Audax reaches a record revenue figure of 1,323 million during the first half, 91% more
The company increases its EBITDA by 35% (€24.5m) and its gross margin by 21% (€65.1m) thanks to its vertical integration strategy and the effect of investments in renewable generation that has allowed it to increase installed power by 55% (226 MW).
Investment in new generation plants has already totaled 164 million euros in the last three years (20 million during the first half of 2022), undertaken to date solely with its own resources.
Audax Renovables (ADX.MC), a vertically integrated Spanish energy group that generates and supplies 100% renewable electricity and gas to customers in 7 European countries, announces its results for the first half of the year, in which it records a record revenue figure of 1,323 million euros, 91% more than in the same period of the previous year.
The decisive strategic commitment undertaken by the company in recent years towards vertical integration between generation and marketing activities has made it possible to mitigate the risk of price volatility in a challenging macroeconomic context, marked by the conflict in Eastern Europe and the increase in price of raw materials, thus ensuring recurring income from the energy generated and a supply of the energy to be marketed with less impact.
The 36% increase in the volume of renewable energy generated compared to the same period in 2021, together with the increase in the price of gas and energy produced by its own generation, places Audax's income figure during the semester at its historical maximum reached during a semester. The markets of Spain and Portugal represent 53% of these revenues, while the same in the rest of Europe represent 46%.
Audax's gross margin increases by 21%, standing at 65.1 million euros, while EBITDA stands at 24.5 million euros, 35% more than during the first half of the previous year. The aforementioned vertical integration strategy and the effect of the investments made in renewable generation have allowed the installed power to increase by 55% during this period (226 MW). This diversification in the different generation of EBITDA mitigates the risks of volatility and guarantees a situation of stability in the face of uncertain market scenarios. For its part, the result for the year regains the positive sign of its semi-annual results and reaches 2.8 million euros, compared to the losses of 4.4 million in the same period of the previous year.
Additionally, it should be noted that the Group's EBITDA would have stood at 28.7 million euros without taking into account the new state regulation in Poland in force since January 1, 2022, which forced the establishment of maximum sales prices to customers for below the previously set target price. As a consequence, the Group made the decision to stop operating in the gas market as of the end of the first quarter of 2022. As a result of this action, the Polish subsidiary has reported positive EBITDAS in the second quarter.
The Group's Net Financial Debt stands at 487 million euros compared to 444 million euros as of December 31, 2021, reducing the financial debt by 10.8 million euros. It should be noted that the Group's financial debt is mainly at a fixed interest rate, so the Company is not significantly affected by changes in market interest rates, in the current context of rising rates.
In the first half of 2022, operating cash flows of 10.5 million euros have been generated, compared to a negative operating cash flow of 43.9 million euros in the same period of the previous year. This has allowed Audax, despite the macroeconomic situation, to continue with its investment strategies.
Investment of 164 million in the last two years for generation assets
At the end of the first half of 2022, Audax has 421 thousand supply points between gas and electricity, which represents an average growth of 32% in the same period of the last four years. As a consequence of its strategy aimed at portfolio optimization and risk minimization in a volatile market context, the company has implemented a series of measures in all the countries where it operates that have resulted in a selective reduction of the 23% of the points of supply, as well as the definitive cessation of gas market operations in Poland to focus on the electricity business. Following these decisions, electricity supply points account for 81% of the company's total business and gas supply points account for the remaining 19%. In total, Audax has supplied 6.9 TWh of energy to its customers in the first half of the year.
Globally, production in the first half of 2022 stood at 132 GWh, 36% higher than the same period of the previous year. Production in Spain (+79%) has been higher due to the contribution of 42 GWh to peninsular production from the new photovoltaic plants commissioned.
In relation to its operations, the company manages a project portfolio of 2,536 MW in Spain, Portugal and Italy, strategic markets where it already operates through marketing activity through its different subsidiaries.
Audax has continued to develop, build and launch projects that have allowed it to increase its installed renewable power, with determined investment in new generation plants that already totals 164 million euros in the last three years (20 million in the first half of 2022 ). An investment made to date solely with own resources.
During the first half of 2022, Audax has announced the start of construction of the Zaratán project in the municipality of Giguñuela, in Valladolid, which will generate 21.5 GWh/year, the equivalent of the energy consumption of almost 5,500 homes. Likewise, the company has also announced the start of construction of the La Miranda plant in the municipality of Fontanar, in Guadalajara, which will generate 12.2 GWh/year, the equivalent of the energy consumption of 3,500 homes. The Group expects that the start-up of these facilities will occur during the first quarter of 2023.
Sustainability and commitment: More than 128 tons of Co2 avoided into the atmosphere
During the first six months of the year, Audax's sustainable strategy in its current activity avoided the emission of 128 tons of CO2 into the atmosphere, with its generation activity being 100% renewable. Of the total energy supplied by Audax from January to June 2022, one 74% was of renewable origin taking into account gas activity.
In terms of equality, almost 60% of Audax employees worldwide are women, as well as 33% of its board of directors. The female quota among its independent directors also reaches 33%. According to its current roadmap, Audax plans to promote its ESG strategy and implement its Sustainability Plan throughout 2022 and 2023.
