Greenvolt posts €2.7 million loss for Q1
Greenvolt posted a €2.7 million loss for Q1 of 2024 but promises that its business and profitability will significantly improve throughout the year.
The company, led by João Manso Neto blamed “low electricity prices in the UK”, penalising its biomass segment in the country where it has operations.
The company also pointed to an absence of asset rotation operations in energy generation.
The group announced total operating income of €101.6 million (+60% compared to Q1,23), an EBITDA of €18.7 million (-21% compared to Q1,23), a net loss attributable to Greenvolt, excluding the impact of discontinued operations, at €-1.5 million, with an overall net loss of €-2.7 million.
The Group has just announced the acquisition of the entire share capital of Kent Renewable Energy Ltd (Plant Pictured) , the owner of a biomass power plant in the UK with a capacity of 28 MW (electric) / 25 MWth (heat) and a load factor of 95%.
The facility benefits from being Renewables Obligation Certificate (“ROC”) and Renewable Heat Incentive (“RHI”) accredited. The transaction, which was signed in Q2, 24, will position Greenvolt as one of the most important sustainable biomass players in the UK. It is expected to close in Q4, 24, subject to the customary conditions and approvals.
“The decrease in this quarter’s results was due to specific factors in line with the Company’s expectations for this quarter, but does not reflect Greenvolt’s forecast for 2024 as a whole, in which a significant improvement in activity and profitability is expected. In fact, the results do not represent the Company’s expectations for 2024 as a whole, which foresees a significant improvement in activity and profitability during the course of the year”, states Greenvolt.
The results were down because in Biomass, the continuously low electricity prices in the UK and the prolonged rainy season in Portugal, which impacts the quality of the raw material, were the main drivers for the lower EBITDA than in the same quarter last year.
In the Utility-Scale segment, as expected, there were no new asset rotation operations this quarter. However, four sales processes are ongoing, two of them already with binding offers and two with a preferred bidder, which are expected to be concluded during this year. The total pipeline has also increased to 8.6 GW (compared with 8.4 GW in December, 2023) and projects in development or under construction are proceeding as planned.
The DG segment is continuously growing, particularly regarding the backlog and the projects under construction. Regarding financial performance, the segment has not yet reached break-even, given that there were delays in the final stages of some projects caused by adverse weather conditions (typical seasonality of this business) and the process of obtaining permits.
As of June, KKR & Co. Inc. concluded the share purchase agreements from Greenvolt’s majority shareholders, converted its Greenvolt Convertible Bonds 2030 into equity, and acquired shares in the market, becoming Greenvolt’s largest shareholder with 83.62%2 of share capital.
This change in the capital structure has strengthened the Company’s financial position and will further enhance its strategic capabilities, providing vigorous support and investment opportunities.
“Greenvolt remains confident in its strategic direction and anticipates a significant increase in results for 2024 compared to 2023. The Company continues to focus on expanding its renewable energy portfolio, enhancing its market position, and delivering long-term value to its stakeholders”, the company said.
