2015 Annual results
EBITDA and net income (Group share) in line with the revised May 2015 targets
Amendments to the Albioma Le Gol contract for combustion by-products and liquid effluents
Strong industrial performance in Brazil in a challenging macroeconomic climate
Albioma's Board of Directors, chaired by Jacques Pétry, met on 1 March 2016 and approved the Group's consolidated financial statements for the 2015 financial year.
Jacques Pétry, the Chairman and Chief Executive Officer, commented: "Albioma is implementing with determination its strategy of recovering biomass and solar power, in the French overseas territories, Mauritius and, since 2014, Brazil.
The relevance of our strategy is demonstrated by the results of the COP21 and the new French law on energy transition.
For the first time in our history, the renewable energy produced by Albioma represented 50% of our total production in 2015. It will represent around 80% by 2023."
Consolidated key figures for 2015
| In millions of euros (1) | 2015 | 2014 | % change | |
| Revenue | 349.6 | 354.0 | -1% | |
| EBITDA | 119.9 | 129.0 | -7% | |
| Net income | 32.3 | 31.7 | +2% | |
| Net income (Group share) | 30.2 | 38.0 | -20% |
Notes
(1) Audited data.
Revenue totalled €349.6 million, down slightly due to lower raw material prices. EBITDA stood at €119.9 million in 2015, down 7% from 2014. Net income (Group share) came in at €30.2 million, a decrease of 20% due largely to lower electricity prices in Brazil, compared with exceptionally high levels of 2014.
France
The Thermal Biomass business recovered its strong performance, after a difficult first six months
The availability rate of the Group's thermal power plants in France was 86.6% in 2015 (versus 90.1% in 2014). This availability rate was impacted by the labour dispute in Guadeloupe in the first half of the year and technical incidents at the Le Gol plant on Reunion Island and the Le Moule plant in Guadeloupe in the second quarter. The action plan put in place following the incidents enabled business to return to normal for these plants as from August 2015. The other thermal facilities reported good performance.
The call rate at the Galion peaking plant in Martinique was at a high level (32.9% in 2015 versus 24.5% in 2014).
Total production of the Thermal Biomass business in France amounted to 2 TWh, compared with 2.1 TWh in 2014. EBITDA stood at €83.9 million in 2015 (versus €84.3 million in 2014).
Signing of amendments to contracts with EDF
Amendments were signed with EDF in 2015 and early 2016:
- for emission treatment at the Albioma Le Gol plant (total investment of €81 million). A similar file was sent to EDF for the Albioma Bois-Rouge plant;
- for compensation for the extra costs incurred since 2013 by Albioma Le Gol in connection with combustion by-products and liquid effluents. A similar request has been sent to EDF for the Albioma Bois-Rouge plant.
Albioma's projects at the heart of the energy transition of the French overseas territories
The French law on energy transition approved in August 2015 has set out an ambitious renewable energy target in each of the French overseas departments at 50% by 2020. Albioma will be a major player in helping to achieve this target, through its new 100% biomass projects and by gradually converting bagasse/coal plants into bagasse/biomass plants.
The construction of the first 100% biomass plant in the French overseas territories, Albioma Galion 2 in Martinique (with an installed capacity of 40 MW), began in the second half of 2015 and its commissioning date is scheduled for summer 2017. The project, 80%-owned by Albioma, will use bagasse, other forms of local biomass and imported wood pellets. Of the total €170 million investment, €120 million originated from a 20-year bank loan signed in April 2015.
The operating licence for the Saint-Pierre combustion turbine (Reunion Island) is pending. This facility with an installed capacity of 40 MW, 51%-owned by Albioma, will operate mostly on ethanol derived from sugar cane and produced locally. The commissioning date is scheduled for end-2017 and will require a €55 million investment.
Photovoltaic plants delivered good performance
Photovoltaic plants performed well, enabling them to generate 98 GWh of electricity, despite less favourable weather conditions in the Caribbean and Indian Ocean.
In April 2015, Albioma acquired photovoltaic plants on Reunion Island with an installed capacity of 3 MWc. These plants reported performance in line with expectations.
EBITDA for the Solar Polar business was €32.6 million for the year compared to €32.7 million in 2014 (excluding €3.9 million related to the settlement of a dispute).
Anaerobic Digestion
The industrial performance of the first two facilities (Tiper Méthanisation and Cap'ter Méthanisation) has made steady progress. Sainter Méthanisation, the Group's third plant, was commissioned in April 2015. Despite the tariff adjustment published in October 2015, the profitability of the Anaerobic digestion business (3 MW) remains insufficient.
Mauritius
High performance facilities
Facilities in Mauritius reported a high availability rate at 92.3%, compared with 93.2% in 2014. Electricity generation remained stable at 1.1 TWh.
The business recorded EBITDA of €3.1 million (corresponding to the Group's share of income from associates) in 2015 (versus €2.8 million in 2014).
Albioma has undertaken two innovative projects with its sugar producer partners. At the Bellevue plant, the thermal recovery of sugarcane straw will reduce the amount of coal used by 10%. At the Savannah plant, the Carbon Burn Out project will enable the recovery of unburned coal residues to be used in the manufacture of cement and concrete.
Brazil
Strong industrial performance in a challenging macroeconomic climate
For its first full year of operations in 2015, the Albioma Rio Pardo Termolétrica plant exported 114 GWh to the Brazilian electricity grid, up from 2014 (105 GWh).
The acquisition of Codora Energia was finalised in August 2015. Since Albioma acquired ownership of this plant, Codora Energia has exported 72 GWh of power, up from 56 GWh for the same period in 2014.
In 2014, Albioma Rio Pardo Termoelétrica had benefited from exceptionally high tariffs for the sale of electricity. In 2015, these tariffs fell sharply, due to both the contracts entered into in 2014 and the fall in prices on the free market related to the economic recession. This price effect resulted in a €7.4 million reduction in income.
To reduce the impact of the high volatility of spot prices, Albioma put in place a strategy to secure 70% to 80% of long-term sales. In this context, two 20-year contracts were signed with high tariffs of BRL 212/MWh for Albioma Rio Pardo Termoelétrica and BRL 278/MWh for Codora Energia. Currently, around 50% of future sales are secured at inflation-indexed guaranteed prices on the regulated market.
EBITDA for Brazil totalled €4.6 million in 2015 (versus €12 million in 2014).
With a very selective approach, Albioma continued its development in Brazil, where the difficult macroeconomic context is likely to generate opportunities to acquire high-quality assets, and confirmed its target of one new project every 12 to 18 months.
Sound financial position
At the end of 2015, consolidated gross financial debt amounted to €556 million (versus €539 million at end-2014) taking into account the acquisition of Codora Energia in Brazil and the photovoltaic plants on Reunion Island. Project debt totalled €476 million (versus €459 million at end-2014).
At the end of 2015, the Group's cash position came in at €54 million (including €6 million in security deposits). Consolidated net financial debt was €502 million (versus €431 million at end-2014).
The Group has the appropriate financial leeway to implement its ambitious investment plan for the period ending in 2023.
Dividends
The Board of Directors will submit to the Shareholders' Meeting a proposal to distribute a dividend of €0.57 per share, with an option for 50% to be paid in new shares.
Outlook and strategy
For 2016, the Group announced its targets for EBITDA of €122 million to €130 million and net income (Group share) of €25 million to €30 million.
The Group continues to implement its strategy and its €1 billion investment plan for 2013-2023, which is expected to result in the doubling of net income (Group share) over the period.
Next on the agenda: revenue for the first quarter of the 2016 financial year, on 27 April 2016 (before trading).
