Greenvolt - Energias Renováveis (GVOLT) Q1 2024 earnings summary

Executive summary

• 1Q24 operating income rose 60% year-over-year to €101.6M, but EBITDA declined 21% to €18.7M due to seasonality, lower UK electricity prices, and no asset rotation gains.

• Strategic focus remains on expanding renewables, storage, and distributed generation, with strong pipeline and market alignment.

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

• KKR converted convertible bonds into equity, now holding 83.6% of shares, reinforcing capital structure and triggering a mandatory tender offer.

• Financial structure strengthened by refinancing all 1H24 debt and raising €140M in new corporate debt.

Financial highlights

• 1Q24 revenues: €101.6M (+60% YoY); EBITDA: €18.7M (-21% YoY); net income: -€1.5M (excluding discontinued operations).

• Utility-Scale EBITDA up 458% YoY to €11.8M; Biomass EBITDA down 43% to €8.6M; DG EBITDA at -€2.6M.

• Distributed generation revenues grew by €11M, with a 69–70% YoY increase.

• Liquidity position: €642M; unused guarantee lines: €367.6M.

• Net financial debt (pro-forma): €716.8M; net debt/EBITDA: 6.8x; cost of debt: 4.3%.

Outlook and guidance

• Management expects significant improvement in results for the remainder of 2024, with asset rotation gains anticipated and DG segment expected to reach break-even or positive EBITDA by year-end.

• Pipeline of projects probability-weighted at 8.8 GW, with 2.9 GW ready to build and at least 4.4 GW expected ready by year-end.

• Four asset rotation transactions expected to close in 2024, targeting 500 MW of asset sales.

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