Genneia, a leader in renewable energy generation in Argentina, reports its financial performance for the first half of 2020
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Sales and EBITDA increased by $ 22% and 27% respectively compared to 2019. In the second quarter, more than 90% of sales you are denominated in dollars under long-term contracts (PPA, according to its acronym in English ). This performance is largely explained by the wind farms Pomona Madryn II and I and II; opened in the second half of 2019 with a total of 264 MW installed capacity. Thus Genneia EBITDA reached $ 250 million in the last twelve months.
If an assessment of the sector is performed, it is necessary to emphasize the strength and quality presented by renewable contracts. Over 50% of revenues Genneia are backed by the guarantees of the FODER and Sovereign, counting some contracts backed by the World Bank.
In addition, wind and solar farms have priority dispatch on the network, so are not directly affected by fluctuations in energy demand nationwide. Because the power generation industry was declared as an essential activity in the current scenario of pandemic and social isolation, Genneia operations could develop normally in the period from April to June, holding its financial performance.
Renewable investment plan of the company for more than USD 1,000 million is coming to an end. By the end of 2020, the company will complete the construction of three wind projects in Chubut. Two of these projects are outside the scope of corporate investments, under a scheme-Recourse Project Finance Non. Projects already have secured funding from the KfW German Development Bank and the guarantee agency Euler Hermes German export. In addition, on the same site, a project develops smaller scale, in order to increase the portfolio of private contracts. The project is supported by KfW through a corporate medium-term loan.
In this context, the company systematically reduced the ratio of net debt to EBITDA, which represents 3.5x in the last quarter. Also Genneia continues to demonstrate its financial flexibility, which is evident with access to the local capital market with two bonds last May Along with this, the certification of the solar park Ullum I, II and III as the first photovoltaic park in the country authorized to issue carbon credits and recent agreements MATER, together with companies like Bimbo, to supply 100% of its production renewable sources, show that Genneia continues to generate major milestones in the field of renewable energy.
About Genneia
Genneia is a leader in providing sustainable energy solutions, which exceeds the horizon of the 1,200 MW power generation in Argentina. It owns more than 35% of installed capacity in wind energy, making it the number one in the sector. The company has a superior power to 610 MW of wind power with wind farms Rawson, Trelew, Madryn, Chubut Norte, Villalonga, Pomona, Necochea; and reaches 700 MW of renewable energy, considering its solar park Ullum (82 MW) located in the province of San Juan. In addition, wind projects Chubut Norte III (57 MW) and North Chubut IV (83 MW) are under construction in conjunction with the company PAE; and Chubut Norte II (26 MW) project destined for the Term Market Renewable Energy, ie, bound for private clients. Genneia also owns and operates six thermal generators (573 MW).