2020 half-year results
27 July 2020
Sommaire
Recent highlights
- Strong rise in EBITDA (+19% yoy) and net income, Group share (+34% yoy)
- COVID-19
- Good resilience of the economic model and normal operation of the facilities
- Conversion to biomass of Albioma Le Moule (formerly Albioma Caraïbes) power plant: gradual resumption of work in Guadeloupe after a shutdown due to the confinement measures, leading to a delay of several months (commissioning planned for Q4 2020)
- Solar Power
- 20 MWp of PV projects awarded during the last governmental calls for tenders related to French non-interconnected areas (17 MWp) and continental France (2.9 MWp)
- Albioma entered the SBF 120 and CAC Mid-60 indexes as of 19 June 2020
1. Recent update | 2020 half-year results | 4 |
Albioma
An independent renewable energy producer
Committed to the energy transition through biomass and photovoltaic
Unique partnership for 25 years with the sugar industry to produce renewable energy from bagasse, the fibrous residue from sugar cane
The leading producer of photovoltaic energy in the French overseas territories
Located in mainland France, French overseas territories, Mauritius and Brazil
Key figures | |||||||
13 | ~ 1GW | ||||||
567 | |||||||
thermal power | installed | ||||||
experts | |||||||
stations | capacity end | ||||||
June 2020 | |||||||
2.6 M | €506 m | 3.8 TWh | ||||||||
people supplied | 2019 revenue | of electricity sold | ||||||||
with electricity | per year | |||||||||
120 | ||||||||||
100 MWp | €183 m | kWh/tc | ||||||||
exported to the | ||||||||||
installed | 2019 EBITDA | |||||||||
capacity in solar | grid in the | |||||||||
overseas | ||||||||||
plants | ||||||||||
territories | ||||||||||
2. Strategic positioning | 2020 half-year results | 6 |
~ 1 GW installed capacity across the world
Of which 841 MW thermal biomass and 100 MWp solar1
West Indies and French Guyana - 216 MW
Guadeloupe, Martinique, French Guyana
182 34
MW MWp
Metropolitan France - 33 MW
and the restof Europe
33
MWp
Strong market shares (2019)
46 % of power generated on Reunion Island
40 % in Mauritius
26 % in Guadeloupe
19 % in Martinique
Indian Ocean - 500MW
Reunion Island,Mauritius, Mayotte
Brazil - 193 MW
193 | 466 | 34 |
MW | MW | MWp |
1As of June 2020
2. Strategic positioning | 2020 half-year results | 7 |
Liquidity and shareholder structure
Albioma now part of SBF 120 index
Liquidity | Shareholder structure at 30 June 2020 | ||||
Euronext | o ther | Dark | OTC | Total | |
platefo rms | Pool | ||||
Number of traded shares | |||||
Daily average - last 6 months | 61,648 | 37,136 | 3,495 | 51,112 | 153,391 |
Daily average - last 12 months | 46,550 | 30,512 | 2,682 | 36,422 | 116,166 |
in millions of euros | |||||
Daily average - last 6 months | 1,930 | 1,167 | 111 | 1,625 | 4,834 |
Daily average - last 12 months | 1,346 | 871 | 78 | 1,073 | 3,368 |
Source: Bloomberg - 17 July 2020
Number of ordinary shares | 31,601,983 |
in issue - 20 July 2020 | |
2. Strategic positioning | 2020 half-year results | 8 |
Three-pronged strategy
1
2
3
Act for the energy transition in French overseas territories
Global rollout of Albioma's expertise
Accelerate the development in solar PV
2. Strategic positioning | 2020 half-year results | 9 |
Act for the energy transition in French overseas territories
100% biomass target in our plants
- Substitution of biomass for coal in plants which recover bagasse
- Give priority to local biomass, while avoiding conflicting uses (cane straw, forest residues, etc.) and contributing to a circular economy (green waste, etc.)
- Use of traceable and renewable imported biomass to top up
Continuing the rise in
renewable energy
production
- Production of reliable energy, guaranteeing security and stability of the grid from 100% renewable sources
- Solar energy storage projects and 100% storage projects in non interconnected areas aiming to counter the intermittent nature of production
Make use of solid recovered fuels (SRF)
2. Strategic positioning | 2020 half-year results | 10 |
Global roll-out of Albioma's expertise
From 2000 up until today
Mauritius
- 40% of the electricity produced on the island today
- 3 plants currently in operation
- 1 project under development
Brazil
- The world's leading sugar cane producer (700 Mtp)
- Use of bagasse for energy production: 8.5% of energy production in Brazil comes from biomass (mainly bagasse)1
- 3 plants currently in operation
In the medium term
Continuation of the development in Brazil
- Capitalise on our experiences
- 1 project currently under construction: Vale do Paraná
Continued expansion
- Geographical approach: supporting existing sugar- refining partners or exploiting or developing new projects in Latin America, South-East Asia...
- Project approach: developing other sources of renewable energies
1Source : Empresa de Pesquisa Energética - http://www.epe.gov.br
2. Strategic positioning | 2020 half-year results | 11 |
Accelerate and strengthen solar power development
Positioning on
targeted and
profitable segments
- Consolidate our leading position in French overseas markets and strengthen it in mainland France
- Reference target segments: small and medium rooftops, storage, onsite consumption, land with no conflict of use
Innovative solutions
- Positioning on energy storage/network service
- 7.4 MW / 14.9 MWh project winner of the October 2019 CRE call for tenders in Mayotte
- Winner of the CRE tender for solar PV projects with storage in the French overseas departments
A very promising
market
- Increase in the size of projects eligible to energy purchase obligation rates from 100 kWp to 300 kWp
- Visibility on tender volumes: approx. 270 MWp between 2019 and 2020 in the non- interconnected areas and 2.2 GWp in metropolitan France
- Consolidation of our portfolio through selective acquisitions
2. Strategic positioning | 2020 half-year results | 12 |
At least 80 % renewable energy target by 2023
In line with French "Climate plan" objectives
<20 %
>80 %
67 %
36 %
33 %
64 % | 2023 target | |||||
2019 | ||||||
2013 | Renewable | Fossil | ||||
67% of our energy mix from renewable energy sources
Confirmation of the continued increase of the renewable share
Note: Aggregate of fully consolidated companies. Renewable energy (electrical and steam) as a share of total production.
2. Strategic positioning | 2020 half-year results | 13 |
Strong extra-financial performance
59/100
ESG score
1
Integrated to
Gaïa Index
75 %
Independance
Achievement of a robust ESG performance (+9 points vs 2018)
Top 20 of the sector (among 65 companies evaluated)
Rewards the best performers from a
panel of 230 SME's and MidCaps
Thorough governance practices sustained by an independent and dynamic Board of Directors
Some of our environmental and social initiatives
Development and solar energy in Madagascar, by providing solar lighting for the Akamasoa village in Madagascar
Commitment to the preservation of biodiversity in Mauritius, by cleaning the Riambel beach reknowned to be a passage way for turtles and dolphins
Preservation of water ressources in Guadeloupe, by improving the control and treatment of industrial and rainwater
1. Vigeo Eiris - December 2019
2. Strategic positioning | 2020 half-year results | 14 |
Main impacts of the Covid-19 sanitary crisis
- Good resilience of the activity and normal operation of the facilities thanks to continuity plans & respect of sanitary measures
- Shutdown of the conversion to biomass worksite of Albioma Le Moule 3 (formerly Albioma Caraïbes) in Guadeloupe during the lockdown period
- Gradual resumption of work since May
- Force majeure clause claimed with EDF in order to compensate for the unavailability of the plant due to the extension of the conversion shutdown period
- Restart of the plant delayed by several months - expected Q4 2020
- Construction of photovoltaic plants were halted during the lockdown period and were able to resume since May
- Direct financial cost of the measures taken during the sanitary crisis amounts to c. €2 million (purchase of protective equipment/masks and reorganisation of the teams to comply with the health measures)
- No use made of the French State support measures (short-timework, "guaranteed loan"...), increase in stock to prevent fuel shortage, accelerated payment to suppliers
- Cash position at 30 June 2020: €118 million
- No use made of the available credit lines (RCF line fully available on 30 June 2020: €60 million)
3. Operational performance | 2020 half-year results | 16 |
France - Thermal Biomass - operations
Plant availability
85.0% | 86.7% |
Power generation
975 | 984 |
In GWh
H1 2019 | H1 2020 |
H1 2019 | H1 2020 |
- High availability of our plants in the context of the COVID-19 crisis
- Works for the conversion to biomass of Albioma Le Moule 3 (formerly Albioma Caraïbes) were delayed due to lockdown measures and travel restrictions (started 1 March 2020) - restart of the plant expected Q4 2020
3. Operational performance | 2020 half-year results | 18 |
France - Thermal Biomass - development
Conversion to biomass of our plants in Overseas France
-
Substitution of 100% of the coal used by the Albioma Le Moule 3 (formerly Albioma Caraïbes) plant by 2020
- Net investment of c. €80 million (increased because of covid-19) - Major contribution to the energy transition of Guadeloupe (Guadeloupe's renewables mix to increase from
20% to 35% and reduction of over 85% in the plant's CO2 emissions - Works progressed well in 2019 (Building of wood pellets storage domes) / suspended in March due to lockdown measures. Restart of the work since May 2020 - new commissioning date expected for Q4 2020
Port of Jarry, Guadeloupe | Le Moule plant site |
3. Operational performance | 2020 half-year results | 19 |
France - Solar Power
Number of equivalent full power hours
618 | 583 |
Power generation
61 | 62 |
In GWh
H1 2019 | H1 2020 |
H1 2019 | H1 2020 |
- Slight increase in production
- New plant commissioning including two new plants with storage capacities in Sainte-Rose, Guadeloupe (3.3 MWp in June 2019) and at Stade de l'Est in Saint-Denis, Reunion (1.3 MWp in April 2020)
- Lower solar irradiation in French Guyana and deteriorated performance on Reunion Island and Spain
- Development
- Interruption of the construction works of new plants during the lockdown period
- 20 MWp of PV projects awarded though governmental call for tenders in France
3. Operational performance | 2020 half-year results | 20 |
Mauritius
Plant availability
87.9% | 92.2% |
Power generation
608
580 In GWh
H1 2019 | H1 2020 |
H1 2019 | H1 2020 |
- Excellent performance of the installations in 2019 and postponement of some maintenance shutdowns
- Decrease in call rates and production due to the slowdown related to the economic crisis
- 5-yearextension agreement has been reached with the Central Electricity Board (CEB) related to Terragen's Power Purchase Agreement
Note: share of net income from these entities included in the Group's operating income (EBITDA and EBIT) using the equity method since 2014
3. Operational performance | 2020 half-year results | 22 |
Brazil
Power generation
130 | 131 | In GWh |
Energy efficiency
56 | 60 |
In kWh/tp
H1 2019 | H1 2020 |
H1 2019 | H1 2020 |
- Very good operational performance of the plants
- Stable production despite a slightly lower volume of cane compared to H1 2019 due to heavy rains impacting cane crushing
- Optimization of production during intercrop period, in particular for Codora that restarted in early March 2020 thanks to the remaining bagasse from 2019
- Average sale price is up (R$ 265/MWh in H1 2020 vs R$ 249/MWh in H1 2019)
- More than 90% of sales are secured with medium and long term contracts over the next 5 years
3. Operational performance | 2020 half-year results | 24 |
Ongoing projects in Brazil
Project under construction
Vale do Paraná
40% of capital held by Albioma
48 MW installed eventually
25-year contract (start in 2021)
Commissioning expected H2 2020 - slightly
delayed due to the Covid-19 crisis
3. Operational performance | 2020 half-year results | 25 |
Income statement by region/ business
(In € millions) | H1 2020 | H1 2019 | Var | |
Published | 20/19 | |||
France - Thermal biomass | 217.3 | 204.7 | +6% | |
France - Solar | (1) | 24.1 | 24.8 | -3% |
Brazil | 8.5 | 8.9 | -4% | |
Holding & Others | 0.8 | 2.6 | -69% | |
Turnover | 250.7 | 241.0 | +4% | |
France - Thermal biomass | 82.6 | 64.5 | +28% | |
France - Solar | (1) | 17.8 | 18.0 | -1% |
Brazil | 2.2 | 3.0 | -26% | |
Holding & Others | (2.2) | (0.9) | -156% | |
EBITDA | 100.4 | 84.5 | +19% | |
Consolidated net income (Group | 24.4 | 18.2 | +34% | |
share) | ||||
- including Spain and Italy
- Additional contributions related to IED compliance riders signed with EDF
-
Good functioning of the thermal plants during the sanitary crisis
- some maintenance shutdowns were postponed - Solar: production remained stable year-on-year. New plant commissioning in H1 2020
- Brazil: Strong decrease of the BRL vs EUR FX rate. Good performances of the existing plants
4. Financial results | 2020 half-year results | 27 |
Revenues up 4% over H1 2019
4. Financial results | 2020 half-year results | 28 |
EBITDA €100.4 million up 19% over H1 2019
incl. c. €2m of
direct costs related
to the Covid-19
sanitary crisis
4. Financial results | 2020 half-year results | 29 |
Income statement at 30 June 2020
(In € millions) | H1 2020 | H1 2019 |
Published | ||
Revenues | 250.7 | 241.0 |
EBITDA | 100.4 | 84.5 |
Depreciation, amortization, provisions & others | (40.3) | (36.3) |
Operating income | 60.1 | 48.2 |
Net financial result | (16.7) | (14.2) |
Tax | (14.3) | (11.3) |
Effective tax rate | 33.3% | 34.0% |
Consolidated net income | 29.1 | 22.7 |
Net income, Group share | 24.4 | 18.2 |
Consolidated earnings per share (in euros) | 0.79 | 0.60 |
Var 20/19 +4% +19% -11%+25% -18% -26%
+28% +34%
4. Financial results | 2020 half-year results | 30 |
Significant level of cash as of June 2020
4. Financial results | 2020 half-year results | 31 |
A sound balance sheet
- Decrease in gross debt : new debt drawings related to the financing (conversion to biomass, solar PV) of new projects compensated by debt reimbursements
- Residual life of 11 years
- Group average interest rate of 3.1% (of which France 3.1% and Brazil 7.8%)
- 85% of debt covered or at fixed rates
- Non-recourseproject debts other than Brazil debt (€19m) and projects under construction
(In € millions) | 30 June 2020 | 31 Dec 2019 | Change |
Project debt | 821 | 834 | -2% |
Corporate debt | 93 | 104 | -11% |
Total gross debt (excl. IFRS 16) | 914 | 938 | -3% |
Cash | (118) | (161) | -27% |
Guarantee deposits and equivalents | (3) | (4) | -9% |
Total net debt | 793 | 773 | 3% |
Net debt / LTM EBITDA | 4.0x | 4.3x | |
Gearing (1) (2) | 160% | 148% |
- Excluding IFRS 16 restatements
- Net debt / Equity
4. Financial results | 2020 half-year results | 32 |
2020 objectives confirmed
2019 | 2020 | |
EBITDA | 183 | 200-210 |
(in € millions) | ||
Net income (Group | 44 | 48-54 |
share) |
(in € millions)
- Restart of Albioma le Moule 3 scheduled Q4-2020 and compensation of delays based on force majeure clause
- Excluding potential new effects related to Coronavirus
4. Financial results | 2020 half-year results | 33 |
Investments since 2013 and development outlook
In € millions
New capacities | ||
Galion 2 | Solar PV | |
Combustion | ||
Turbine (Reunion | 120 | |
Island) | ||
Existing
Conversion to
biomass of Albioma
Le Moule 3
Brazil | 70 |
140 |
International
Solar PV -
New Development
Existing capacities
Biomass
Conversion to biomass of the other plants
1 300 - 1 500
Existing | 275 |
IED | |
275 |
2013
880
2019 | 2023 |
2013 - 2019 | 2020 - 2023 |
€880m of committed investments | €450m-650m of new investments to secure |
5. Outlook | 2020 half-year results | 35 |
Why invest in Albioma?
A major player at the heart of the energy transition
A future pure player in renewables
A continued growth sustained by an
investment program of €450m to €650m by 2023
A dividend growth policy with a distribution objective of around 50% of net income (Group share), excluding exceptional items
5. Outlook | 2020 half-year results | 36 |
Thank you
for your attention
Follow us on | and on www.albioma.com | |
5. Outlook | 2020 half-year results 37 | |
Cash flow statement at 30 June 2020
(In € millions) | H1 2020 | H1 2019 | |
Published | |||
Cash flow from operations | 102.0 | 86.4 | |
Change in net working capital | 1 | (39.3) | (32.0) |
Tax paid | (11.5) | (25.0) | |
Net cash flow from operating activities | 51.3 | 29.4 | |
Operating capex | (7.4) | (10.4) | |
Free cash flow from operations | 43.9 | 19.0 | |
Development capex | (51.0) | (60.8) | |
Others / Acquisitions / Disposals | (3.2) | (0.4) | |
Cash flow from investing activities | (54.3) | (61.3) | |
Dividends paid to Albioma SA shareholders | - | - | |
Borrowings (increase) | 33.9 | 94.3 | |
Borrowings (repayments) | (49.8) | (80.5) | |
Cost of financial debt | (16.6) | (14.2) | |
Other | 2.9 | (2.5) | |
Net cash flow from financing activities | (29.6) | (2.9) | |
Currency effect on cash | (3.0) | (0.5) | |
Net change in cash and cash equivalents | (43.0) | (45.7) | |
Opening cash position and cash equivalents | 161.1 | 95.3 | |
Closing cash and cash equivalents | 118.1 | 49.6 |
- Variation in Net Working Capital, including the lag to July of payments of receivables, the increase in raw material stocks and spare parts inventories and the acceleration of payments to suppliers in the context of the sanitary crisis,
6. Appendix | has a negative impact on Free cash flow of -€39 million. | 2020 half-year results | 39 |
Balance sheet at 30 June 2020
ASSETS (In € millions) | 30 June 2020 | 31 Dec 2019 |
Goodwill | 17 | 17 |
Intangible assets & Property, plant and equipment | 1,383 | 1,380 |
Other non-current assets | 32 | 37 |
Total non-current assets | 1,432 | 1,434 |
Current assets | 181 | 164 |
Cash and cash equivalents | 118 | 161 |
Total ASSETS | 1,731 | 1,759 |
EQUITY & LIABILITIES (In € millions) | 30 June 2020 | 31 Dec 2019 |
Shareholders' equity, Group share | 409 | 425 |
Non-controlling interests | 87 | 95 |
Total equity | 496 | 520 |
Current and non-current financial liabilities | 914 | 938 |
Debts related to the right of use assets (IFRS 16) | 38 | 36 |
Other non-current liabilities | 129 | 121 |
Current liabilities | 154 | 143 |
Total LIABILITIES | 1,731 | 1,759 |
6. Appendix | 2020 half-year results | 40 |
Long-term debt matched to business profile
Existing debt repayment profile1
Residual life of 11 years
In € millions
104 | |||||||||||||||||||||||||||
138 | 11 | ||||||||||||||||||||||||||
8 | |||||||||||||||||||||||||||
85 | 5 | ||||||||||||||||||||||||||
102 | 96 | 92 | 85 | ||||||||||||||||||||||||
53 | 80 | 80 | |||||||||||||||||||||||||
823 | 792 | 730 | |||||||||||||||||||||||||
705 | |||||||||||||||||||||||||||
653 | |||||||||||||||||||||||||||
607 | |||||||||||||||||||||||||||
563 | 562 | 581 | |||||||||||||||||||||||||
533 | 539 | ||||||||||||||||||||||||||
471 | 476 | 509 | |||||||||||||||||||||||||
462 | |||||||||||||||||||||||||||
438 | |||||||||||||||||||||||||||
368 | 303 | ||||||||||||||||||||||||||
238 | |||||||||||||||||||||||||||
188 | 147 | 108 | 80 | 61 | 44 | ||||||||||||||||||||||
32 | |||||||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | ||
Project debt | Corporate debt | ||||||||||||||||||||||||||
Note
1. Financial liabilities, excluding bank overdrafts, accrued interest and borrowing costs and excluding new projects
6. Appendix | 2020 half-year results | 41 |
Albioma's historical business model
Leading player in the bagasse high-efficiency cogeneration industry
Operator of high-efficiency | Additional fuel outside the crop period | |
Historically: coal | ||
cogeneration plants providing steam | ||
Progressive substitution of | ||
to the sugar mill and power to the grid | ||
Sugarcane | biomass for coal | |
1 ton |
Client/Partner | Client | |||
Steam | ||||
450 kg | ||||
Sugar | Electricity | Cogeneration | Electricity | Electricity |
30 kwh | 120 kwh | |||
refinery | plant | network |
Sugar or bioethanol | Bagasse |
115 kg | 300 kg |
6. Appendix | 2020 half-year results | 42 |
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Albioma SA published this content on 27 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2020 17:15:03 UTC