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1Q 2020 Results


Audax Renovables closes the first quarter of 2020 with a 3.2% increase in gross margin and a profit of 1.4 million euros

Audax Renovables (ADX.MC), the energy group whose activities involve retail and production of 100% renewable electricity, presents its results for the first quarter of 2020 in the context of the exceptional circumstances caused by COVID-19. The company, under these circumstances, anticipated by developing a contingency plan aimed at mitigating the potential impact to maintain its solid financial position, as well as its liquidity and credit profile.

Audax ended first quarter 2020 with sales figures amounting to €234 million, lower than the previous year, mainly due to the following factors: lower energy prices in Spain, 37% lower than in the same period of the previous year in the case of electricity and 53% lower in the case of the gas market; a fall in demand at European level due to warmer weather; and the effect of the exit from the perimeter of the three generation plants sold in 2019.

However, due to an improvement in the management of its supplies, the company has increased its gross margin by 3.2% compared to the same period of the previous year, placing it at 13% of turnover, compared to 10% in the same period of the previous year.

In order to deal with the possible effects of the COVID-19, Audax Renovables has registered an extraordinary allowance for insolvencies of €3.3 million, as part of the contingency plan drawn up for this purpose under conservative criteria, which should enable Audax Renovables to be shielded for the entirety of this financial year.

EBITDA in this period was €12 million, closing with a net profit of €1.4 million. For comparison purposes, without taking into account the COVID-19 effect and the divestments of the generation plants in the previous year, EBITDA would have been 20.6 million euros, 43% higher than in the first quarter of the previous year, and net profit would have been €6.8 million.

At the end of the first quarter of 2020, Audax Renovables had more than 365,000 active supply points, 19% more than in the same period of 2019. The increase in the number of clients has allowed Audax Renovables to partially cushion both the aforementioned drop in energy prices in the domestic market and the fall in demand caused by COVID-19.

On the other hand, Audax Renovables continues to bet on the construction of its generation plants. Even with the current situation caused by COVID-19, the works have not been significantly affected and the start-up of the projects will not have significant delays with respect to the initially planned dates. Specifically, last January, construction began on the Cañamares photovoltaic plant in the municipality of Fontanar (Guadalajara, Castilla-La Mancha) with a capacity of 5 MWp, and construction will shortly begin on the Carolinas I and II photovoltaic plants with a total capacity of 10 MWp, both located in the municipality of El Casar (Guadalajara, Castilla-La Mancha).

In addition, last April, the Spanish rating agency Axesor ratified the company’s rating as Investment Grade (BBB-) with a stable outlook, demonstrating the company’s solid financial position even in the current times of uncertainty.

Likewise, it should be noted that the Group reduced its debt by €13 million in the first quarter of the year.

Audax Renovables’ share price has inevitably been affected by the situation created by the COVID-19 pandemic, after reaching a maximum of 2.72 €/share during this period. However, the main financial and business figures place Audax Renovables in a very good position to face the current situation with the maximum solvency guarantees. To this we must add that the geographical diversification of the company limits the risk of business concentration, being present in the supply and/or generation businesses in Spain, Portugal, France, Italy, Germany, Holland, Poland and Panama. In addition to all of the above, last March Audax Renovables joined the IBEX SMALL CAP® index, making it a benchmark value for investors.

About Audax Renovables

Audax Renovables is the result of a merger between Audax Renovables itself and its parent company, Audax Energía, which gave rise to an energy group whose business is focused on electricity and gas supplying as well as on the production of 100% renewable energy.

Currently, it is listed on the Spanish Continuous Market under the name (ticker) ADX.MC, having been included in the IBEX SMALL CAP® index on March 23, 2020.

As an energy Group with leading position in the SME segment in Spain, Audax Renovables guarantees efficient supply of energy retailed through a process of vertical integration with the renewable energy production branch, with a robust financial position and ready to lead the energy transition on the European market.

The Group operates through two different business activities: supply and production. Its division of electricity and gas suppply is present in Spain, Portugal, Italy, Germany, Poland and the Netherlands, adding up to more than 365 thousand customers.

On the other hand, the generation division manages a total portfolio of operating wind farms of 91 MW in Spain, France and Poland. Additionally, it also has a portfolio under development of 320 MW of photovoltaic capacity in Spain, as well as a 66 MW wind project under construction in Panama.

More information about Audax Renovables is available here: www.audaxrenovables.com