Acciona (ANA) Q2 2024 earnings summary

Executive summary

• H1 2024 was challenging for renewables, with low Spanish power prices, high hydro/wind output, and weak demand reducing production and revenues, while Infrastructure and Nordex divisions delivered strong growth, offsetting weaker energy results; group revenues rose 24% to €8,772 million and EBITDA increased 7% to €990 million.

• Asset rotation strategy advanced, including the sale agreement for 175 MW hydro assets in Spain for €287 million, generating a capital gain of €170 million, and monetization of a 30% stake in the MacIntyre project for €335 million.

• Net financial debt increased to €8.2 billion, mainly due to high CapEx and investment activity.

• Attributable net profit fell 75% to €116 million, impacted by lower energy prices and the absence of positive non-recurring items from H1 2023.

• Investment grade credit rating maintained, though downgraded to BBB Low by DBRS Morning Star.

Financial highlights

• Energy EBITDA fell 39% to €419 million, with generation revenues down 17% to €749 million and total revenues down 24% to €1.3 billion year-on-year.

• Group attributable net profit reached €116 million, including €75.6 million from impairment reversal on hydro assets.

• Infrastructure EBITDA grew 42.9% to €331 million, with Construction EBITDA up 60% and margin at 7.6%; Nordex contributed €220 million to group EBITDA, with margin at 3.4% and order intake up 27%.

• Net investment cash flow for H1 was €1.7 billion, supporting 1.7 GW of new capacity installations and growth in infrastructure concessions.

• Dividend of €4.8884 per share approved, payable July 2024.

Outlook and guidance

• Full-year group EBITDA expected around €2 billion, split evenly between energy and other divisions, excluding capital gains.

• Targeting €200–300 million in annual capital gains, mainly from asset rotation, and 1.7 GW new capacity in 2024.

• H2 2024 expected to outperform H1, with higher power prices and normalized output; energy EBITDA for 2024 guided at around €1 billion.

• CapEx for 2025 to moderate to €1 billion, aiming to restore leverage ratios to normal levels by end-2025.

• Asset rotation and value crystallization remain priorities for H2 2024 and 2025.