How were the results of Greenalia in the 1H20?
Greenalia obtained much better results in the 1H20 than in the 1H19 as a consequence of the Biomass plant (COD March-20) and the Miñon wind farm (COD 1H20) which started its operations in 1H20
However, they were far away from its business plan 1-5-100. It was because of two main aspects, the delays in several wind projects as a consequence of the COVID-19 pandemic and the over-optimistic initial plan.
Greenalia will update its initial business plan in the first quarter of 2021. It is expected to be a 5 years business plan including more than 1000MW.
On the Q&A part of the conference call, the most relevant information was that they will wait another year to place Greenalia in the “Mercado Continuo” (Higher negotiation volume) and that they are actively looking for PPAs for the next wind farms.
The company results and balance sheet: (Spanish)
Greenalia – Conclusion
Greenalia is a company that can take advantage of the European funds and the plan to push for the renewable sector in the next 10 years. It has the biomass plant (99€/MW – 7500 h/year for 25 years) and several wind farms operatives, and it wants to develop offshore wind farms in the next years. Greenalia is very diversified in several technologies and its current market cap (300MM€) gives Greenalia a lot of margins to grow. It is also true that it has a lot of debt, but I believe that as soon as the market cap is higher, they will do an AK to finance the new projects.
At the end of this year, there will be a renewable auction where if they manage to obtain some MW, we believe that the cotización will rise considerably. We have the company in our portfolio regarding the potential growth in the next 2/3 years.
Greenalia finance statement and webcast here