Greenvolt - Energias Renováveis (GVOLT) Q1 2024 earnings summary

Executive summary

• Q1 2024 operating income rose 60% year-over-year to €101.6 million, but EBITDA fell 21% to €18.7 million, with a net loss of €1.5 million, mainly due to lower UK electricity prices, seasonality, and project delays.

• Strategic focus remains on expanding the pipeline, advancing storage projects, and maintaining asset rotation, with four advanced sales packages exceeding 400 MW in progress.

• Acquisition of Kent Renewable Energy, a 27 MW UK biomass plant, was signed in 2Q24 and is expected to close in 4Q24, positioning the company among the top five UK biomass producers.

• KKR converted €200 million in convertible bonds into equity, now holding 83.6% of the company and triggering a mandatory tender offer.

• Financial structure strengthened by KKR bond conversion, refinancing of all 1H24 debt, and €140 million in new corporate debt raised.

Financial highlights

• Q1 2024 revenues were €101.6 million (+60% YoY); EBITDA was €18.7 million (-21% YoY); net loss from continued operations was €1.5 million.

• Utility-Scale segment EBITDA rose 27% YoY to €11.8 million, while Biomass EBITDA fell 43% to €8.6 million; DG EBITDA was -€2.6 million.

• Liquidity position at end-Q1 2024 was €642 million, with €367.6 million in unused guarantee lines.

• Pro-forma net debt was €716.8–760 million; net debt/EBITDA was 6.8x; average debt maturity 3 years; cost of debt 4.3%.

• EBITDA margin dropped to 18.4% from 37.4% YoY.

Outlook and guidance

• Management expects significant improvement in results and profitability for the remainder of 2024, with asset rotation gains anticipated.

• Distributed Generation segment is expected to reach break-even or positive EBITDA by year-end.

• Pipeline is projected to reach 4.4 GW ready-to-build by year-end and 6.6 GW in 2025; Utility-Scale pipeline expanded to 8.6 GW.

• KKR's investment is expected to further strengthen the financial position and strategic capabilities.

• Focus remains on expanding the renewable portfolio, especially in storage and distributed generation.