Services business pushes up Voltalia's Q2 revenues

Molinons wind farm, located in Yonne.

July 22 (Renewables Now) - French renewable power plants operator Voltalia SA (EPA:VLTSA) last week announced it had doubled second-quarter revenues in the Services business as construction gained pace, but recorded a drop in energy sales.

Voltalia’s services business encompasses the development, construction and procurement, as well as operation and maintenance (O&M) of power plants. The segment’s revenues expanded to EUR 50.2 million (USD 56.3m) in April-June 2019 from EUR 20.1 million a year before, with the main driver being sales from development, construction and procurement. They grew by a factor of 2.8 times amid fast-growing contribution of the construction business and rising development sales in France and Brazil. This increase was coupled with a 40% improvement in O&M revenues as the company’s portfolio of assets under O&M remained “broadly stable” at around 1 GW.

In the energy segment, Voltalia saw its revenues drop by 15% year-on-year at constant exchange rates as power sales revenues in Brazil declined in line with a drop in pricing and production. That drop, according to the company, was a return to normal pricing levels, following a positive non-recurring pricing effect it recorded in 2018. Production and revenue levels in other countries, meanwhile, were higher thanks to the favourable weather conditions and the contribution of new power plants in France.

The table below gives more details about the company’s revenues in the second quarter and first half of 2019.

In EUR million	Q2 2019	Q2 2018	Change	Change at constant currency	H1 2019	H1 2018	Change	Change at constant currency
Consolidated revenues	41.9	36.7	+14%	+16%	68.8	74.7	-8%	-6%
- Energy	24.1	28.9	-17%	-15%	45.5	55.7	-18%	-15%
- Services	50.2	20.1	x2.5	x2.5	85.8	39.1	x2.2	x2.2
Production (in GWh)	410	404.4	+1%	+1%	756.6	804.4	-6%	-6%

The French group ended the first half of 2019 with 529.5 MW of installed capacity, the bulk of which in Brazil, or 2% more than in the year-ago period. Its wind, solar, hydro and biomass power plants generated 756.6 GWh of electricity in the six months, down 6% in annual terms. Following the drop in production, Voltalia expects those levels to improve in the second half of 2019, while the company is continuing work to reach its goal of having 1 GW of own capacity by 2020 and will as a result limit work with third-party clients.

Voltalia confirmed Mid-and long-term objectives, as follows:

Goal	2020	2023
Capacity in operation	1 GW	>2.6 GW
EBITDA (EUR million)	160-180	275-300

(EUR 1.0 = USD 1.122)