September 28 (Solar) – French renewable power plants operator Voltalia SA (EPA:VLTSA) narrowed its net loss in the first half of 2018 to EUR 5.9 million (USD 6.9m) from EUR 6.8 million a year back, it announced on Wednesday.
The improvement was driven by an increase in energy sales, which rose by 7% at constant exchange rates. Their “solid performance” was partly offset by the poor wind conditions and a lower Brazilian real, said CEO Sebastien Clerc. He predicted that the second half of this year will benefit from favourable seasonality and positive price effect for energy sales, while the services business will record the first revenues by a partnership with private equity firm Actis Group.
Earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 15% to EUR 21.5 million, with EBITDA margin falling to 28.7% from 32.4%.
Voltalia’s revenues in the first six months of 2018 slipped by 4% in annual terms to EUR 74.7 million. However, at constant exchange rates, the result was 11% higher due to the positive price effect for energy sales and higher volumes in the services business.
In the area of services, which include the development, construction and procurement and operation and maintenance (O&M) of power plants, Voltalia boosted its revenues by 65% year-on-year to EUR 39.2 million, of which EUR 29.8 million came from development and construction revenues, which in turn more than doubled from a year earlier. Operation and maintenance revenues improved by 10% to EUR 9.4 million.
Revenue from the energy sales business was down 8% on the year to EUR 55.7 million but rose by 7% at constant exchange rates due to price increases from Voltalia’s active management of long-term power sale contracts.
Voltalia has set a target of having 1 GW of own capacity by 2020. The company’s CEO said that the goal has been recently secured thanks to new contract awards in France, Brazil and Africa.
At the end of June, the French company had 518.8 MW of installed capacity, the bulk of which is from wind farms in Brazil.
(EUR 1.0 = USD 1.164)