Grenergy Renovables (GRE) Q3 2024 earnings summary

Executive summary

• Underwent transformation from pure PV to PV and storage, focusing on hybridization and large-scale projects like Oasis de Atacama.

• Revenues reached €278 million, down 21% year-over-year, with EBITDA at €53 million, a 48% decline; net income was €6 million.

• CapEx surged 61% to €419 million, mainly driven by Oasis de Atacama and Spanish projects.

• Strategic partnerships secured with CATL and BYD for battery supply, ensuring diversified sourcing for flagship projects.

• Recognized among the top 15 most sustainable utilities globally by MSCI and top 16% by S&P Global.

Financial highlights

• Revenue for the nine-month period was €278 million, down 21% year-over-year, but would have been up 16% if certain inventories were recognized as revenue.

• EBITDA declined to €53 million from €102 million year-over-year, mainly due to the absence of large asset disposals like Belinchón.

• CapEx totaled €419 million, with 50% allocated to Oasis de Atacama and 30% to Spain.

• Net debt increased to €975 million, with a net debt to EBITDA ratio of 18x, expected to decrease with upcoming asset rotations.

• Cash position at end of September was €67 million, with sufficient liquidity for 2025 CapEx plans.

Outlook and guidance

• Anticipates exponential EBITDA growth as new plants, especially Quillagua and Oasis de Atacama, come online in Q1 next year.

• Sticks to three-year CapEx guidance of €2.6 billion from 2023 to 2026, with annual CapEx expected near €1 billion in 2025 and 2026.

• Guidance for EBITDA remains unchanged, with an update expected in early 2025 to include 2027 targets.

• Merchant prices are expected to recover in 4Q24 due to rising gas prices.

• Project finance for Oasis Atacama Phases 3 and 4 anticipated to close before year-end; asset rotation to accelerate leverage reduction.