AUDAX RENOVABLES, MORE RECORD RESULTS

Audax Renovables, the Spanish group dedicated to the marketing of electricity and gas and the generation of renewable electricity 100%, has pulverized its previous records.

The optimization resulting from the vertical union between the two activities (marketing and generation) has allowed us to close the first nine months of the 2019 financial year (January-September) with a turnover of 783 million euros, +10.1% compared to the same period in 2018.

Audax Renovables achieved a profit of 18.5 million euros and increased EBITDA of the 71,5% until reaching the figure of 58.2 million euros.

And the improvement has affected data from all sectors. The good performance of energy sales, both in Spain and in the markets where it is present – including Italy – has allowed the gross margin of the 26% to increase. On the other hand, the generation part has recorded a 27% increase, mainly due to increased use of wind energy and a higher price of Polish Green Certificates, which was 54% higher than in the same period of the previous year.

As announced during the Capital Markets Day, Audax Renovables continues its policy of asset turnover and debt reduction. And the financial debt has been reduced by 25%, a result that places the DFN/EBITDA ratio at 3.34.

Similarly, last October, the Group expanded the bond issue launched on the market a year earlier. With this operation (35 million euros), carried out according to the “tap issue” mechanism, Audax Renovables has achieved financial stability for the next three years (expiry is scheduled for 2023). In this way, the total amount of the issue is 70 million euros.

Furthermore, during the first nine months of 2019, Audax Renovables signed several contracts PPA (Power Purchase Agreements) for the long-term purchase of energy generated by photovoltaic. At the beginning of the year, it signed with WElink a 20-year fixed-price energy purchase and sale agreement from the Solara4 photovoltaic park and other installations that the WElink group is developing in Spain and Portugal, for a total installed capacity of 708 MW.

In addition, Audax Renovables has entered into a framework agreement with Trina Solar, a world leader in the photovoltaic sector, for the purchase of energy generated up to 300 MW for 20 years.

These two operations will contribute to improving the purchase price of Audax Renovables' energy and to consolidating the position that the Group has in the Spanish market, as fourth supplier of energy in the PMI segment.

Financial solidity, good results and growth prospects are the elements that – last April – led to the confirmation of the Investment Grade rating BBB- with stable outlook given by the rating agency Axesor.

At the end of the third quarter of 2019, Audax Renovables had over 326,000 customers, +6.8% compared to the same period in 2018. Of these, 79.7% concern the supply of electricity and 20.3% of gas.

Audax Renovables' objectives are: to reach more than 500,000 customers in the 2020 financial year, to supply more than 15 TWh of energy, to reach 1,500 million euros in revenue and to exceed 100 million euros in EBITDA.

All this, doubling profitability and releasing financial leverage in light of the high cash generation.

The achievement of these results will allow Audax Renovables to strengthen its position as the leading independent energy sales company in the SME segment in Spain and to replicate the success achieved in the international markets in which it operates: Portugal, Germany, Holland, France, Poland, Panama and Italy.

Finally, let us remember that the trend of actions of Audax Renovables on the Madrid Stock Exchange has recorded a +12.79% since the beginning of 2019, with very high average trading values.