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Albioma : First-half 2020 results
Press release
Paris La Défense, 27 July 2020
First-half 2020 results
Strong rise in EBITDA (+19%) and net income, Group share (+34%)
COVID-19: resilience of the economic model and normal operation of all facilities across the half year
Albioma’s Board of Directors, chaired by Frédéric Moyne, met on 27 July 2020 and approved the Group’s first half consolidated financial statements at 30 June 2020.
Key figures as at 30 June 2020
In millions of euros | First half 2020 | First half 2019 | Change |
Revenue | 250.7 | 241.0 | +4% |
EBITDA | 100.4 | 84.5 | +19% |
Net income (Group share) | 24.4 | 18.2 | +34% |
The first half confirmed the continued revenue growth (+4%), the strong growth in EBITDA (+19%) and net income, Group share (+34%), reflecting the good performance of all facilities in the context of the health crisis.
Frédéric Moyne, Chairman and Chief Executive Officer of Albioma, said: "We are announcing solid results, with a strong increase in EBITDA and net income, Group share in the first half of 2020. These results demonstrate the resilience of our model, in an extremely complex economic and health environment. I would like to extend warm thanks to Albioma's teams, who have been working hard to ensure the operation of our power plants, in order to ensure the production of electricity in all our regions during the COVID-19 crisis. The beginning of the year was also marked by winning government solar power tenders in mainland France and overseas, illustrating our ability to continue enriching our project portfolio. Lastly, the Group's inclusion in the SBF 120 underlines investors’ interest in the energy transition strategy to which the Group has been committed for several years."
First-half 2020 highlights
COVID-19: normal functioning of thermal and solar installations
Conversion to biomass of the Albioma Caraïbes power plant: gradual resumption of work in Guadeloupe after a shutdown due to the confinement measures, leading to a delay of several months (commissioning planned for the 4th quarter of 2020)
20 MWp of solar projects won in government tenders in metropolitan France and in non-interconnected areas
Stock exchange: inclusion in the SBF 120 and CAC Mid-60 indices
France
Thermal Biomass
Normal operation of the facilities despite the COVID-19 context and additional contribution from the full-year effect of the latest IED incentives
The facilities recorded an availability rate of 86.7% over the period, compared with 85.0% in the first half of 2019. This figure includes the annual maintenance shutdowns, which took place under good conditions at the end of the confinement period, and the shutdown of the Le Moule unit 3 in Guadeloupe since 1 March 2020. The good availability of our facilities also made it possible to ensure the sugar campaign in the West Indies.
In the light of the epidemic and in strict compliance with government directives, particularly those concerning key business sectors including energy, the company has put in place appropriate measures to protect its employees, whose high level of mobilisation has enabled the normal operation of its facilities during the half year, with very good call rates despite a drop in electricity consumption observed in the regions. In this context, the total production of thermal installations in overseas France amounted to 984 GWh, slightly higher than the 975 GWh generated in the first half of 2019.
EBITDA for the business amounted to €82.6 million in the first half of 2020, a net increase of 19% compared to the first half of 2019 (€64.5 million), underpinned by the full-year effect of additional compensation related to fume treatment facilities under the programme to bring the plants into compliance with the IED Directive.
Project development
The conversion work on unit 3 of the Le Moule facility in Guadeloupe (formerly Albioma Caraïbes) was able to resume gradually from May, in particular with work advancing on the storage facilities in the port. Confinement and measures restricting movement forced the shutdown of the worksite, which began on 1 March 2020. The restart of this tranche, initially scheduled for mid-June, will therefore be delayed until the fourth quarter of 2020. Force majeure clause was claimed in order to compensate for the delay.
Solar Power
Slight increase in production and commissioning of new facilities
The performance of the photovoltaic plants is slightly up in the first half of 2020. Photovoltaic electricity production over the period reached 62 GWh compared with 61 GWh in the first half of 2019.
New facilities in Reunion Island and Mayotte were commissioned, including the power plant with storage at the Stade de l'Est in Reunion Island. Located in the town of Saint Denis, this facility, with 12,000 m² of solar panels installed on the roof of the stadium, will produce 1.7 GWh of electricity per year.
EBITDA for the business totalled €17.8 million, compared with €18.0 million in the first half of 2019.
Project development
In April 2020, the Group won 17 MWp of solar projects in Overseas France in the July 2019 governmental call for tenders for “ground-array and rooftop photovoltaic projects in non-interconnected areas”. This capacity is distributed across 27 projects (eight with storage and 19 without storage), construction of which is scheduled from 2021.
In June 2020, Albioma announced that it won 2.9 MWp of solar projects in mainland France in the government's call for tenders (CRE4) for "solar power plants on buildings with a capacity between 100 kWp and 8 MWp” in March 2020. This capacity is spread over four projects, located in the Auvergne-Rhône-Alpes and Provence-Alpes-Côte-d'Azur regions, where Albioma has been operating since December 2018, following the acquisition of Eneco France. Construction of these projects will begin in 2020 with commissioning scheduled for 2021.
Lastly, the construction of new facilities and the development of rooftop projects in Reunion Island, Mayotte and mainland France, which were temporarily halted due to COVID-19, were able to resume after the confinement period.
Brazil
Solid performance and optimisation of the shutdown of the Codora power plant between the sugar harvesting campaigns; unfavourable exchange rate effect
The three Brazilian thermal power plants achieved good operational performance with power generation of 131 GWh compared with 130 GWh in the first half of 2019. Thanks to a fully optimised annual maintenance shutdown, Codora was able to restart production in early March and use the excess bagasse stock from 2019.
The macro-economic situation is marked by the deterioration of the real/euro exchange rate during the first half of the year and historically low financing costs.
The EBITDA for the business reached €2.2 million over the period, compared with 3.0 million in the first half of 2019.
Project development
Construction of the Vale do Paraná power plant continued, with commissioning scheduled for the second half of 2020. This project, 40% owned, which represents capital expenditure totalling around BRL 100 million (around €16.4 million), aims to increase the generating capacity of an existing cogeneration plant to 48 MW by 2021.
Mauritius
Excellent availability of the plants
All the Group’s plants achieved excellent performances over the period. Availability stood at 92.2% in the first half compared with 87.9% in the first half of 2019.
In the context of the health crisis, the production for the region is down to 580 GWh over the period, compared to 608 GWh in the first half of 2019, due to the economic slowdown and the reduction in tourist numbers on the island.
In addition, an agreement was found on the conditions to renew the Terragen commercial power purchase agreement for a duration of five years.
Inclusion in the SBF 120
Following the quarterly review of the Euronext Paris indices, the Scientific Advisory Board of the Indices decided to include Albioma in the SBF 120 and CAC Mid 60 indices from 19 June 2020. Inclusion in this benchmark index, which covers the 120 largest stocks on the Paris stock exchange in terms of market capitalisation and liquidity, represents a new milestone for Albioma, which will be able to benefit from the positive effects of increased visibility amongst the financial community.
Solid liquidity position and resources in line with further development
Consolidated cash and cash equivalents, including security deposits, remain at a high level at €122 million. Despite the global economic downturn, the Group did not need to apply for any state aid implemented to support companies in difficulty (short-time work guaranteed loan). Albioma didn’t use its available credit lines and accelerated paiements to its suppliers. The Group still has sufficient resources to pursue its development.
Gross financial debt excluding IFRS16 is down to €914 million, compared with €938 million at 31 December 2019. It includes €821 million in project debt at 30 June 2020, compared to €834 million as at 31 December 2019.
Consolidated net borrowings amounted to €793 million, up by 3% compared with 31 December 2019 (€773 million).
2020 targets
The Group confirms its 2020 guidance for EBITDA (€200 to €210 million) and net income, Group share of €48 to €54 million (based on force majeure clause, excluding effects related to the coronavirus).
Next on the agenda: revenue for the third quarter of 2020 on 28 October 2020 (after trading).
About Albioma | Contacts |
An independent renewable energy producer, Albioma is committed to the energy transition thanks to biomass and photovoltaics. | Investor |
Albioma is listed on the Euronext Paris compartment B, is eligible for the deferred settlement service (SRD), PEA and PEA-PME plans and is included in the SBF 120 and CAC Mid 60. |
Appendices
Simplified consolidated income statement as at 30 June 2020
In millions of euros | First half 2020 | First half 2019 | Change % |
Revenue | 250.7 | 241.0 | +4% |
EBITDA | 100.4 | 84.5 | +19% |
Depreciation, amortisation and provision | (40.3) | (36.3) | -11% |
Operating income | 60.1 | 48.2 | +25% |
Net financial income | (16.7) | (14.2) | -18% |
Tax | (14.3) | (11.3) | -26% |
Effective tax rate | 33.3% | 34.0% | |
Consolidated net income | 29.1 | 22.7 | +28% |
Net income, Group share | 24.4 | 18.2 | +34% |
Consolidated earnings per share (in euros) | 0.79 | 0.60 |
Simplified consolidated balance sheet as at 30 June 2020
In millions of euros | 30/06/2020 | 31/12/2019 |
Assets | ||
Goodwill | 17 | 17 |
Intangible assets1 | 1,383 | 1,380 |
Other non-current assets2 | 32 | 37 |
Total non-current assets | 1,432 | 1,434 |
Current assets | 181 | 164 |
Cash and cash equivalents | 118 | 161 |
Total assets | 1,731 | 1,759 |
Equity and liabilities | ||
Shareholders' equity, Group share | 409 | 425 |
Non-controlling interests | 87 | 95 |
Total equity | 496 | 520 |
Current and non-current financial liabilities | 914 | 938 |
Debt IFRS 16 | 38 | 36 |
Other non-current liabilities | 129 | 121 |
Current liabilities | 154 | 143 |
Total equity and liabilities | 1,731 | 1,759 |
Simplified statement of consolidated cash flows as at 30 June 2020
In millions of euros | First half 2020 | First half 2019 |
Cash flow from operations | 102.0 | 86.4 |
Change in the working capital requirement1 | (39.3) | (32.0) |
Tax paid | (11.5) | (25.0) |
Net cash flow from operating activities | 51.3 | 29.4 |
Operating capex | (7.4) | (10.4) |
Free cash-flow from operating activities | 43.9 | 19.0 |
Development capex | (51.0) | (60.8) |
Other/Acquisitions/Disposals | (3.2) | (0.4) |
Cash flow from investing activities | (54.3) | (61.3) |
Dividends paid to Albioma SA shareholders | - | - |
Borrowings (increases) | 33.9 | 94.3 |
Borrowings (repayments) | (49.8) | (80.5) |
Cost of financial debt | (16.6) | (14.2) |
Other | 2.9 | (2.5) |
Net cash flow from financing activities | (29.6) | (2.9) |
Currency effect on cash | (3.0) | (0.5) |
Net change in cash and cash equivalents | (43.0) | (45.7) |
Opening cash and cash equivalents | 161.1 | 95.3 |
Closing cash and cash equivalents | 118.1 | 49.6 |
Notes
1. Negative change of €39 million in the working capital requirement, mainly due to the fact that part of the EDF receivables due were settled after 30 June 30 2020, as well as due to the increase in inventories and the acceleration of supplier payments in the context of the health crisis.
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