GreenVolt announces H1 profit up 17% YoY to €1.2M, as sales treble

  • Lusa
  • 7 September 2022

The company reported total revenues of €113.3 million, up 170%, earnings before interest tax depreciation and amortisation (EBITDA) of €36.8 million, up 248% and a net profit of €1.2 million, up 17%.

GreenVolt, a renewable energy company quoted on the Lisbon stock exchange, on Tuesday announced first-half consolidated profits up 17% on the year to €1.2 million, as its turnover almost trebled.

In its release, the company cited total revenues of €113.3 million, up 170%, earnings before interest tax depreciation and amortisation (EBITDA) of €36.8 million, up 248% and a net profit of €1.2 million, up 17%.

It also highlighted two bond issues in the period, totalling €85 million.

In operational terms, the company said, “results in the second quarter of 2022 were once again marked by the good performance of the residual biomass plants, as well as by the strengthening of investment in the segments of greatest growth potential, distributed generation and utility scale.

“However, during the period under review, there was a scheduled maintenance outage of the Tilbury residual biomass plant (TGP), which amounted to 18 days, that had a significant impact on this quarter’s numbers,” it added.

The company also revealed that its financial debt, at the end of June, totalled €290.1 million, while cash and cash equivalents lines were €279.3 million. In the second quarter, the company issued two bond loans totalling €85 million.

Among highlights of the third quarter were a capital increase, through a rights issue in the amount of €100 million, with a €5.62 price per share – “marked by strong demand” amounting to 186.8% of the offer – and in September GreenVolt’s first credit rating, BBB-, with a Stable Outlook, attributed by EthiFinance.

“The grade attributed by the European financial rating agency places the Company’s debt at an investment grade status, reflecting the confidence in the strategy outlined for the renewable energy segment, the moderate level of indebtedness necessary to implement its strategy and the solid shareholder structure,” it said.

GreenVolt operates “in the segment of electricity generation through biomass exclusively from waste” and “in Portugal, it owns five forest waste biomass plants, with an installed capacity of about 100 MW” while in the UK it has “a majority stake (51%) in TGP, a plant with about 42 MW that uses exclusively urban woody waste.” In this segment, GreenVolt recorded in the first half cumulative revenues of €90 million, up 115% on a year earlier.

In the solar photovoltaic and wind-power segment, where it is present “further up the value chain” in the “development and promotion phase” through “V-Ridium, SEO and others, and MaxSolar (35% owned)”, GreenVolt achieved total revenues of €8.3 million in the first half.

The group is also present “in the strategic segment of distributed renewable generation in the residential and commercial and industrial (C&I) segments, in Portugal and Spain”, with half-year revenues in this area of €15 million.

“”The results for the first half of 2022 are based on the residual biomass business unit and on the strengthening of investment in areas with the greatest growth potential, such as the development of wind and photovoltaic solar projects, as well as distributed generation,” said CEO João Manso Neto, quoted in the note. “Already during the third quarter, GreenVolt achieved two very important milestones: on the one hand, it successfully completed a capital increase of 100 million Euros, which will allow it to accelerate its growth plan and, on the other hand, it formalized the first sale of solar and wind assets, in Poland, to one of the largest European utilities, Iberdrola, which in terms of financial results, opens up good prospects for the second half of 2022.”