Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Voltalia SA (VLTAF, Financial) achieved its target of 3.3 gigawatts in operation and construction, with 2.5 gigawatts already in operation, marking a 6% increase compared to 2023.
- The company reported a 20% increase in Energy Sales turnover, reaching EUR359 million, supported by the full-year effect of plants commissioned during 2023.
- Voltalia SA (VLTAF) signed 637 megawatts of new Power Purchase Agreements (PPAs), allowing the launch of 469 megawatts into construction, an 81% increase from 2023.
- The company achieved a competitive CapEx in 2024, with a 20% decrease in solar Levelized Cost of Energy (LCOE) and a 10% decrease in wind LCOE.
- Voltalia SA (VLTAF) has a strong cash position of EUR360 million and a robust operating cash flow of EUR258 million, supporting future growth.
Negative Points
- Voltalia SA (VLTAF) reported a net loss of EUR21 million, primarily due to curtailment impacts and a sharp drop in its equipment supply business.
- The company faced a competitive environment for signing new PPAs, which could pose challenges in securing future contracts.
- Curtailment issues in Brazil remain a concern, with a 10% curtailment expected in 2025, potentially impacting project returns and posing a risk of impairments.
- The EBITDA of EUR215 million was below the initial target of EUR255 million, affected by curtailment and foreign exchange impacts, particularly from the Brazilian real.
- The company's net debt increased to EUR1.943 billion, raising concerns about the sustainability of financing future investments primarily through debt.
Q & A Highlights
Q: Could you provide an update on the curtailment situation in Brazil and its potential impact on project returns?
A: Robert Klein, CEO, explained that the high curtailment in Brazil was mainly due to technical issues with transmission lines. He is confident that solutions will be found with the government and regulator. The curtailment has slowed, and there is political pressure to find a resolution. Klein believes compensation for past curtailments is likely, and future curtailments should not be structural.
Q: What are your early thoughts on the transformation plan, SPRING?
A: Robert Klein, CEO, stated that he is still in the diagnostic phase of the SPRING project, which aims to simplify the business model and governance. He plans to provide more detailed insights and an action plan by September.
Q: Can you provide details on the expected net debt for 2025 and the cash cost of interest?
A: Sylvine Bouan, CFO, mentioned that the net debt is expected to peak in 2024-2025 due to the volume of plants under construction. The cash cost of interest is around EUR130 million, covering all project and corporate debt.
Q: How is Voltalia addressing the profitability challenges in Brazil?
A: Robert Klein, CEO, acknowledged the challenges due to currency effects and curtailments. He believes a solution for curtailments will be found and highlighted the potential for refinancing projects when economic conditions improve. He also noted that all PPAs in Brazil are indexed to inflation, providing some protection.
Q: What is the contribution of Helexia to Voltalia's revenues and EBITDA?
A: Sylvine Bouan, CFO, stated that Helexia contributed approximately EUR50 million in turnover and EUR40 million in EBITDA for 2024. The business model shows strong growth, with significant capacity additions in 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
