Albioma : 2020 annual results
Press release
Paris La Défense, 4 March 2021
2020 annual results
Net income, Group share up sharply: +25%; Significant growth in
EBITDA: +13%
Securing future growth: 100% biomass conversion and extension of
Albioma Bois-Rouge confirmed, 40 MWp won in photovoltaics and first
steps in geothermal energy
Structural commitments in favour of the energy transition: an
energy mix of over 90% in renewables by 2025 and almost 100% by
2030
Albioma's Board of Directors, chaired by
Frédéric Moyne, met on 4 March 2021 and approved the Group's
consolidated financial statements for the 2020 financial year.
“In 2020 we generated very strong results, with
EBITDA up 13% and net income, Group share posting a sharp rise of
25%. These results are thanks to the hard work of Albioma’s teams
who I would like to thank and congratulate for their commitment
throughout the health crisis.
During the year, and despite the difficult
context, we also finalised the biomass conversion project of our
ALM3 plant in Guadeloupe and commissioned our fourth bagasse plant
in Brazil according to schedule.
Lastly, we signed various projects in line with
our strategy which will contribute significantly to growth over the
coming years: conversion and extension of the contract for the
Bois-Rouge power plant (completely discontinuing coal) in Reunion
Island, winning 40 MWp in solar power and first steps in geothermal
energy.
All of these measures make us confident in our
ability to meet the new objectives that the Group has set for 2025
and 2030: respectively over 90% and nearly 100% renewable energy in
our energy mix,” commented Frédéric Moyne, Chairman and Chief
Executive Officer of Albioma.
Consolidated key figures for 2020
In
millions of euros (audited figures) |
2020 |
2019(reported) |
Change % |
Revenue |
506.7 |
505.7 |
+0% |
EBITDA |
206.4 |
182.9 |
+13% |
Net income |
64.4 |
54.2 |
+19% |
Net income (Group
share) |
55.3 |
44.1 |
+25% |
Revenue amounted to €506.7 million, stable
compared with the previous year. Stripping out the impact of
changes in fuel prices (-€13 million) and the currency effect
related to the decline of the Brazilian real (-€7.1 million), it
was up by 4%.
EBITDA for the year rose by 13% to €206.4
million thanks to:
- the good operational performance of the power plants in all
regions despite the COVID-19 pandemic,
- the full-year effect of the latest riders in relation to the
investments to bring the thermal power plants into compliance with
the IED Directive,
- the biomass conversion of unit 3 of Albioma Le Moule (ALM 3),
since last November,
- the increase in the average sales price in Brazil due to new
contracts coming into force.
Net income, Group share was up 25% to €55.3
million.
Highlights
Operations:
§ COVID-19: good management of the
health crisis; normal functioning of the thermal and solar plants
thanks to the mobilisation of the teams
Development:
- Conversion of French Overseas plants to 100% biomass:
- Restart of unit 3 of Albioma Le Moule (ALM3) in Guadeloupe,
after conversion works
- Signing of a contract for Albioma Bois-Rouge (ABR) on Reunion
Island for the conversion and the extension of the electricity
sales agreement until 2043: complete discontinuation of coal in the
plant
- Obtaining 40 MWp of solar power projects during the last calls
for tenders from the French Energy Regulator (Commission de
Régulation de l’Énergie - CRE)
- In Brazil, commissioning of the Group’s fourth power plant,
Vale Do Paraná (48 MW)
- First steps in geothermal energy: acquisition of a plant in
Turkey, Gümüşköy (13 MW)
Financing & stock market:
- Issue of the first “Sustainability-Linked Euro PP”
- Listing: inclusion in the SBF 120 and CAC Mid 60 indices
France
Thermal biomass
Very good availability of the thermal power
plants
Despite the COVID-19 context, and excluding the
shutdown of ALM3 due to conversion work, the availability of the
thermal power plants in France reached 91.7% in 2020 (compared with
88.2% in 2019).
Total electricity production from the thermal
plants in Overseas France was down slightly to 1,940 GWh compared
with 2,061 GWh in 2019: excluding ALM3, production was stable
compared with 2019.
EBITDA for the business totalled €162.3 million,
up 18% compared with 2019 (€137.4 million), thanks to the full-year
effect of the latest riders in relation to investments to bring the
thermal plants in Overseas France up to IED standards and the good
availability of the plants.
Construction and development of projects
100% biomass for unit 3 of Albioma Le Moule
(ALM3) in Guadeloupe
Unit 3 of the Le Moule plant in Guadeloupe
restarted on 23 November after work was carried out to convert the
plant to 100% biomass. The project took longer than initially
planned due to the health crisis. This conversion will allow
emissions to be reduced by more than 265,000 tonnes of CO2
equivalent (a net reduction of around 87% compared with coal), and
will thereby increase the renewable portion of Guadeloupe's energy
mix from 20% to 35%. Since its commissioning, 13 GWh was produced
at the end of the year, exclusively from biomass.
Green light for the 100% biomass conversion of
the Albioma Bois-Rouge power plant
On 3 December 2020, the CRE approved the
compensation from the signing of a rider to the power purchase
agreement signed by EDF for the biomass conversion of the
Bois-Rouge plant on Reunion Island. Conversion work will begin in
2021 so that the plant can operate exclusively on biomass before
the second half of 2023. Priority will be given to
locally-available biomass resources (bagasse, forest wood, lagging
waste, etc.) alongside imported traceable (in accordance with the
EU timber regulation) and sustainable (FSC and PEFC certification
required from our suppliers) biomass, in the form of wood pellets.
Eventually, the conversion will increase the renewable portion of
Reunion Island's energy mix from 35% to 51% and will reduce
greenhouse gas emissions by some 640,000 of CO2 equivalent per
year, that is an 84% decrease of direct emissions compared with the
current operation of the plant.
The CRE’s assessment also provides for an
investment budget necessary to extend by 15 years the operation of
the Group’s two oldest units (ABR1); the power purchase agreement
was therefore extended from 2027 to 2043 for ABR1.
Solar power
Slight increase in production and commissioning of new
plants
Electricity production from the solar business
amounted to 125 GWh, compared with 121 GWh in 2019, up 3%. This
mainly stems from the commissioning of new plants (in Reunion
Island and Mayotte) which offset the lower level of sunshine,
particularly in French Guiana and southern Europe.
EBITDA for the business totalled €34.8 million
in 2020 compared with €36.3 million in 2019.
Project development
40 MWp of Solar power projects secured in
2020
The Group continued to develop its solar power
business, winning 40 MWp of projects across all regions. In
particular, it won an aggregate capacity of 24.6 MWp in the
governmental call for tenders in areas not connected to mains
electricity. This capacity is distributed across 44 projects (25
with storage and 19 without storage) located in Reunion Island,
Mayotte, French Guiana, Martinique and Guadeloupe. Construction of
these projects is scheduled to start in 2021. In mainland France,
the Group also won aggregate capacity of 12.2 MWp during recent
calls for tenders, distributed across 25 projects (in the
Auvergne-Rhône-Alpes, Provence-Alpes-Côte-d’Azur and Occitanie
regions). Construction of these projects began in 2020 with
commissioning scheduled for 2021 and 2022.
2021 Finance Act: changes in the regulatory
environment
Article 54 sexies of the 2021 Finance Act voted
on 16 December 2020 provides for the possibility of revising
tariffs downwards for solar power purchase agreements signed
between 2006 and 2010. The implementing regulations specifying the
level of the reduction and the terms are not available to date. For
the Group, the facilities concerned represent 57 MWp and
approximately 6% of revenues. As an indication, a 10% reduction in
tariffs would lead to a loss in EBITDA of some €2 to €3 million in
a full year. Impairment of the assets concerned could also prove
necessary.
Brazil
Thermal biomass
Good operational performances from the
plants
Production in Brazil was down to 373 GWh after
reaching 391 GWh in 2019.
EBITDA reached €12 million in 2020 compared with
€10.7 million in 2019, thanks to a positive price effect and
non-recurring financial income of €2.4 million due to the approval
of the judicial recovery plan of our sugar partner adjacent to our
Rio Pardo plant, and despite a sharp decline in the real.
Project development
Commissioning of the Group’s fourth 100% bagasse
power plant
On 25 December 2020, the 100% bagasse Vale do
Paraná plant was commissioned. The biomass-fuelled cogeneration
unit, located in the town of Suzanápolis in São Paulo state, is the
Group's fourth plant located in Brazil. The new plant is covered by
a long-term, inflation-indexed sales agreement that secures
electricity sales of 120 GWh until 2046. This is the first
Brazilian project for which the Group handled the construction and
network connection works as well as the subsequent operation joint
venture between Albioma and the Vale do Paraná sugar mill. With an
installed capacity of 48 MW, the new plant will be able to export
up to 30 MW of renewable electricity to the grid.
Turkey
Geothermal energy
Project development
Acquisition of the Gümüşköy power plant (gross
capacity of 13 MW)
The Group announced in January that it has
completed the acquisition of a majority stake (75%) in the
geothermal energy producer Gümüşköy (in the Izmir region); the
remaining 25% has been acquired by Egesim, an industrial services
provider well regarded within the industry in Turkey. The
acquisition gives Albioma a bridgehead in a new business
characterised by significant technical added value, offering a
strong fit with the Group's well-established biomass and solar
power businesses. Geothermal power plants extract heat from below
the earth's surface and convert it to electricity. This
locally-produced, economically competitive energy source is
available on a 24/7 basis. Like biomass, geothermal energy
production is controllable, which enhances the dependability of
electrical networks and facilitates the development of other,
intermittent energy sources such as solar power.
Commissioned in 2013, the Gümüşköy power plant
uses heat from four production shafts to generate electricity under
the terms of an operating licence valid until 2040 (with scope to
extend for an additional 10-year period). The plant currently
exports up to 45 GWh of renewable electricity to the grid annually,
with a dollarised feed-in tariff of approximately USD 105/MWh,
valid until the end of 2023. With the support of the existing teams
which were taken over by Albioma, work will be carried out on the
site to increase production.
With an installed capacity of more than 1,600
MW, Turkey ranks fourth in the world for installed geothermal
capacity, with considerable potential for future development.
Joining the SBF 120 index
Following the quarterly review of the Euronext
Paris indices, the scientific advisory board of the indices decided
to include Albioma in the SBF 120 and CAC Mid 60 indices from 19
June 2020.
Inclusion in this benchmark index, which covers
the 120 largest stocks on the Paris stock exchange in terms of
market capitalisation and liquidity, represents a new milestone for
Albioma, which can benefit from the positive effects of increased
visibility amongst the financial community.
Issue of the first "Sustainability-Linked Euro PP" for a total
of €100 million for seven and eight years
On 7 December 2020, Albioma successfully issued
its first Sustainability-Linked Euro PP, for the significant sum of
€100 million. This private placement comprises two tranches at 7
and 8 years respectively, subscribed by leading institutional
investors. The funds raised were used to refinance the existing
Euro PP and will subsequently be used for the Group's general
financing needs over the medium term, to support Albioma in
carrying out its investment programme. This financing, exceeding
the previous Euro PP, which was set up by the Group in 2014, by €20
million and which matured on 8 December 2020, reflects the
company's growth dynamic and the strength of its fundamentals.
By setting up this funding, Albioma is
strengthening its commitment to the energy transition, which is one
of the key pillars of its development strategy. In its financing,
Albioma is committed to meeting the following targets in terms of
its energy mix (for the fully consolidated companies) thanks to the
conversion of all of the Group's historic power plants in France’s
Overseas departments to 100% biomass (complete discontinuation of
coal), in a movement that began in 2018, and the development of new
renewable energy projects, particularly in solar and geothermal
energy:
- more than 80% renewable energy by 2023, in line with its
previous announcements;
- more than 90% renewable energy by 2025.
The Group's ambition is to achieve a 95% to 100%
share of renewable energy in its mix by 2030.
Depending on whether the defined targets are
met, a margin adjustment mechanism (bonus/malus) that may reach up
to 25 basis points will produce a variation in the interest rate
applying to the bonds.
A strong balance sheet to finance growth
Consolidated gross financial debt excluding IFRS
16 was down in line with the repayment of loans relating to
commissioned projects (IED and new photovoltaic power plants). It
amounted to €901 million at the end of 2020, as compared with
€938 million at the end of 2019. Project debt came to €789
million (compared with €834 million at the end of 2019). The net
debt / EBITDA ratio over 12 rolling months improved by 3.8 times at
31 December 2020 (compared with 4.3 times at 31 December 2019).
The Group’s cash and cash equivalents, including
security deposits, amounted to €129 million at 31 December 2020,
compared with €165 million at 31 December 2019. Consolidated net
financial debt was €772 million (compared with €773 million at the
end of 2019).
Despite the economic downturn, the Group did not
need to apply for any state aid implemented to support companies in
difficulty, nor did it draw on its short-term credit lines. The
Group still has sufficient resources to pursue its development.
Dividends
The Board of Directors will submit to the
Shareholders' Meeting a proposal to distribute a dividend of €0.80
per share, up 14% compared with 2019, with an option for 50% to be
paid in new shares. This proposal is part of a dividend growth
policy with a target payout of around 50% of net income, Group
share excluding exceptional items.
2021 objectives
For 2021, the Group announces targets for EBITDA
of €206 to €216 million and net income, Group share of €53 to €59
million (including the acquisition of the Gümüşköy geothermal power
plant in Turkey and excluding any possible effects related to the
2021 Finance Act).
Outlook
The Group aims to commit between €600-€800
million in investments over the period 2021-2025 whilst retaining a
sound financial structure.
Next on the agenda: revenue for the first quarter of 2021 on 21
April 2021 (after trading).
About Albioma |
Contacts |
Albioma is an independent renewable energy producer, supporting the
energy transition with renewable energies (biomass, solar and
geothermal).The Group operates in Overseas France, Metropolitan
France, Mauritius, Brazil and Turkey.For 25 years it has been
developing a unique partnership with the sugar industry, producing
renewable energy from bagasse, a fibrous residue of sugar
cane.Albioma is also the leading producer of photovoltaic energy in
Overseas France, where the Group builds and operates innovative
facilities with integrated storage, and in Metropolitan France.The
Group recently announced the acquisition of a geothermal power
plant in Turkey. |
Investors Julien Gauthier +33 (0)1 47 76 67
00Media Charlotte Neuvy +33 (0)1 47 76 66 65
presse@albioma.com |
|
|
Albioma is listed on the Euronext Paris exchange (compartment B) -
Eligible for SRD, PEA & PEA-PME and forms part of SBF 120 and
CAC Mid 60.The Group is listed in the Gaïa Index of responsible
midcap companies. |
www.albioma.com |
Appendices
Simplified consolidated income statement
In millions of euros |
2020 |
2019Reported |
Change % |
Revenue |
506.7 |
505.7 |
+0% |
EBITDA |
206.4 |
182.9 |
+13% |
Depreciation, amortisation, provisions and other |
(84.0) |
(74.9) |
-12% |
Operating income |
122.5 |
108.0 |
+13% |
Net financial income |
(32.1) |
(30.2) |
-6% |
Tax |
(26.1) |
(23.7) |
-10% |
Effective tax rate1 |
29.3% |
31.4% |
|
Consolidated net income |
64.4 |
54.2 |
+19% |
Net income, Group share |
55.3 |
44.1 |
+25% |
Consolidated earnings per share (in
euros) |
1.78 |
1.44 |
|
1. The standard tax rate is
28.3% (effective tax rate restated for the impact of non-deductible
impairment losses and excluding Brazil). At 31 December 2019, the
rate was 31.6%
Simplified consolidated balance sheet
In millions of euros |
31 December 2020 |
31 December 2019 |
Assets |
|
|
Goodwill |
17 |
17 |
Intangible assets and property, plant and equipment 1 |
1,405 |
1,380 |
Other non-current assets2 |
30 |
37 |
Total non-current assets |
1,453 |
1,434 |
Current assets |
172 |
164 |
Cash and cash equivalents |
126 |
161 |
Total assets |
1,751 |
1,759 |
Equity and liabilities |
|
|
Shareholders' equity, Group share |
443 |
425 |
Non-controlling interests |
90 |
95 |
Total equity |
532 |
521 |
Current and non-current financial liabilities |
902 |
938 |
Lease liabilities related to right-of-use assets (IFRS 16) |
38 |
36 |
Other non-current liabilities |
133 |
121 |
Current liabilities |
145 |
143 |
Total equity and liabilities |
1,751 |
1,759 |
1. Including €28.5 million in
right-of-use assets (IFRS 16)
2. Including deferred tax
related to right-of-use assets (IFRS 16)
Simplified statement of consolidated cash flows
In millions of euros |
2020 |
2019 |
Cash flow from operations |
209.1 |
186.5 |
Change in the working capital requirement |
(11.9) |
23.2 |
Tax paid |
(23.5) |
(36.9) |
Net cash flow from operating activities |
173.6 |
172.8 |
Operating capex |
(20.8) |
(17.4) |
Free cash-flow from operating activities |
152.8 |
155.5 |
Development capex |
(107.7) |
(131.7) |
Other/Acquisitions/Disposals |
(1.1) |
0.2 |
Cash flow from investing activities |
(108.8) |
(131.5) |
Dividends paid to Albioma shareholders |
(14.0) |
(13.0) |
Borrowings (increases) |
149.3 |
226.3 |
Borrowings (repayments) |
(171.3) |
(130.1) |
Cost of financial debt |
(31.8) |
(30.7) |
Other |
(8.5) |
(9.2) |
Net cash flow from financing activities |
(76.3) |
43.3 |
Currency effect on cash |
(3.7) |
(1.4) |
Net change in cash and cash equivalents |
(35.9) |
65.8 |
Opening cash and cash equivalents |
161.1 |
95.3 |
Closing cash and cash equivalents |
125.2 |
161.1 |