Voltalia SA
"Our Q1 performancereflects lowerthan average wind speeds in Brazil witha normalized pricinglevel,as well as the high mobilization of Services teams tobuildour new plants. This intensive construction activity will enable usto effectively double the size of Voltalia by end-2020. As ongoing constructionsof our new power plants are progressing very well and, consideringan updated commissioning calendar,we are now expecting 2020 EBITDA to be between EUR160-EUR180 million, at the upper-end of our initial guidance", declaresSébastien Clerc, CEO of Voltalia. Voltalia (Euronext Paris, ISIN code: FR0011995588), an international player in renewable energies, announces today its revenues of 2019 first quarter (Q1 2019)and revised 2020 EBITDAguidance at the upper-end of theinitial range. Q1 2019 revenues
Business review Energy sales Q1 2019 revenues total EUR21.4 million, down by 16% at constant exchange rates compared with Q1 2018, which had benefited from the positive but non-recurring impact of the contract suspensionstrategy in Brazil.
Services Q1 2019 revenues reach EUR35.6 million,doubling compared withQ1 2018.
Strong activity of Services for the Group's own assets translates into higher eliminations, with 85% of the revenues of the Service business realised internally. Update on plants under construction
Constructions launched since H2 2018 are well on track. The two largest projects under construction are VSM 1 and VSM 2 (291 MW in total)in Brazil, for which the Group expects progressive commissioning between the end of 2019 and Q3 2020. Construction works of the other projects, located in France, French Guiana and Egypt, are also expected to be commissioned between the end of 2019 and Q3 2020 at the latest.In Egypt, for instance, all equipment is on site and supporting structures (PV trackers) are being installed, for a commissioning of the plant expected in H22019. Finally, Voltalia will start soon construction of the other secured projects in France and on the African continent. Voltalia can rely on seasoned construction teams and a global trackrecord of 1.3 GW built in 24 countries. Ongoing constructions are mainly located in France and Brazil, countries where Voltalia is already well-established and where the Group has already demonstrated excellent control of construction processes in the past. In new countries, Voltalia dedicates special resources with teams on the ground to monitors construction work progresses. 2019 trends: working on delivering on the 1 GW objective For Energy sales, Voltalia expects the usual seasonality in production to translate into lower production in H1compared with H2, potentially accentuated by the slow start to the year 2019 in Brazil. The first contribution of new plants in France and Egypt is expected to positively impact volumes, mostly in H2. In the absence of contract suspensions in Brazil, prices will remain within the regular long-term power sales framework of set tariff fully indexed to inflation. 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, some of them to be transformed in coming quarters. 2020 strengthened financial outlook: EBITDA expected to be between EUR160-EUR180 million In 2018, wins in France, Brazil and on the African continent brought Voltalia's secured projects to 1,048 MW, reachingthe 1 GW target set in 2016[7]. Construction is ongoing for 377 MW and the remainder will be launched shortly. Voltalia's two largest projects, VSM1 and 2 (291 MW in total),are expected to be progressively commissioned between end 2019 and end ofQ3 2020. In line with its strategy to generate additional value on projects in non-subsidized markets, Voltalia will sell 2019 and 2020 production on the free market mainly through short-term private power sales agreements. The private contracts already secured for VSM 1 havean average price more than 90% higher than the 20-year contracts' prices; private contracts for VSM2, to be commissioned later in 2020, will be securedin H2 2019. Voltalia expects Services' continuous contribution to the Group financial performance, with the growthof operated capacity partly dependent on sales of ready-to-build solar projects, which should accelerate in 2020 and beyond. Based ona revised commissioning calendar, Voltalia is able to update its 2020 EBITDA guidance. Theupdated EBITDA objectivealso considers less favourable operated capacity (1.5 to 2.0 GW vs. 3 GW) and exchange rates(1 EUR = 4.3 BRL vs. 1 EUR = 4.0 BRL) compared with when the objective was set. Voltalia now expects its 2020 EBITDA to be between EUR160-EUR180 million, at the upper-end of its initial guidance of EUR140-180 million.
Next on the agenda: Annual general meeting on May 20, 2019
About Voltalia (www.voltalia.com)
APPENDIX Report on electricity production
*includes the production of Oiapoque solar
*4 MW of solar and 12 MW thermal [1] 2019 revenues calculated at 2018 exchange rates [2]Eliminations: services provided by the Services business for Group-owned power plants are eliminated upon financial consolidation [3]Press release of January 9, 2019: voltalia.com/[...]Savane_des_Peres-construction [4]Press release of January 24, 2019:voltalia.com/[...]VSM2-construction [5]Press release of February 7, 2019: voltalia.com/[...]Brazil-construction-transmission [6]Press release of February 26, 2019: voltalia.com/[...]construction-Albania [7] Press release of September 19, 2016: voltalia.com/[...]new-objectives Regulatory filing PDF file Document title: PDF-VEN Document: http://n.eqs.com/c/fncls.ssp?u=RBRLENHSQY |
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: | First quarter financial report |
EQS News ID: | 803079 |
End of Announcement | EQS News Service |
803079 24-Apr-2019 CET/CEST