Audax Renovables shields itself from the effects of COVID-19
Audax Renovables closes the first quarter of 2020 with an increase in gross margin of 3.2% and a profit of 1.4 million euros
Audax Renovables (ADX.MC), the energy group that integrates the marketing and generation of 100% renewable electricity businesses, presents its results for the first quarter of 2020 framed in the exceptional circumstances caused by COVID-19. The company, faced with such circumstances, anticipated itself by developing a contingency plan aimed at mitigating the possible impact with the aim of maintaining its solid financial position, as well as its liquidity and credit profile.
Audax closes the first quarter of 2020 with revenue from operations of 234 million euros, below the previous year, mainly due to the following factors: a lower energy price in Spain, with 37% lower than the same period of the year. previous year in the case of electric energy and a lower 53% in the case of the gas market; a drop in demand at the European level due to warmer weather; and, for the purpose of leaving the perimeter of the three generation plants sold in fiscal year 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% on the turnover, compared to 10% in the same period of the previous year.
To face the possible effects derived from COVID-19, Audax Renovables has recorded an extraordinary provision for bad debts of 3.3 million euros, due to the contingency plan prepared for this purpose under conservative criteria, which should allow Audax Renewables will be shielded for the entirety of this year.
EBITDA in this period stood at 12 million euros, closing with a net profit of 1.4 million euros. For comparative purposes, without taking into account the COVID-19 effect and the divestitures of the generation plants in the previous year, the EBITDA would have been 20.6 million euros, 43% higher than the first quarter of the previous year, and the net result at 6.8 million euros.
At the end of the first quarter of 2020, Audax Renovables has more than 365,000 active supply points, 19% more than in the same period of 2019. The increase in the number of customers has partially cushioned both the fall in the price of energy in the national market, mentioned above, such as the drop in demand caused by COVID-19.
On the other hand, Audax Renovables continues to focus 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 compared to the initially planned dates. Specifically, last January construction of the Cañamares photovoltaic plant began in the municipality of Fontanar (Guadalajara, Castilla-La Mancha) with a power of 5 MWp, and construction of the Carolinas I photovoltaic plants will begin shortly. and II of 10 MWp in total, both being located in the municipality of El Casar (Guadalajara, Castilla-La Mancha).
Additionally, last April, the Spanish rating agency Axesor ratified the company's rating under the Investment Grade rating (BBB-) with a stable outlook, demonstrating the company's solid financial position even in times of current uncertainty.
Likewise, it is worth noting that the Group reduced its debt by 13 million euros in the first quarter of the year.
The price of Audax Renovables shares has been inevitably affected by the situation created by the COVID-19 pandemic, after having reached highs in this period of €2.72/share. However, the main financial and business figures place Audax Renovables in a very good position to face the current situation with the maximum guarantees of solvency. To this we must add that the company's geographical diversification limits the risk of business concentration, being present in the marketing 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 was incorporated into the IBEX SMALL CAP® index, which makes it a reference value for investors.
