Voltalia SA
Voltalia SA: Q2 2020 consolidated revenues up by 97% at constant currency -
H1 2020 record contract wins support mid-term development plan
21-Jul-2020 / 18:11 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Further revenue growth acceleration in Q2 2020
· Energy sales solid growth driven by new Voltalia power plant
installations and the successful integration of Helexia
· Services decline due to lower internal volumes, but robust revenues
growth with third-party clients (x3 vs Q2 2019)
Record level of new contracts in H1 2020
· 595 MW of new long-term power sale contracts won in various countries,
and confirmed leadership with corporates
· Fast-growing development of Services for third-party clients
Capacity and EBITDA ambitions maintained, in a less predictable environment
due to the sanitary and economic crisis
· 2020 ambitions: little impact on ongoing operations but increased
volatility of the Brazilian real against the euro
· 2023 ambitions: targeted capacity now secured at 81% by power sales
contracts already won
Voltalia (Euronext Paris, ISIN code: FR0011995588), an international player
in renewable energies, announces today its Q2 2020 revenues.
"In Q2 2020, Voltalia's revenues are growing sharply reflecting the
expansion of our portfolio of plants, increased Services sales to
third-party clients as well as the successful integration of Helexia. This
quarter was also marked by the commissioning of VSM1 (163 megawatts), our
largest wind farm worldwide, proving the continuous mobilization of our
teams in very challenging times. This new step brings our total installed
capacity in operation to 820 MW. The environment created by the sanitary and
economic crisis is less predictable on the short-term, but our business
model is long-term driven. The record-high level of 595 MW of new long-term
contracts won during the first half of 2020, which secures more than 80% of
our 2023 capacity ambitions provides a perfect example" comments Sébastien
Clerc, CEO of Voltalia.
Q2 and H1 2020 revenues
In EUR Q2 Q2 2019 Change Change H1 H1 Change Change
million 2020 at 2020 2019 at
consta consta
nt FX nt FX
rates[ rates1
1]
Energy sales 32.3 24.1 +34% +59% 62.5 45.5 +37% +56%
Services 29.0 38.3 -24% -18% 50.2 73.9 -32% -29%
Eliminations[2] -9.7 -32.3 -70% -68% -24.0 -62.5 -62% -60%
Consolidated 51.7 30.1[3] +72% +97% 88.7 56.93 +56% +74%
revenues
Other key figures
Q2 2020 Q2 2019 Change H1 2020 H1 2019 Change
Production (in 519 410 +27% 915 757 +21%
GWh)
Installed 820 534 +54%
capacity
Business review
Energy sales
H1 2020 revenues were EUR 62.5 million, up by 56% at constant currency,
driven by the increase in installed capacity in operation across
geographies, reaching 820 MW at the end of June 2020. Growth at current
exchange rates was +37%: the global health and economic crisis led to a
weakening of emerging currencies against the euro. The average EUR/BRL rate
was 5.4 in H1 2020 compared with 4.3 in H1 2019.
Helexia, a solar rooftop and energy efficiency specialist consolidated since
July 2019, represented 18% of H1 2020 revenues. Helexia's revenues were 24%
higher when compared with H1 2019. New plants started production in Spain
and Portugal in Q2 2020, with total capacity reaching 71 MW globally.
Q2 2020 revenues were EUR 32.3 million, up 34% compared to Q2 2019. The
increase reached 59% at constant exchange rates:
· in Brazil, 55% of revenues, despite unfavourable weather conditions,
Voltalia recorded growth in production with the ramp-up of the new VSM1
wind farm. Now the biggest Voltalia wind farm in operation (163 MW), VSM1
recorded revenues from the sale of electricity and compensations received
from suppliers for exceeding the deadline specified in their contracts;
· in France, 26% of revenues, production increased sharply thanks to new
solar (including rooftops) and hydroelectric power plants installed and
consolidated since Q3 2019 and the good performance of older wind power
plants;
· in the other countries (United Kingdom, Belgium, Portugal, Spain, Italy,
Greece and Egypt), 19% of revenues, Voltalia recorded the first
contribution from new roof- and ground-mounted solar power plants.
Performance was excellent in Egypt, above expectations.
Services
H1 2020 revenues were down by 29% at constant currency and by 32% at current
exchange rates, reflecting lower internal sales in the absence of strongly
contributing projects. On the other hand, sales to third-party clients were
multiplied by more than 2 compared with H1 2019, driven by the strong
commercial activity in late 2019 and early 2020.
Q2 2020 revenues were EUR 29.0 million, down 18% at constant currency from
Q2 2019 and 24% at current exchange rates.
· With revenues of EUR 23.2 million in Q2 2020, the Development,
Equipment Procurement and Construction business is down compared with Q2
2019. This is due to lower internal sales, in the absence of strongly
contributing projects, compared with Q2 2019 which enjoyed significant
Development and Construction internal revenues, especially from the Cacao
project in French Guiana. Sales to third-party clients increased thanks to
Construction contracts in progress, notably in Africa and in Europe
(mainly Portugal), and sales of ready-to-build projects with services for
a total of 94 MW in Brazil. This includes the sale of a 67 MW wind project
to Total-Eren[4], and a new partnership signed with an international
construction company.
· With revenues of EUR 5.8 million in Q2 2020, the Operation &
Maintenance activity is slightly down compared with Q2 2019 (-3% at
constant currency) which included the repowering of the Coco-Banane solar
plant in French Guiana, before it was sold in Q3 2019.
Revenues eliminations followed the drop in internal sales and were divided
by 3.3 compared to Q2 2019, to EUR 9.7 million.
Recent commercial developments (selected)
· In April, Voltalia, with its subsidiary Helexia, won tenders in France
for five projects and a total installed capacity of 28 MW, including 5.6
MW of new projects. One project is located in French Guiana, a first for
Helexia, and marks the arrival of the rooftop specialist on this market
well-known to Voltalia.
· In May, Voltalia won a 30-year concession contract for a 140 MW solar
plant in Karavasta, Albania. The Karavasta project will be Voltalia's
second biggest solar plant worldwide. Voltalia has been active in Albania
since 2018, with turnkey-construction contracts for third-party clients on
three photovoltaic plants (7.5 MW) located near the future Karavasta
project.
· In June, Voltalia signed a 20-year corporate PPA[5] with Auchan Retail
to supply the retailer's French sites with solar power. Voltalia will
develop, build, operate, maintain and fund the new dedicated solar plants
with a total capacity of 61 MW. Commissioning of the new solar plants is
expected between 2021 and 2022.
· Early July, and to amplify its contribution to the energy transition,
Voltalia signed a partnership with IKEA France to provide turnkey solar
rooftop solutions to IKEA's clients. Leveraging the technical know-how and
the power of Voltalia's sourcing department, the partners intend to enable
the greatest number to have access to solar power.
2020 and 2023 capacity and EBITDA ambitions maintained in a less predictable
environment due to the sanitary and economic crisis
As communicated during the presentation of the 2019 annual results[6], the
sanitary and economic crisis has created new risks that make Voltalia's
environment less predictable. The three main risks identified by Voltalia
were i) the ability to carry out the construction of current and future
Voltalia projects; ii) the capacity of Voltalia's clients in Services
(mainly development sales and construction projects) to move forward in
their decision-making process; and iii) currency variations (mainly the
Brazilian real).
Both the construction and sales of services risks have had a very limited
impact on Voltalia's H1 2020 performance. Currency variations had a negative
impact, with a EUR/BRL average rate at 5.4, and a closing rate at 6.1.
Based on the assessment of these impacts as of today, Voltalia maintains its
ambitions:
· reaching, at the end of 2020, 1 GW of owned capacity in operation and
1.5 to 2.0 GW of operated capacity, both for Voltalia and third-party
clients, and generating an EBITDA of 160 to 180 million euros in 2020;
· reaching, at the end of 2023, 2.6 GW in operation or under construction
and an EBITDA between 275 and 300 million euros. 81% of the 2.6 GW
ambition is secured by long-term contracts term already won.
Next on the agenda: H1 2020 results on September 24, 2020 (before market
open)
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 has
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