The net income attributable to Greenvolt – Energias Renováveis, S.A. amounted to €1.2 million in the first half of 2022, an increase of 17% compared to the same period last year. This result was achieved in a period in which EBITDA showed a significant increase, as registered in terms of revenues.
Greenvolt’s EBITDA amounted to €36.8 million, more than tripling (a 248% growth) compared to the same period of the previous year, while revenues reached €113.3 million in the first half, representing an increase of 170%.
“The 2022 first half results are based on the residual biomass business unit and on the reinforcement of investment in areas with the greatest growth potential, such as the development of wind and photovoltaic solar projects, as well as distributed generation“, says João Manso Neto, CEO of Greenvolt.
During this first semester, a period marked by the war in Ukraine and the significant consequences on energy markets, namely on gas and electricity prices, the European Commission presented REPowerEU, a plan that aims to rapidly reduce European dependence on Russian fossil fuels.
This plan provides for a set of actions with a significant impact on the utility scale segment, namely through measures that simplify the licensing processes for solar and wind farm projects, as well as in the distributed generation segment, for which the EC presented a specific strategy for solar energy.
This European Commission plan thus confirms the goodness of Greenvolt’s strategic options focused on the development of photovoltaic and wind solar energy projects and decentralized consumption.
Biomass makes a strong contribution to the net income
The residual biomass business, which includes the five Greenvolt plants in Portugal, the structure costs and the TGP plant (in which Greenvolt holds a majority stake of 51%), was the one that contributed most to the consolidated results. However, the scheduled shutdown of the TGP plant for 18 days, had an impact.
Accumulated revenues from the biomass segment totalled €90 million in the first half of the year, which means an increase of 115% compared to the same period of the previous year. EBITDA excluding transaction costs amounted to €44.7 million, representing an increase of 221%.
In the second quarter, revenues amounted to €41.4 million, an increase of around 99% compared to the second quarter of 2021, while recurrent EBITDA (excluding transaction costs), in turn, amounted to around €19.4 million, which translates into a growth of approximately 161%. If TPG’s stoppage had not occurred, EBITDA in this quarter would have reached €22.8 million.
Pipeline of advanced-phase solar and wind projects amounts to 2.9 GW by the end of 2023
In the solar photovoltaic and wind renewable energy segment, the results reflect the preparation phase of the projects and the expansion of the activity, whose revenues from the asset rotation strategy are only generated by the sale process, as well as the operating costs incurred during the construction phase of the solar parks under construction in Portugal. However, this impact is mitigated for the first time with the contribution of assets in operation, totalling 45 MW.
Total segment revenues amounted to €8.3 million in the first half (€6.1 million in the second quarter) and EBITDA excluding transaction costs amounted to -€4.3 million, which shows an operational improvement during the second quarter of the year, period in which EBITDA was negative by around €1.4 million.
Greenvolt continued with its acquisition strategy, having acquired the LJG Green Source Energy Alpha (LIONS) photovoltaic solar park, in operation, in Romania, with 45 MWp of capacity, with remuneration guaranteed through a market component and a regulated component of green certificates until 2031, most of which have a sales contract established with the German EON.
During the third quarter, the first sale of COD assets was announced, with Greenvolt (holding 50% of this portfolio) reaching an agreement with Iberdrola for the sale of two wind farms (50 MW) and six solar farms (48 MW), for 155 million euros. Most of the financial impact of this transaction will be visible in the second half of 2022.
Greenvolt has under construction, in Portugal, the Tábua park, with around 48 MWp, and the Small Production Units (UPPs) of Figueira da Foz and Ródão, which total around 14 MWp, and 10 MWp under construction, which are part of the portfolio of around 200 MWp in partnership with Infraventus.
In total, in terms of project pipeline, this amounts to 6.7 GW in 10 geographies. The pipeline of advanced stage projects amounts to 2.9 GW by the end of 2023, an increase of 45% compared to the end of 2021.
Execution of distributed generation projects is accelerating
Greenvolt is also present in the strategic segment of renewable generation distributed in the residential and commercial and industrial (C&I) segments, both in Portugal and Spain.
The second quarter saw greater project execution, with the installation of 11.6 MWp having been completed (17.2 MWp in the first half). Until the end of June 2022, Greenvolt has signed installations and contracts totalling 94.9 MWp between Portugal and Spain.
Second quarter revenues amounted to around €9.2 million, with EBITDA being negative by around €1.2 million, given the phase of acceleration and expansion that the segment is currently in. In half-year terms, revenues stood at €15 million, while EBITDA was negative by €1.5 million.
