AUDAX EXTRACTS MORE THAN €100 MILLION OF DEBT
During the last week of July, Audax Renovables (Audax) worked to reduce its debt by more than 100 million euros. Part of the funds needed for this purpose were raised through the sale of two renewable energy generation plants with a total installed capacity of 58.6 MW.
At the same time, the company has repaid its first bond of 21 million euros issued in 2014. These two operations are part of the Group's debt reduction strategy and are in line with the asset turnover strategy initiated by Audax and presented last May, on the occasion of the Investor Day [+info].
In this first phase, a wind farm (Mudéfer) with an installed capacity of 57.6 MW and a photovoltaic farm with a capacity of 1 MW have been sold; both are located in Spanish territory, the first near Tarragona and the second near Castellón.
In parallel, the Group is moving forward with the development of projects in the photovoltaic sector for 320 MW, 59 of which are already at a very advanced stage close to the start of work. Using a framework agreement signed with Banco de Sabadell, Audax intends to finance the work through the project finance mechanism.
As mentioned, Audax has paid off the 21 million euros of debt contracted in 2014 with the first bond issue. The goal is to significantly reduce corporate debt in order to bring the corporate debt/EBITDA ratio to 1.5x by the end of 2022.
The growth in turnover, both in Spain and abroad, the high cash generation, the increase in margin, as well as the aforementioned asset turnover are levers to create good results.
The margin increase was driven by long-term power purchase agreements (PPAs) and more competitive prices than the market and the generation of renewable energy from its own plants. During the first quarter of 2019, Audax Renovables also increased its 54% turnover figure, doubling its EBIDTDA compared to the same period of the previous year; a trend that is expected to continue throughout the year.
The Group, in this new phase of growth, continues to pursue its strategic objectives for 2022, such as increasing its customer portfolio from 305,000 to 500,000 and reaching an energy distribution of 15 TWh. Furthermore, it plans to exceed 1,500 million euros in turnover, triple its current EBITDA and reduce its level of financial debt. The goal is to optimize the Group's resources in order to create value for shareholders.
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Audax Renewables is the result of the merger between Audax Renovables and Audax Energía. The result is an energy group operating in 8 countries (Spain, Portugal, Italy, France, Holland, Germany, Poland and Panama), with over 500 employees and a turnover of over 1,200 million euros per year.
Audax Energy Italy was born in 2014; today it supplies electricity and gas to over 55 thousand domestic and business customers.
