(BFM Bourse) – The group recorded a jump in its gross operating profit last year thanks to an increase in its production and asset sales. The company also delivered 2024 objectives in line with expectations and confirmed its targets for 2027.
Like several companies specializing in renewable energies, Voltalia’s stock market journey has been chaotic, to say the least. The stock has lost more than 30% since January 1 and more than 66% over three years. Voltalia, which operates wind, solar, hydroelectric and biomass plants, was notably weighed down in 2022 by unfavorable weather and even by a power outage in Brazil last summer.
With the fall in its shares, Voltalia was ejected from the SBF 120, the second major benchmark index of the Paris Stock Exchange after the CAC 40. The group, indirectly controlled by the Mulliez family, left this index on March 18, a year after joining.
However, the specialist in renewable energies regains momentum on the stock market this Tuesday, after having delivered its results for its entire 2023 financial year. The title thus advances by 10.4% to 7.24 euros around 10:45 a.m., while the group returned to the green and significantly increased its gross operating income (Ebitda).
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New power plants commissioned
Already published, revenues increased by 6% both in published data and at current exchange rates, to stand at 495.2 million euros. Energy sales notably increased by 23% both in currency-adjusted and actual data.
This increase is due both to the indexation of sales prices in contracts linked to inflation and to the increase in production which increased from 3.68 gigawatt hours in 2022 to 4.34 gigawatt hours in 2023.
“The commissioning of new power plants reached a record volume of 795 megawatts, including 662 megawatts in the second half. They made a strong contribution in 2023 but without yet having their full-year effect, notably the 662 megawatts commissioned at the end of 2023” , explains Voltalia.
Gross operating income (Ebitda) jumped 76% to 241 million euros in 2023, for a corresponding margin which doubled, from 29% to 49%. 2023 Ebitda exceeded consensus expectations by 1%, according to TP ICAP Midcap.
Profitability was driven by the Ebitda margin on energy sales (65%) which was itself supported by “the improvement in the performance of the portfolio of power plants already in service in 2022, the contribution of new power plants, some of which benefit from high prices during the first months of operation and the increasing relative weight of solar in the portfolio, whose average sectoral Ebitda margin is higher than that of wind power”, explained Voltalia.
Asset disposals
Voltalia’s Ebitda was also helped by sales of power plants to its customers. If the amount has not been communicated, Invest Securities notes that “other current income and expenses, which include income from the sale of power plant assets, (…) amount to 100 million euros, or 42% of published Ebitda (compared to 29.8 million euros and 21% of gross operating profit in 2022)”.
“It can be noted that Voltalia sold 92 megawatts of operating assets only in the second half of 2023, including the Sarry and Molinons wind power plants and the Vila Acre 1 and Vila Acre 2 wind power plants,” continues the design office. .
The group’s net profit becomes positive again, with a profit of 29.6 million euros compared to a loss of 7.2 million euros in 2022.
For 2024, Voltalia has indicated that it expects an Ebitda of 255 million euros, of which around 230 million euros will be generated by energy sales. TP ICAP Midcap indicates that the group has set annual objectives “for the first time in its stock market history”.
The group has also confirmed that it is aiming for a normative Ebitda (that is to say calculated from a euro/Brazilian reais exchange rate of 5.5 and wind, solar and hydraulic production which corresponds to their long-term average). term) of 475 million euros in 2027 and 5 gigawatts of capacity in operation or under construction. The company specified, regarding the Ebitda objective, that 430 million euros would be generated by energy sales.
TP ICAP Midcap appreciates the entire publication, with a 2024 objective “in line with the consensus” while the 2023 results illustrate “the quality of management execution and the relevance of the group’s integrated model”.
“The weakness of the share price offers, in our opinion, a favorable valuation window, encouraging us to reiterate our recommendation,” concludes the research office which confirmed its purchase advice.
Julien Marion – ©2024 BFM Bourse
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