The Group's revenues increased by 56% - to EUR 2 billion, 633 million - and the EBITDA indicator amounted to EUR 54 million, i.e. 16% more than last year.
Unlike last year, when Audax recorded losses, the Group ended 2022 with a profit of EUR 7.8 million.
FEBRUARY 27, 2023 - Audax Renovables (ADX.MC) - a Spanish vertically integrated energy group, producing energy in 100% from renewable sources and supplying electricity and gas to customers in seven European countries - achieved a profit of EUR 7.8 million in the 2022 financial year . The group increased revenues by 56%, and total sales amounted to EUR 2 billion 633 million.
Thanks to vertical integration, the company managed to survive the major destabilization of the global energy market, which was mainly caused by the armed conflict in Eastern Europe and the increase in raw material prices.
Measures implemented during the year to optimize operations, the market diversification policy and an increase in the capacity of owned power plants by 9% (up to 245 MW) - all this made it possible to increase the gross margin by 17% - to EUR 144 million - and increase the EBITDA indicator by 16% (EUR 54 million). ). The financial result is a profit of EUR 7.8 million, while in the previous financial year the company recorded a loss of EUR 3.3 million.
Audax increased the impact of its production activities on EBITDA from 27% in 2021 to 42% in 2022. This result clearly shows that the vertical integration of operations and the focus on energy from renewable sources in 100% was the right decision. The EBITDA ratio for energy production increased significantly compared to the result achieved at the end of 2021 - thanks to the increase in the capacity of owned power plants and a higher sales price.
It is worth emphasizing that achieving the above-mentioned EBITDA value related to the electricity production activity was possible thanks to the active portfolio owned by the Audax Group, estimated at the end of 2022 by an independent expert at EUR 129 million. Fixed assets worth EUR 130 million are under construction, which do not increase EBITDA yet because they have not been launched yet. This sum shows how huge the Group's development potential is when it comes to activities related to electricity generation.
As for gross financial debt, the company managed to reduce its level by EUR 130 million - it currently amounts to EUR 642 million. This means that the company's financial situation is good, which will allow it to further expand its power plant portfolio and face short-term liabilities. Thanks to the adoption of an appropriate policy on capital discipline and liquidity management, the company managed to achieve cash flow from operating activities in the amount of EUR 152 million, of which EUR 45 million was allocated to new investments and EUR 146 million to debt repayment.
Hypothetically, if the market access transaction with Shell Energy Europe Limited in Spain had an impact for the entire 2022 financial year, the cash flow generated by Audax would be approximately EUR 50 million higher.
Diversification of customer portfolio and increase in profitability
Audax remains faithful to its policy of organic and inorganic development, thanks to which in the last four years it has managed to increase the number of consumption points to which it supplies electricity and gas by 14%. Their total number is currently 387,000, and the volume of energy supplied is 13 TWh. Over the last year, due to changes in the markets and the risk associated with their destabilization, the company focused its efforts on increasing profitability by implementing measures to diversify the portfolio and reduce risk in all countries in which it operates. As a result, the company reduced the number of consumption points by 25% and the volume of energy supplied by 15% compared to last year. This led directly to positive changes both in terms of the gross margin achieved by the company and its EBITDA ratio. Currently, 80% points in the portfolio are electricity consumption points, and 20% - gas consumption points.
The best results in fiscal year 2022 were achieved by countries with the greatest vertical integration (mainly located in Southern Europe). The country that has the greatest impact on the Group's results related to electricity is Hungary - 45% of electricity supplied by Audax goes there. When it comes to gas, the Netherlands is the leader (52% of total volume). The Iberian Peninsula, in turn, is responsible for almost one third of electricity and gas supplies.
The company still wants to focus mainly on industrial customers, which constitute 93% its portfolio. The household share of the wallet in FY2022 decreased from 11% to 7%. This happened in connection with the activities undertaken by Audax in the sector of small and medium-sized enterprises, which were its target group from the beginning of the company's operations.
Favorable changes in the production portfolio
The total amount of electricity produced by Audax in 2022 was 258 GWh (including production in Panama). This means an increase of 29% compared to the previous year. Production on the Spanish market increased significantly - by 70% - thanks to the launch of new photovoltaic power plants, which increased the total electricity production by 90 GWh.
As for changes in the portfolio of power plants owned by the Audax Group, in line with the objectives set by the Spanish law - Royal Decree 23/2020, it currently includes power plants with a total capacity of 1.4 GW. Audax is still implementing planned activities in the field of construction of new installations. Recently, for example, the construction of additional power plants with a capacity of 26 MW has begun, and photovoltaic installations with a capacity of 19 MW have been launched.
The process of preparations for the construction of several other new power plants that will be included in the Group's portfolio is already at a very advanced stage. They will have a total capacity of 141 MW and a positive environmental impact certificate has already been issued. The construction of further installations with a capacity of 323 MW will begin soon. This gives a total of 464 MW of power, including 26 MW currently under construction and 245 MW already in operation.
Advances in ESG
In 2022, the company improved its strategic leadership and sustainability management to make further progress on ESG. In the same year, the Management Board approved a new sustainable development strategy, and the company employed an employee responsible for its development and implementation.
The new strategy is based on three pillars: environment, society and corporate governance, for which actions and initiatives have already been defined and implemented to improve results.
As Audax Renovables CEO José Elías said: “We once again managed to end the year with liquidity, and it was a year in which the market put us to the test. Our strong strategy focused on renewable energy generation and customer portfolio optimization, combined with new strategic agreements concluded with renowned partners, will allow us to further increase the competitiveness of our company.”
More about Audax Renovables
Audax Renovables is a vertically integrated Spanish energy group founded in 2000, producing energy in 100% from renewable sources and supplying electricity and gas to customers in seven European countries.
Audax currently has wind and photovoltaic power plants in its portfolio located in Spain, Portugal, Italy, France, Poland and Panama. Some of them are already operational, others are at various stages of construction, and their total capacity exceeds 1 GW. When it comes to energy sales, the group, headed by José Elías Navarro, supplies electricity from renewable energy sources and gas to over 380,000 customers in Spain, Portugal, Italy, Germany, Poland, the Netherlands and Hungary. On the Iberian Peninsula, it is a leader in the small and medium-sized enterprise sector. Since 2003, Audax has been listed on the Spanish secondary market, and since 2007 - on the continuous market, where in March 2020 it was included in the IBEX SMALL CAP® index. The Group's stock market capitalization is currently over EUR 600 million. The company employs over 800 employees.
