Spanish companies that were born fully focused on renewable energy are in luck. Its benefits are skyrocketing thanks to the explosion of projects and to the fact that electricity prices in the wholesale market are pushing large companies to tie up their consumption through long-term purchase and sale contracts, known as PPAs (Power Purchase Agreements). Audax Renovables, Solaria and Grenergy add up a joint profit of 32.3 million euros between January and March, compared to 27 million in the same period of the previous year, that is, 20% more.
The group controlled by José Elías managed to get out of losses in 2022 and in the first quarter of this year it grew by 18%, with net profits of 2.4 million euros. The data was also accompanied by a rise in the gross operating result (Ebitda) of 47%, up to 23.1 million. The rise is due to the improvement in the European markets in which it operates and a policy of guaranteeing its gross margin in Iberia. The Catalan firm closed the first quarter of the year with a gross margin of 50.9 million euros, 41% more.
This was possible with an increase in installed power of 9%, up to 245 megawatts (MW). In this way, it increased its energy production globally by 13%, up to 76 gigawatt hours (GWh), driven by the contribution of the new photovoltaic plants that it has launched in recent months in Spain. With these metrics, the 100% renewable electricity and gas producer and supplier group lowered its net financial debt by 30% compared to the end of 2022, to 367 million euros, while its leverage was reduced to 71, 3%, compared to 73% at the end of the previous year and 78% in March of the 200 million euros since 2020.
‘Green’ production rises
Another company that does not stop growing is Solaria. The company recorded a net profit of 25 million euros in the first quarter, which translates into an increase of 22% compared to the previous year. For its part, Ebitda was 40.05 million euros, 21% more year-on-year, thanks to greater energy production due to the new plants connected last year and so far in 2023. GWh, 50% further. Likewise, between January and March, it connected the first of its large projects, Cifuentes-Trillo, to the grid, and obtained environmental permits and administrative authorizations for more than 4 GW of projects. I also obtained new connection points for the installation of 330 photovoltaic MW in the provinces of Girona and Tarragona, and obtained favorable environmental impact declarations (DIA) for 375 MW of the Casal de Valeira and Vale Pequeno plants, located in Portugal.
The Company Invested 375 Millions in the last year (115 Millions Only Between January and March) And Has Closed With The European Investment Bank (EIB) That % of the financing necessary for the Development and execution of all the projects. Under its strategic plan, it has the objective of reaching 3,083 MW in operation and construction by the summer of next year, which means doubling its current capacity. For its part, Grenergy increased its profit by 15%, up to five million euros, while it almost doubled its Ebitda with 14.3 million euros. It currently has contracted 2,000 million euros in PPAs between Spain and Chile for a total of 1.4 GW. In addition, it has another 1.5 GW under negotiation. The result was also influenced by the sale of two solar parks in Chile with a capacity of 21.6 MW. Grenergy’s project portfolio grew to 14 GW, of which 1.8 GW are already in operation or under construction. Regarding its storage portfolio, it has almost 10 GWh between Latin America, the United States and Europe.
On the opposite side is Soltec, which entered losses in 2020 due to the extraordinary impact derived from covid-19. The incidence of closures at a global level experienced during the second and fourth of that year caused project delays and extraordinary expenses as a result of the increase in the costs of transport, personnel, external services, supplies and insurance. The red numbers were cut by 38% in the first quarter, up to 9.6 million euros, and it is immersed in its strategic plan for 2025, with which it announced the creation of Soltec Assets, its new line of business dedicated to the management deactives. With this initiative, it hopes to obtain an additional income flow from the sale of energy, which will provide it with recurrence, solidity and stability.
Opdenergy presents quarterly results this Monday. Its objective for 2023 is to incorporate assets until adding 1.8 GW in operation to return to the market with force next year. The renewable energy producer will focus this course on continuing with organic growth after coming out of losses in 2022 (and achieving a profit of 63 million euros) and completing the transfer of the photovoltaic assets sold to Bruc Energy. Since its creation in 2005, it has divested almost 2 GW, and to continue growing, the firm closed a financing agreement with BBVA and the European Investment Bank (EIB) in July of last year for the construction and start-up of a portfolio solar photovoltaic in Spain with a total installed capacity of 605 MW. It also closed with ING ‘green’ financing for 107 million euros to add another 167 MW. Opdenergy expects new deals with the banks in the coming weeks or months.
The entity has power purchase agreements that cover between 60% and 70% of its production. It has also obtained favorable DIAs for a total of 1,146 renewable MW that are in the construction and pre-construction phase in Spain. The company’s photovoltaic plants are located in the provinces of Zamora, Ciudad Real, Zaragoza, Cuenca, Teruel and Badajoz. Opdenergy has set itself the objective of developing strategically located projects to obtain the highest energy performance while respecting the environment in which they are located and supporting local economies.
