2020. Audax Renovables Increases Profit to €26.4M Despite Pandemic

Audax Renovables, a company whose business is divided between the marketing of electricity and gas and the generation of renewable electricity 100%, has increased its operating profit for 2020, reaching a record figure of 26.4 million of euros and marking a +4% compared to the previous year. A result achieved despite the health emergency situation in which we still find ourselves.

The benefits resulting from the vertical integration between the energy sales and production activities in 2020 allowed Audax Renovables to close the 2019 financial year with a sales of 969 million euros, and a EBITDA equal to 66.4 million euros.

With regard to the recent announcement on the incorporation of a portfolio of 1,942 MWp into renewable energy projects, Renewable generation – currently in different stages of development – the Group is convinced that they represent a significant dimensional change in the future income structure; this also in terms of commitment to sustainability and the environment, considering the entire 2,498 MW portfolio. It should be noted that, despite the difficult situation caused by the pandemic, the Group has been able to start construction work on 60 MW in the Spanish provinces of Guadalajara, Toledo and Huelva.

As regards the activity of marketing, the number of customers increased by 52% compared to the previous year, reaching 515 thousand units; a result that allows the Audax Group to remain the leading independent electricity sales company in the SME segment of the Spanish market. The growth in the number of customers allowed the energy supplied to increase by 6% compared to the previous year, reaching 10.5 TWh. All this despite facing an extremely complicated financial year resulting from the impacts of COVID-19, which led to a drop in revenues due to the decrease in raw materials and lower consumption by customers.

Despite this, Audax Renovables is managed to expand internationally, entering the Hungarian market with the acquisition of 100% of E.ON EnergiakereskedelmiKft, an electricity sales company.

The company also has issued “green” and convertible bonds for the sum of 325 million euros.

Jose Elias, chairman and majority shareholder, commenting on the 2020 results says “proud of what has been done and how the difficult global situation has had no impact on the Group's investment and financing strategies, to the point that green bonds and convertible bonds have been issued. Furthermore, the available cash flow has reached levels never seen before, which allows us to have more financial resources to face, with greater serenity, the generation projects in which we have committed to invest in the coming years”.

In addition to the above and the increase in bond issuance, Audax keeps its debt level stable as the PFN/EBITDA ratio is below 3x, even taking into account the green bond and convertible bond issues announced by the Group in the second half of the 2020 financial year.

Given the financial solidity and if circumstances allow, in the current 2021 financial year Audax would like to return to distributing a dividend of 10 million euros related to the 2020 results; all this considering that last year the distribution was canceled due to the situation caused by COVID-19.

In summary, these results represent an improvement in all areas and place the energy company in an excellent position to continue with its Strategic Plan.