VOLTALIA (EPA:VLTSA) Voltalia : Q1 2018 revenues: double-digit growth at constant exchange rates.
Transparency directive : regulatory news
18/04/2018 18:51
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PRESS RELEASE
Q1 2018 financial information
April 18, 2018
Q1 2018 revenues: double-digit growth at constant exchange rates
Revenues up by +4% at EUR38 million in Q1 2018, up by +16% at constant exchange
rates
* +11% growth of Energy sales at constant exchange rates: improved revenues in
Brazil and very good operating performance in France
* +85% growth of Services revenues at constant exchange rates: strong
contribution of the construction of own assets
Voltalia (Euronext Paris, ISIN code: FR0011995588), an international player in
renewable energies, announces today its Q1 2018 revenues.
"For the first time, Voltalia's power generation reached 400 GWh in a first
quarter. Energy sales increased, mainly thanks to a strong operational
performance in France as well as increased installed capacities and high power
prices in Brazil. Meanwhile, revenues from services almost doubled. These
excellent operating achievements were offset by the appreciation of the euro
against most currencies, including the Brazilian real which was exceptionally
strong in the first half of 2017. Looking forward, new projects in France,
Egypt, Morocco, Brazil, French Guiana and Myanmar will contribute to both
Energy sales and Services revenues", comments Sébastien Clerc, Chief Executive
Officer of Voltalia.
Q1 2018 revenues
Change at
constant
In EUR million Q1 2018 Q1 2017 Change
rates(1)
Energy sales 26.8 27.7(2) (3)% +11%
Services 19.1 10.6 +80% +85%
Development, construction
and procurement 14.0 5.3 x2.6 x2.7
Operation & Maintenance 5.1 5.3 (4)% +1%
Eliminations(3) (8.0) (1.9) N/A N/A
Consolidated revenues 38.0 36.4 +4% +16%
(1) 2018 revenues calculated at 2017 exchange rates
(2) Q1 2017 revenues taking into account an extra seasonality effect, with no
impact on annual revenues regarding Brazil power sales (more details on page 2)
(3) Eliminations: services provided by the Services business for Group-owned
power plants are eliminated upon financial consolidation
Energy sales
Q1 2018 revenues totalled EUR26.8 million, with good operating performance
offset by the impact of a strong appreciation of the Euro against most
currencies, including the Brazilian real whose value in euros was 16% lower in
Q1 2018 versus Q1 2017.
At constant exchange rates, revenues are up by 11%, with:
- improved revenues in Brazil, with: (i) a positive effect of the commissioning
of Vila Acre (27 MW), (ii) less favourable wind conditions over the quarter
and (iii) mixed pricing effect with the positive impact of the contract
suspension strategy in Brazil balanced by the high comparison base set by
Vila Para's anticipated commissioning in Q1 2017, which allowed Voltalia to
sell electricity on the free market;
- higher revenues overall from Energy sales in Metropolitan France (+20%) and
in French Guiana (+23%), mainly thanks to better production.
Increased seasonality effect, with no impact on annual revenues: In line with
recommendations by the local regulatory agency (ANEEL), Voltalia now recognizes
revenues in Brazil based on actual monthly production, including adjustements
related to annual mechanisms required by local regulation. Until now, revenues
were based on monthly production adjusted for seasonal effect. From now on,
revenue seasonality will be greater, with no change on the annual revenues.
Services
In the first quarter of 2018, revenues from Services grew to EUR19.1 million,
almost doubling from EUR10.6 million in Q1 2017.
* The Development, Construction & Procurement business recorded revenues of
EUR14.0 million, 2.6 times their level in Q1 2017, thanks to a growing
contribution of Construction services. As announced in March, teams are
increasingly mobilized on the construction of projects owned by Voltalia such
as Carrière-des-Plaines (8.2 MW), Canadel (10.2MW) and Pagap (5 MW) solar
power plants in France, along with the Cacao biomass plant in French Guiana
(5.1 MW). They also carried out work for third party clients, including a
solar plant in the United-Kingdom and other projects in Italy and Tanzania.
* Revenues from the Operation & Maintenance business totalled EUR5.1 million,
stable at constant exchange rates. They included revenues in Voltalia's main
markets such as Brazil, Italy, Portugal and the UK. During the quarter, key
solar contracts for third-party clients have been renewed in historical
markets, confirming the Group's competitiveness.
Eliminations expanded in the quarter, reflecting the strategy to achieve
synergies through the in-house management of many services that were previously
outsourced. Around 44% of revenues of the Services business line came from
services provided internally.
Recent developments
Strong activity in France to build own new capacities
Voltalia is currently building 60.7 MW of new power plants in France (incl.
French Guiana), expected to be commissioned in 2018 and 2019, boosting the
total capacity in the country by end of 2019.
In addition, the Group was awarded new projects during the CRE IV national
tender in February 2018(4). The winning project of Talagard (5 MW) is located
in Salon-de-Provence, in the "South Region" area; this ground-mounted solar
installation will benefit from a 20-year sales contract. Voltalia has also been
awarded a 3 MW agri-voltaic project as part of the first tender for innovative
solar technologies.
Developments in Africa and Asia
In 2018, Voltalia has pushed further its development in Africa. After having
announced its first African project in October 2017, the Group announced in
February it has received authorizations for two hydropower plants (9.8 MW and
7.2 MW) in Morocco(5): the electricity produced will be sold under long-term
private power sale contracts, which are currently under negotiation with
corporate clients. In the meantime, Voltalia also signed its first energy
supply contract for a telecom client in Myanmar(6). MNTI has selected Voltalia
as energy service company (ESCO) for the energy supply of an initial batch of
171 telecom towers. Under a 10-year contract, Voltalia will continuously
provide electric power to sites (2 kW each), located in the Bago and Ayeyarwady
regions in Myanmar.
Perspective: confirmed ambitions for 2020
In 2018, total installed capacity is expected to increase slightly. Power
pricing should remain key in Brazil, with another positive impact from
long-term contract suspensions. However, it is widely expected that the
Brazilian currency will remain weak over the coming quarters.
In Services, teams will continue to be mainly mobilized on the Group's own
projects, with the launch of construction of a series of new projects, while
third-party clients' sales are to build up progressively.
In the medium run, the Group has a very good visibility over more than 90% of
the 1 GW of installed capacity targeted by end 2020. In addition to the 508 MW
reached at the end of the year 2017, 411 MW are either in construction or in
advanced development. These projects are located in Latin America (45%), Africa
(31%) and Europe (24%).
The remainder 10% will come from the pipeline of projects, which stands at 3.4
GW compared to 2.7 GW as of end 2016 (+26%).
(4) See press release dated February 13, 2018
(5) See press release dated February 15, 2018
(6) See press release dated February 21, 2018
Report on electricity production
Total energy production in Q1 2018
Total
by area and by energy Wind Solar Biomass Hydro Hybrid Q1 2018
in GWh
Brazil 342.6 0.8 8.1 351.5
France 34.3 1.2 35.5
French Guiana 1.1 2.7 6.5 10.4
United Kingdom 1.1 1.1
Greece 1.3 1.3
Portugal 0.2 0.2
Total 376.9 5.7 2.7 6.5 8.1 400.0
Installed capacity as of March 31. 2018
by area and by energy Wind Solar Biomass Hydro Hybrid 03/31/2018
In MW
Brazil 417.3 4.0 12.0 433.3
France 42.2 8.3 50.5
French Guiana 4.5 1.7 5.4 11.6
United Kingdom 7.3 7.3
Greece 4.7 4.7
Portugal 1.0 1.0
Total 459.5 29.8 1.7 5.4 12.0 508.4
Next on the agenda: General Meeting, May 24, 2018 at 11:00 am, at the Jones Day
auditorium, 2 rue Saint- Florentin, 75001 Paris
About Voltalia (www.voltalia.com)
* Voltalia is an international player in the renewable energy sector. The
Company produces and sells electricity generated from wind, solar, hydro and
biomass power plants; it owns a total installed capacity of 508 MW.
* Voltalia is also a service provider, assisting its investor clients active in
renewables at each project stages, from conception to operation and
maintenance.
* With more than 460 employees in 18 countries, over 4 continents. Voltalia is
able to act worldwide on behalf of its clients.
* Voltalia has been listed on the Euronext regulated market in Paris since July
2014 (FR0011995588 - VLTSA) and is a component stock of the Enternext Tech
40 index and the CAC Mid&Small index.
Voltalia
Chief Administrative Officer: Marie de Lauzon
Investor relations: invest@voltalia.com
+33 (0)1 44 63 14 40
Actifin
A. Commerot, acommerot@actifin.fr
Press contact: J. Jullia
+33 (0)1 56 88 11 11
www.voltalia.com