(Boursier.com) — French Energy is still falling slightly after losing almost 10% during the last two sessions. The company revealed a half-year EBITDA of €10.8 million, with an EBITDA margin of 62%, beyond the target margin objectives for FY2026, as the Group continued to control its costs, with costs of goods and services stable over the half-year (excluding 979,000 euros of previous ARENH rights which had been retroceded as of December 31, 2022). The Operating Profit amounts to 9 ME, or 52% of turnover. With financial charges, associated in particular with green bonds of 45 ME dedicated to the development of FDE’s low-carbon energy portfolio, and current and deferred taxes of 1.4 ME, the Group’s share of net income comes to 6.3 ME , compared to 10.4 ME as of December 31, 2022.
Over this first half of 2024, FDE confirms its ability to generate operational cash flows of 10.5 ME (before variation in WCR of 2.6 ME). This operational excellence contributes to strengthening the Group’s cash position, which has made repayments of bank loans, in particular the bridge financing for the 15 MW photovoltaic project and the BPI-SAARLB loan from Gazonor, for a total amount of 4.9 ME.
The Group has a cash position of 40.1 ME (+13.5 ME compared to December 31, 2022) with a very conservative net debt to equity ratio of 28%, and a Net Debt/EBITDA ratio of 1.04x, allowing FDE to calmly finance its growth at a competitive cost of capital.
Thus, the investments made by FDE in its key energy activities have resulted in a significant generation of recurring cash flows and the strengthening of the Group’s balance sheet. In the opinion of the board of directors and management of FDE, the entire activities of FDE are worth significantly more than the current market capitalization. In this context, and under the authorizations currently in place, FDE will relaunch a share buyback program, thus making it possible to increase the intrinsic value per share of FDE securities for the benefit of existing shareholders, without affecting its financing capacity for the development plan for 2026.
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FDE reiterates its objectives of annualized turnover of more than 100 ME, an EBITDA of more than 50 ME, combined with more than 10 million tonnes of CO2eq emissions avoided per year by 2026.
TP ICAP Midcap evokes good cash generation and robust financial base. The broker reiterates its confidence in management, which has so far successfully executed its adjustable model depending on the pace of growth and obtaining financing. The relaunch of the stock purchase program demonstrates management’s confidence in the long-term health and growth prospects of the company.
Oddo BHF revises its estimates downwards and its price target from 65 to 55 euros. The fall in market prices for gas and electricity and the slow pace of administrative authorizations, which slow down the rate of commissioning of new cogeneration units, have weighed on the stock’s performance since the start of the year. The group’s multiples for 2026 nevertheless seem very attractive (6.1x in EV/EBITDA), according to the broker, who reiterates its recommendation
‘outperformance’.