Economia
2023 FULL YEAR RESULTS
2023 FULL YEAR RESULTS
Very strong growth in EBITDA (+76%) and net income (29.6 million euros)
Normalised EBITDA objectives achieved, and capacity objectives exceeded
Setting 2024 objectives, confirming and detailing 2027 objectives
Strong growth in annual results for 2023, reaching or exceeding objectives
New records in 2023
Setting 2024 objectives
Confirmation and specification of 2027 objectives
Voltalia (Euronext Paris, code ISIN: FR0011995588), an international player in renewable energies, publishes today its consolidated annual results as of December 31, 2023. The accounts, for which audit procedures are underway, were approved by the Board of Directors at its meeting of March 28, 2024.
« Voltalia reaches or even exceeds its 2023 targets. This is the result of four years of commitment by the teams who, despite the emergence of Covid shortly after 2023 objectives setting, have enabled us to multiply plant capacity by 2.7, turnover by 3.3, EBITDA by 3.7 and net income Group share by 6.4, between 2019 and 2023. I would like to thank them warmly. Progress since 2022 is also strong, with EBITDA up 76%. We are announcing our 2024 objectives for capacity and EBITDA. We confirm and specify our 2027 objectives. We are also announcing new ESG objectives for 2027 and 2030 to increase the positive impacts of our Mission », comments Sébastien Clerc, Voltalia's CEO.
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Voltalia will comment on its annual results for 2023 and its short and medium-term plan at an information meeting to be held today at 8:30 a.m. Paris time.
The meeting will be broadcast as a live video webcast. Full connection details are available on our website https://www.voltalia.com/fr/investor-relations .
2023's t urnover amounts to 495.2 million euros, up +6% (at current and constant exchange rates). Energy Sales and Services account respectively for 60% and 40% of the 2023 turnover.
EBITDA comes to €241.1 million, up 76%. EBITDA margin rises sharply to 48.7%, from 29.4% in 2022, an increase of over 20 points. This increase is the result of concomitant improvements in EBITDA margin rates for Energy Sales and Services.
Normalised EBITDA , calculated at an average annual EUR/BRL exchange rate of 6.3 and with wind, solar and hydro production in line with the long-term average, comes to 271 million euros.
Net income , Group share, is at 29.6 million euros, compared with a loss of 7.2 million euros in 2022, benefiting from the sharp rise in EBITDA.
Production reaches 4.3 TWh, up +18%, representing the electricity consumption of 5.5 million people. The increase is mainly coming from higher capacity of power plants currently in operation. Operating capacity rises from 1.6 GW to 2.4 GW (+51%) thanks to the commissioning of SSM3-6 and Canudos in Brazil, Garrido in Portugal, Karavasta in Albania, Sud Vannier and Rives Charentaises in France, and numerous decentralized production units owned by Helexia in France, Belgium, Portugal, Spain, Italy, Romania, Hungary and Brazil. These commissioning reach a record volume of 795 MW, including 662 MW in the second half of the year. They make a significant contribution to 2023, without a full-year impact yet, especially for the 662 MW commissioned end of 2023.
Turnover from Energy Sales amounts to 299.3 million euros, up sharply by +23% (at current and constant exchange rates) thanks to higher electricity production and the contractual indexation of sales prices to inflation. Turnover mainly comes from the long-term power sales contracts, to which 98% of power plants in operation are linked.
This data illustrates Voltalia's investment strategy. In a market where there are speculative opportunities for electricity sales contracts much shorter than 20 years, and/or whose selling prices are not indexed to inflation, Voltalia continues to retain, after developing them, projects that meet its criteria, while selling other projects to third parties and providing construction and maintenance services for them.
EBITDA generated by Energy Sales rises sharply to 194.6 million euros (+36% at current and constant exchange rates). EBITDA margin stands at 65%, an improvement of 6 points, primarily driven by enhanced performance of the portfolio of power plants already in operation in 2022, by contributions from new plants, some of which benefit from high prices during the initial months of operation, and by the increasing relative weight of solar in the portfolio, which EBITDA margin is on average higher than wind's. In 2023, EBITDA would have been €34 million higher if solar, wind and hydro production had been at the long-term average .
2023 turnover from Services (internal and external services) comes to 601.9 million euros, up +71% (+72% at constant exchange rates).
EBITDA generated by the Services business, after elimination of internal margins, is multiplied by x6.8 to reach €62.1 million, giving an EBITDA margin of 32%, an improvement of 28 points compared with 2022.
items are well under control (+2%) despite very strong business growth.
amounts to 241.1 million euros, up 76% (at current and constant exchange rates).
amount to 103.7 million euros, up +40% (at current and constant exchange rates). The increase stems from: (i) 18 million euros from power plants commissioned and the full-year effect of power plants commissioned in 2022, and (ii) 9 million euros from depreciation and provisions mainly due to inventories of solar panels destroyed in a fire or depreciated with the fall in market prices.
amount to -18.2 million euros. The increase (x2.4) mainly comes from (i) charges associated with the exceptional regulatory measures adopted in France (infra-marginal tax) and Portugal to limit and offset the rise in electricity prices following the invasion of Ukraine, and (ii) a base effect arising from the reversal of a provision in 2022 on the sale of a building in Portugal.
The amounts to -57.9 million euros. The increase (+29% at current exchange rates and +32% at constant exchange rates) is mainly attributable to the debt of the power plants commissioned in 2023 and the full-year effect of those commissioned in 2022. Additionally, the Group's consolidated average overall interest rate on debt stands at 5.9% compared to 5.3% in 2022, primarily due to (i) increases in base rates on short-term drawdowns from revolving facilities and (ii) increases in swap rates on new project financings above historical averages. However, this latter increase is offset by the rise in unit selling prices for the corresponding assets. Credit margins, on the other hand, remain generally stable.
amounts to 36.3 million euros, this increase (x2 at current and constant exchange rates) is mainly explained by (i) the growth of the power plant portfolio and its improved profitability, accounting for 8 million euros, and (ii) the taxation related to projects sold during the fiscal year, amounting to 6 million euros
, is at 29.6 million euros, compared with -7.2 million euros in 2022, boosted by strong EBITDA growth.
The balance sheet at the end of 2023 reaches 3.8 billion euros, an increase of +26%.
Tangible and intangible fixed assets amounts to 2,771 million euros. The increase of +697 million euros (+33%) mainly reflects the growth in the portfolio of power plants in operation and under construction, with a capacity of 2,370 MW of power plants in operation by the end of 2023 (up 51%) and 480 MW of power plants under construction (down -53%).
increase by +158 million euros, close to the increase in other current and non-current liabilities (+135 million euros). The growth in other current and non-current assets is mainly explained by the increase in Services' activity, in particular Development and Construction.
has a strong position at 319 million euros. It decreases, down -17%, mainly due to the temporary consumption of cash from some power plant projects whose construction was accelerated before the finalization of their long-term loans, in order to take advantage of attractive electricity sales prices in Europe.
amounts to almost 1.3 billion euros, with an increase over the period mainly corresponding to the result of the year.
amounts to 1,909 million euros as of end of 2023, up +45% reflecting the growth of the power plant portfolio. The increase in financial debt in 2023 (up by +596 million euros) is lower than the fixed assets ones' (by 697 million euros), the balance being financed by the cash flows generated, and by part of the available cash, resulting in a 53% debt ratio . 74% of its outstanding financial debt is fixed rates, hedged or indexed to inflation. It is 67% denominated in euros and 27% in Brazilian real.
amounts to 492 million euros, up +38%. This increase is mainly due to (i) an increase in trade payables from power plant construction and operation activities and (ii) changes in the value of financial instruments (derivative instruments).
Residual duration of electricity sales contracts 17.1 years
Voltalia announces today that its long-term visibility has further improved. The average residual term of its power sales contracts has increased to 17.1 years at the end of 2023 (compared to 16.5 years as of end of 2022), with 8 billion euros of future revenues under contract.
New record for the portfolio of projects under development at 16.6 GW
Voltalia announces today that its portfolio of projects under development, intended to be retained or sold with construction and maintenance services, amounted to 16.6 GW at the end of December 2023, up 17%. This includes 1.2 GW of projects secured by long-term power sales contracts.
Update on the Brazilian power grid: favourable legal decision
As announced in September 2023, the grid operator capped production at certain power plants following the blackout on August 15. This reduced Voltalia's 2023 output by around 350 GWh, according to the regulator. Since the beginning of 2024, curtailment has been low.
Wind and solar associations, including Voltalia and others such as AES, Enel, EDPR and Neoenergia, filed a lawsuit seeking financial compensation from the grid operator. The plaintiffs were awarded almost full reimbursement of their production losses, but the grid has requested a review of this decision, and the rest of the proceedings could drag on for a long time. In this context, and even though Voltalia considers it likely, the recovery of its damages has not been entered in its 2023 accounts.
Capacity in operation and under construction stands at 2.85 GW at the end of 2023, 11% higher than the target of 2.6 GW announced in July 2019.
Normalised EBITDA stands at 271 million euros in 2023, reaching the target announced in September 2023. The difference between 241 million euros in reported EBITDA and 271 million euros in normalised EBITDA is due to: neutralization of the difference between actual electricity production and wind, solar and hydro the long-term average production for +34 million euros; and neutralization of the gap between actual and normalised 2023 exchange rates for -4 million euros.
In four years, capacity in operation and under construction has increased by a x2.7 factor (+28% p.a. CAGR ), Turnover by a x3.3 factor (+35% p.a.), EBITDA by a x3.7 factor (+44% p.a.) and net income, Group share, by a x6.4 factor (+59% p.a.).
These increases performed while the Group, in line with its ambition set in 2019, diversified geographically, with a secured capacity of 4.1 GW distributed as follows: 46% in Europe, 43% in Latin America and 11% in Africa.
Voltalia announces today new 2024 targets which anticipate a further increase in its capacity and EBITDA.
Voltalia confirms and specifies its operational and financial objectives for 2027, i.e.:
Voltalia would like to detail the sensitivity of the EUR/BRL exchange rate and the level of production:
Voltalia confirms its ESG objective for 2027, i.e.:
As a Mission-driven company, Voltalia continually strives to strengthen its commitments and positive impact on the environment and society. Today, the Company takes a new step by setting new ESG objectives to be achieved by 2027 and 2030:
PROSPECTIVE STATEMENTS
This press release contains forward-looking statements. These statements are not historical facts. These statements include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, services, product development and potential, and statements regarding future performance. These forward-looking statements may often be identified by the words "expect", "anticipate", "believe", "intend", "estimate" or "plan", as well as by other similar words. Although Voltalia's management believes that these forward-looking statements are reasonable, investors are cautioned that forward-looking statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond Voltalia's control, that could cause actual results and events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, among others, the uncertainties inherent in the evolution of the selling price of electricity produced by Voltalia, the evolution of the regulatory environment in which Voltalia operates as well as the competitiveness of renewable energies and other factors that may affect the production capacity or profitability of Voltalia's production sites as well as those developed or identified in Voltalia's public filings with the Autorité des marchés financiers including those listed in section 2. 2 "Risk Factors" of Voltalia's 2021 Universal Registration Document filed with the Autorité des marchés financiers on May 2, 2022. Voltalia undertakes no obligation to update any forward-looking information or statements, except as required by law.
Capacity under construction as of December 31, 2023
Power production as of December 31, 2023
C onsolidated income statement (unaudited)
Consolidated balance sheet (unaudited)
Cash flow statement
"Normalised EBITDA" of 2023 calculated with an average annual EUR/BRL exchange rate of 6.3 and wind, solar and hydro production corresponding to the long-term average.
Includes capacity of power plants in operation and under construction, and capacity of power plants under development already secured by a long-term power sales contract.
"Normalised EBITDA" of 2027 calculated with an average annual EUR/BRL exchange rate of 5.5 and wind, solar and hydro production corresponding to the long-term average.
Specified below in the 2027 and 2030 ESG objectives.
The average EUR/BRL exchange rate at which the 2023 accounts are close dis 5.40 versus 5.44 in 2022.
(Energy actually produced) / (energy that would be produced if power plants produced 100% of the time at 100% of their power).
Details in the appendices.
The load factors include the full power of SSM1 and 2 from the 2022 second half of year.
The above amounts are the sum of consolidated data, rounded to the first decimal place.
From 2022 onwards, the Group will publish a turnover no longer including proceeds from the disposal of tangible or intangible assets, which will be recorded under "Other current income and expenses".
In 2023, the Group updated its IFRS method for incorporating borrowing costs into the value of assets under construction. The necessary broadening of its scope has been treated as an error correction, without restatement of the comparable period.
Including the net income of equity affiliates of non-core activities
Net debt / (net debt + Equity)
"Normalised EBITDA" in 2023 calculated with an average annual EUR/BRL exchange rate of 6.3 and wind, solar and hydro generation corresponding to the long-term average.
Average annual growth rate.
Includes the capacity of plants in operation and under construction and the capacity of plants under development already secured by a long-term power purchase contract.
"Normalised EBITDA" estimated as of December 31, 2027 calculated with an annual average EUR/BRL exchange rate of 5.5 and wind, solar and hydro production corresponding to the long-term average.
Including the acquisition of a majority stake in Mosselbanken (55%).
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