Grenergy Renovables (GRE) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was €192 million, down 15% year-over-year, with EBITDA up 43% to €31 million and net income at €0.5 million, mainly driven by asset rotation and a major $128 million acquisition in Chile.

• Major asset rotation in Peru generated €116 million in proceeds, and the Group completed significant asset sales and signed major PPAs and financing agreements.

• The Group's pipeline expanded to 15.9 GW solar and 21.7 GWh storage, with a mixed build-to-own and build-to-sell strategy.

• CapEx totaled €186 million, with ongoing deflation in module and battery costs, and focused investments in Spain, Chile, and Colombia.

• Equity increased to €369.1 million, and working capital remained positive at €128.9 million.

Financial highlights

• Revenue was €192 million, down 15% year-over-year; EBITDA rose 43% to €31 million, and net profit was €0.5 million, down from €4 million in H1 2023.

• CapEx for H1 2024 was €186 million, with tangible fixed assets at €766 million.

• Net debt increased to €736 million, leverage ratio 6.6x, and covenant leverage 2.9x.

• Cash and cash equivalents stood at €125 million at June 30, 2024.

• Gross margin increased 40% year-over-year to €61.6 million.

Outlook and guidance

• Asset rotations are expected to continue in H2 2024, with strong investor appetite for operational and under-construction assets.

• CapEx plan for 2023-2026 remains at €2.6 billion, self-funded through asset rotation and project financing.

• The Group aims to reach 1.1 GW of installed solar capacity and 1 GWh of storage by year-end 2024.

• No updated EBITDA guidance provided; strategic update and new guidance expected in November.

• ESG roadmap 2024-2026 targets further integration of sustainability, with 117 specific actions planned.