Grenergy Renovables (GRE) Q3 2024 earnings summary

Executive summary

• Underwent transformation from a pure PV company to a PV and storage leader, focusing on hybridization and battery storage, notably Oasis de Atacama.

• Revenues reached €278 million, down 21% year-over-year, but would have grown 16% adjusted for investment accounting changes.

• EBITDA fell 48% to €53 million, mainly due to the absence of large asset disposals and the prior-year sale of the Belinchón plant.

• CapEx surged 61% to €419 million, with major focus on Oasis de Atacama and Spanish projects.

• Net profit for the period was €6 million, down from €74 million in 9M23.

Financial highlights

• CapEx totaled €419 million, with 50% allocated to Oasis de Atacama and 30% to Spain.

• Net debt increased to €975 million, with a net debt to EBITDA ratio of 18x, expected to decrease after asset rotations.

• Gross margin decreased 41% year-over-year; realized price per MWh fell 18%.

• Cash position at end of September was €67 million, with sufficient liquidity for 2025 CapEx plans.

• Equity stable at €345 million; tangible fixed assets rose 29% to €939 million.

Outlook and guidance

• Anticipates acceleration of revenue and CapEx in Q4, with exponential EBITDA growth expected as new plants come online.

• Sticks to three-year CapEx guidance of €2.6 billion (2023–2026), with annual CapEx near €1 billion for 2025–2026.

• Project finance for Oasis Atacama Phases 3 and 4 anticipated to close before year-end; asset rotation to accelerate leverage reduction.

• Merchant prices are expected to recover in 4Q24 due to rising gas prices.

• EBITDA guidance remains unchanged, with updates expected in early 2025 to include 2027 outlook.