24 401) (23 874) 2%
Payroll expenses (13 530) (11 822) 14%
Other operating (2 222) (308) x 7,2
income and expenses
Total operating (42 959) (53 195) (19)%
expenses
EBITDA 13 923 21 463 (35)%
% EBITDA 24% 29%
Other financial (206) 640 x (0,3)
income and expenses
Allocations and (9 419) (12 742) (26)%
reversals of
depreciation,
amortisation and
provisions
Operating revenue 4 298 9 360 (54)%
(EBIT)
% EBIT 8% 13%
Borrowing costs (17 765) (15 287) 16%
Other financial 2 480 (1 324) x (1,9)
income and expenses
Income tax and (1 147) (2 309) (50)%
other taxes
Income from 237 24 x 9,9
companies at equity
Net profit (loss) (11 897) (9 536) 25%
% Net profit (loss) n/a n/a
Group Share (8 739) (5 938) 47%
Minority interests (3 159) (3 599) (12)%
Earnings per share
(in euros):
Before dilution (0,179) (0,121) n/a
After dilution (0,178) (0,118) n/a
Consolidated balance sheet (unaudited)
In EUR thousands At 30 June At 31 Change %
2019 December
2018
Goodwill 46 033 46 033 - n/a
Intangible assets in 137 783 96 418 41 365 43%
progress
Property, plant and 694 450 608 228 86 222 14%
equipment
Equity affiliates 2 635 2 303 332 14%
Non-current financial 22 766 22 012 755 3%
assets
Deferred tax assets 1 020 367 653 x 2,8
Other non-current 156 226 (70) (31)%
assets
Non-current assets 904 844 775 588 129 256 17%
Inventories and work in 48 966 30 868 18 099 59%
progress
Trade receivables 29 636 41 439 (11 803) (28)%
Other current financial 1 953 3 055 (1 102) (36)%
assets
Other current assets 15 806 25 706 (9 900) (39)%
Current tax assets 1 721 1 359 362 27%
Cash and net cash 130 346 108 608 21 738 20%
equivalents
Current assets 228 429 211 034 17 395 8%
Total Assets 1 133 274 986 622 146 651 15%
Group equity 303 326 317 624 (14 298) (5)%
Non-controlling 50 723 54 747 (4 025) (7)%
interests
Equity 354 049 372 371 (18 323) (5)%
Non-current provisions 2 791 5 308 (2 517) (47)%
Provisions for 962 805 157 20%
post-employment
benefits
Deferred tax 1 397 1 658 (261) (16)%
liabilities
Long-term borrowings 509 188 435 342 73 846 17%
Other non-current 7 309 3 665 3 644 99%
financial liabilities
Non-current liabilities 877 1 464 (587) (40)%
Non-current liabilities 522 524 448 242 74 282 17%
Current provisions 8 112 12 876 (4 764) (37)%
Short-term borrowings 144 519 70 654 73 865 x 2
Trade and other 73 715 48 677 25 038 51%
payables
Other tax liabilities 7 681 11 427 (3 746) (33)%
Other current 22 674 22 375 299 n/a
liabilities
Current liabilities 256 701 166 009 90 692 55%
Total Liabilities 1 133 274 986 622 146 652 15%
=---------------------------------------------------------------------------
[1] Financial Debt / (Equity + Financial Debt)
[2] see press release published today
[3] Exchange rate: 1 EUR = 4.3 BRL
Regulatory filing PDF file
Document title: pdf-VEN
Document: http://n.eqs.com/c/fncls.ssp?u=SMAWAMGCDU [2]
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: 880213
End of Announcement EQS News Service
880213 25-Sep-2019 CET/CEST
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2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=7ac9cdefa0d64136a452b74abb73f15a&application_id=880213&site_id=vwd&application_name=news
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