Grenergy Renovables SA (XMAD:GRE) Q3 2024 Earnings Call Highlights: Navigating Challenges and ...

In This Article:

  • Revenue: EUR 278 million, 21% lower than last year.

  • EBITDA: EUR 53 million, down from EUR 102 million last year.

  • Energy EBITDA: Declined from EUR 41 million to EUR 30 million.

  • CapEx: EUR 419 million, increased by more than 60% compared to the previous year.

  • Net Debt: EUR 975 million, with a leverage ratio of 18 times.

  • Total Capacity: Increased to 950 megawatts.

  • Contracted Volumes: Increased by 16%, representing 74% of total electricity production.

  • Realized Price: EUR 44 per megawatt hour.

  • Cash Position: EUR 67 million at the end of September.

Release Date: December 03, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Grenergy Renovables SA (XMAD:GRE) is undergoing a significant transformation, focusing on hybrid PV and storage projects, which is expected to enhance value creation.

  • The company has signed a strategic agreement with CATL, a world leader in battery storage, ensuring a reliable supply for future projects.

  • Grenergy's CapEx has increased significantly, indicating strong investment in growth, with a focus on projects like Oasis Atacama.

  • The company has achieved 100% of its ESG targets for the third quarter, maintaining a top ranking in sustainability ratings.

  • Grenergy is expanding its geographical diversification, with significant growth expected in Europe and the US, enhancing its global footprint.

Negative Points

  • Revenues declined by 21% year-on-year, primarily due to the disposal of assets and lower energy prices.

  • EBITDA decreased significantly from the previous year, impacted by the absence of large asset disposals like those in 2023.

  • Net debt has increased to EUR 975 million, with a high leverage ratio, though the company expects to reduce this through asset rotations.

  • The company faces challenges in the US market due to regulatory uncertainties and potential trade issues affecting solar and battery imports.

  • Merchant prices have been low, particularly in Spain and Chile, affecting revenue from energy sales.

Q & A Highlights

Q: Can you detail which assets are you negotiating for potential deals before year-end, and what is your central scenario for Oasis Atacama? A: We have several options for asset rotation, including opportunities in Colombia, Argentina, and Mexico. For Oasis Atacama, we are considering selling a minority stake or even a full phase, given the strong market interest. We expect to have more news in the coming weeks. Regarding governance, it affects a small portion of our debt, and we are confident in managing it effectively.