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Albioma : 2019 annual results

ALBIOMA

Press release

Paris La Défense, 3 march 2020

2019 annual results

Revenue up 18% and EBITDA up 12%

Continued increase in the share of renewables in the energy mix, to 67%

ESG performance: entry into the Top 20 of the energy sector, with an 8-point gain in the Vigeo Eiris rating

Albioma's Board of Directors, chaired by Frédéric Moyne, met on 02 March 2020 and approved the Group's consolidated financial statements for the 2019 financial year.

"We are today reporting solid results, with revenues up 18% to €505.7 million and EBITDA up 12% to €182.9 million. These results demonstrate the expertise of our teams and Albioma's long-term robustness thanks to the good performance of our thermal and solar power plants, combined with an excellent operational year for the Group's new biomass facilities in overseas France and Brazil.

By the end of 2019, the share of renewable energy in our mix will reach 67%. In line with the objectives set out in the Paris Agreements, our Group will continue its drive for ever more environmentally friendly operations to achieve an energy mix of at least 80% renewable energy by 2023, in particular through the 100% biomass conversion of our thermal power plants in overseas France, already underway in Guadeloupe. The clear improvement in our extra-financial performance was recognised by an 8-point gain in our Vigeo Eiris rating, which places us in the Top 20 of our sector," comments Frédéric Moyne, Chairman and Chief Executive Officer of Albioma.

Consolidated key figures for 2019

In millions of euros (audited figures) 2019 2018

(reported)
Change %
Revenue 505.7 428.3 +18%
EBITDA 182.9 162.6 +12%
Net income 54.2 53.6 +1%
Net income, Group share 44.1 44.2 -

Up 18%, revenue stood a €505.7 million (19% excluding the effect of fuel prices), thanks to:

  • the contribution of new facilities: Galion 2 in Martinique, the Saint-Pierre combustion turbine in Reunion Island and Esplanada in Brazil,
  • the increase in fixed premiums due to contractual indexation,
  • riders to contracts signed with EDF,
  • consolidation scope effects related to the acquisition of Eneco.

These items offset the contractual reductions in the historical fixed premiums of the Reunion Island power plants.
In line with the revenue trend, EBITDA for the year rose by 12% to €182.9 million.

Highlights

Operations

  • Excellent performance at all facilities
  • Very good operational year for the new installations (Galion 2 in Martinique, combustion turbine in Saint-Pierre, Reunion Island, and Esplanada in Brazil)

Development

  • Finalisation of IED works in Guadeloupe and Reunion Island
  • Beginning of conversion works at Albioma Caraïbes (Guadeloupe)
  • Construction of 14 MWp of photovoltaic power plants (100 plants including 9 with storage)
  • First network service project winner of the CRE call for tenders in Mayotte

France

Thermal Biomass

Very good availability of the thermal power plants in overseas France and excellent performance of new power plants

The availability of the thermal power plants in France stood at 88.2% in 2019 (compared with 87.9% in 2018), impacted by scheduled outages - contractually compensated by EDF - related to the finalisation of IED works on Reunion Island (last unit of Bois-Rouge) and Guadeloupe (Le Moule). For its first year of operation, the 100% bagasse/biomass plant, Galion 2, has an excellent availability rate (91.8%), as does the combustion turbine operating on bioethanol in Saint-Pierre, Reunion Island (92.0%).

Total electricity production from the thermal power plants in overseas France is on the rise (2,061 GWh compared with 1,874 GWh in 2018), thanks in particular to the new plants: excluding the effect of commissioning, production is stable compared with 2018.

EBITDA for the business is up 11% compared with 2018 (€123.6 million).

Construction and development of projects

The works related to the modernisation investments in existing installations (fume treatment) has been finalised. Annual maintenance outages, during which the Bois-Rouge and Le Moule plants continued the programme of works to make their fume treatment systems compliant with the European Industrial Emissions Directive (IED), were carried out under very good conditions.

Works began in 2019 to convert the Albioma Caraïbes plant to run exclusively on biomass before the end of 2020. At the Port of Guadeloupe site, the pellet storage dome has now been completed. The work will reduce emissions by more than 265,000 tonnes of CO2 equivalent (a net decrease of around 87% compared with current coal operation), and will thereby increase the renewable portion of Guadeloupe's energy mix from 20% to 35%.

Solar power

Significant increase in production and commissioning of new plants

Electricity production from the Solar power business amounted to 121 GWh, compared to 92 GWh in 2018. This strong increase is mainly due to the consolidation scope effect, following the acquisition of Eneco's French subsidiary in December 2018, favourable sunshine conditions in mainland France and the production from the installations commissioned, notably on Reunion Island (Port Ouest, 1.3 MWp with storage), Mayotte and Guadeloupe (Sainte Rose, 3.3 MWp with storage). Excluding the scope effect related to the acquisition of Eneco, production is up 5% compared with 2018.

EBITDA for the business totalled €36.3 million in 2019, up 21% compared with 2018 (€30.1 million).

Project development

Confirming its position as the leader in solar power in overseas France, the Group has continued to build photovoltaic power plants there and is planning to commission the 1.25 MWp plant with storage at Stade de l'Est on Reunion Island in the near future.

Furthermore, Albioma was announced the winner of a 7.4 MW battery power storage project with a capacity of 14.9 MWh during the first call for projects organised by the French energy regulatory commission (Commission de Régulation de l'Énergie - CRE) , relating to storage facilities in Mayotte. This innovative project will provide an arbitration service for the grid operator by drawing electricity, especially during periods of strong sunshine, and reinjecting it later, during peak consumption times. The load transfer will provide flexibility to the electricity system and increase the penetration of renewable energies on the Mayotte network and in particular solar power. It is scheduled to begin operating in 2021.

Mauritius

Excellent performance from the plants

Facilities in Mauritius reported 91.8%, compared with 85.4% in 2018. Electricity production grew from 1,084 GWh in 2018 to 1,200 GWh in 2019.

EBITDA for the business was €2.6 million (corresponding to the share of net income of equity-accounted companies) in 2019 (compared to €3.1 million in 2018).

Brazil

Scope effect related to the consolidation of the Esplanada plant and the very good operating performance of the facilities

Production in Brazil is up 64% to 391 GWh compared with 238 GWh in 2018. The contribution of Esplanada, acquired on 21 December 2019, largely explains this increase. The two plants Rio Pardo and Codora Energia performed well, supported by higher cane volumes compared with 2018 (3.4 Mtp vs. 2.7 Mtp in 2018).

In addition, the approval of the judicial recovery plan of the sugar partner adjacent to our Rio Pardo plant enabled a favourable restructuring of the sugar refinery's balance sheet.

EBITDA increased to €10.7 million in 2019 compared with €6.5 million in 2018.

Project development

Ahead of the initial schedule, the Group's fourth Brazilian unit, Vale do Paraná (48 MW installed eventually, 40% owned) is scheduled to be commissioned at the end of the first half of 2020.

A strong balance sheet to finance growth

Consolidated gross financial debt increased in particular as a result of debt raised to finance projects (IED, biomass conversion, new photovoltaic power plants) and to refinance the solar assets acquired following the acquisition of Eneco's French subsidiary, with new non-recourse project debt. It amounted to €938 million at the end of 2019, as against €846 million at the end of 2018. Projected debt is €834 million (as against €702 million at the end of 2018). The net debt / EBITDA 12 moving month ratio improved to 4.3x at 31 December 2019 (compared with 4.6x at 31 December 2018).

The Group's cash and cash equivalents, including security deposits, amounted to €165 million as at 31 December 2019 compared with €98 million as at 31 December 2018.Consolidated net financial debt was €773 million (compared with €747 million at the end of 2018).

Dividends

The Board of Directors will submit to the Shareholders' Meeting a proposal to distribute a dividend of €0.70 per share, up 8% compared with 2019, with an option for 50% to be paid in new shares. This proposal is part of a dividend growth policy with a distribution target of around 50% of net income (Group share) excluding exceptional items.

2020 objectives

For 2020, the Group announced its targets for EBITDA of €200 million to €210 million and net income (Group share) of €48 million to €54 million.

Outlook

The Group plans to invest between €450 and €650 million over the period 2020-2023 while maintaining a solid financial structure.

Next on the agenda: revenue figures for the first quarter of the 2019 financial year, on 27 April 2020 (after trading).

About Albioma Contacts
An independent renewable energy producer, Albioma is committed to the energy transition thanks to biomass and photovoltaics.

Albioma operates in Overseas France, France metropolitan, Mauritius and Brazil. For 25 years, it has developed a unique partnership with the sugar industry to produce renewable energy from bagasse, the fibrous residue of sugar cane.

Albioma is the leading producer of photovoltaic energy in Overseas France, where the company builds and operates innovative projects with storage, Albioma has strengthened its position in mainland France.
Investor
Julien Gauthier
+33 (0)1 47 76 67 00

Media
Charlotte Neuvy
+33 (0)1 47 76 66 65
presse@albioma.com
   
Albioma shares are listed on NYSE EURONEXT PARIS (sub B) and eligible for the deferred settlement service (SRD) and PEA-PME plans (ISIN FR0000060402 – ticker: ABIO).

The Group is also included in the Gaïa-Index, an index for socially responsible midcaps.
www.albioma.com

 


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