(AOF) – FDE, a carbon-negative energy producer, announces that the Board of Directors has decided to initiate a share buyback program for the next 12 months. This program will be for a maximum amount of 50 million euros in accordance with the authorization given by the general meeting of shareholders of FDE on November 30, 2022, and FDE may not hold more than 10% of the shares of its capital.
The investments made by the group in its energy activities in recent years have resulted in significant generation of recurring cash flows and the strengthening of its balance sheet. In the opinion of FDE’s Board of Directors and management, the entire underlying business of the group is worth significantly more than the current market capitalization.
In this context, share buybacks should increase the intrinsic value per share of FDE shares, to the benefit of existing shareholders.
The group’s financial strength remains a key axis for FDE in order to achieve its strategic objectives, focusing on the development of low-carbon energy solutions and the increase in the production of gas, electricity, heat, bio- Co2 and hydrogen in Europe.
The group’s current balance sheet structure and continued cash generation are more than sufficient to achieve the announced development plan for the 2026 financial year and FDE will ensure that any share buyback does not reduce the consolidated cash and cash equivalents position. below 15 million euros.
The amount of purchases will therefore vary depending on the levels of available cash, the attractiveness of new investments and other commercial opportunities beyond those announced in the 2026 plan, as well as the degree of discount compared to the estimate of the intrinsic value by management.
FDE may repurchase shares by way of open market purchases or through privately negotiated transactions, at the discretion of management. The liquidity contract remains managed by TP ICAP (Europe).
FDE thus reiterates its objectives of annualized turnover of more than 100 million euros, an EBITDA of more than 50 million euros, combined with more than 10 million tonnes of CO2eq emissions avoided per year by 2026.
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