Enerside Energy announces asset sales that will generate more than €50M of revenue in two years

COMPANY AGREES TO SELL 400MW IN 2 PROJECTS IN ITALY AND BRAZIL

  • The acceleration of asset turnover is part of the Impulsa Plan announced today to the market.
  • The new plan focuses on those businesses that provide greater profitability such as development, asset rotation and activity as an IPP.
  • The recent sales of two projects in Italy and Brazil and the processes it has advanced to sell an additional 300MW, already guarantee a high fulfilment of the plan’s objectives for this year.
  • As part of the Impulsa Plan, the company also announces the acquisition of a portfolio of 37MW of PMGD projects in Chile. This is the third inorganic transaction in two years, following two operations in Italy, where it has more than 2GW of assets under management. 
  • The company focuses on its assets, where it has 6.8GW of photovoltaic and storage projects in Italy, Brazil, Chile, and Spain.

Barcelona, 11 January 2024. Enerside Energy, a Spanish company vertically integrated in the solar photovoltaic industry, announces asset sales that will generate more than €50M of revenues over the next two years. The acceleration in asset turnover is part of the Impulsa Plan, announced today by the company to the market.

Faced with a much more volatile geopolitical and macroeconomic context, the company presents a new Plan that focuses on the most resilient business lines capable of generating value and returns for shareholders, such as development, asset rotation and activity as an independent power producer (IPP).

For Enerside’s CEO, Joatham Grange, “thanks to the Impulsa Plan, we face the future with greater resilience, efficiency and flexibility, in order to continue supporting the energy transition and creating value for our shareholders”.

The new plan presents as basic pillars sustainable growth through strategic alliances and M&A, acceleration in asset rotation, and significant cost optimization thanks to a greater focus on own projects.

Enerside has already ensured that part of the asset rotation target for 2024 has been met, after agreeing at the end of 2023 to two sales in Italy and Brazil and already having other sales processes for more than 300MW in an advanced stage of negotiation.

The asset rotation acceleration plan expects to reach revenues of €20M in 2024 and more than €30M between 2025 and 2026.

Sales in Italy and Brazil

As part of the progress in meeting the objective of accelerating asset rotation, included in this new strategic plan, Enerside has successfully closed agreements for the sale of assets in Italy and Brazil in recent weeks.

In Italy, Enerside Energy has closed an agreement for the sale of one of the largest agrivoltaic developments in the country, located in the north of the island of Sardinia, in Palmadula. The sale agreement has been closed with an institutional investor, a leader in the development, construction, and operation of solar parks in Europe. The 400 MW Palmadula project (360MWp of solar photovoltaic and 40MW of battery energy storage) occupies an area of nearly 900 hectares, combining photovoltaic installations and energy storage batteries, with crop and pasture areas, and is estimated to reach the Ready to Build phase in 2025.

The company, which will receive payments from the transfer of the asset as the project reaches agreed development milestones, expects to close the transaction by the end of next February.

In Brazil, at the end of December, it agreed to sell the Itabira project in the state of Minas Gerais, for more than €3 million, to investment fund manager Suno Asset. The project, already in operation, has a capacity of 3.1MWp and a production of up to 4.5GWh/year of energy, and has been developed and built entirely by Enerside. The wind farm has been 100% financed with its own funds and has a 10-year inflation-indexed PPA with one of Brazil’s leading energy marketers.

With this operation, Enerside has strengthened its position in distributed generation (DG), a proven model that allows for shorter processing and construction times for wind farms while offering an attractive framework for investment. Thus, the company has managed to position itself as an important player in a segment in which it has other projects of its own and a mature pipeline of new opportunities that RTB is expected to reach throughout 2024 and 2025. It was precisely in Brazil where Enerside made its first sale in December 2021, the 280 MW Ribeiro Gonçalves wind farm, in the Ready to Build phase.

The company, which has taken advantage of a market window to obtain high profitability, will continue to carry out the Operation and Maintenance of the Itabira wind farm, ensuring its performance and production.

Investment in Chile

Enerside has also reached an investment agreement for a portfolio of 37MW in PMGDs (distributed generation) projects in Chile. The projects are in different stages of development, although 20MW are in the Ready-to-build phase and once built will generate recurring revenues for the group.

The investment will be made through the payment of cash and new shares of the company, which will carry out a non-monetary capital increase in the coming months and will be the third corporate transaction since the IPO in March 2022.

This transaction allows the company to have a portfolio of more than 70MW of PMGDs in Chile, of which 14MW are in operation and the rest in RTB or in a very advanced stage of development.

6.8GW under development, valued at over €250M

Enerside thus reinforces the continuity of its strategic line, thanks to the strength of having a project portfolio of 6.8GW, valued at more than €250M.

Currently, the company’s market capitalization stands at around €120M, which offers a high revaluation potential of +2x compared to the net asset value published last October (NAV) and the valuation published by analysts, who place the company’s value at more than €240M.

The company recently announced the renewal and extension of a treasury stock program that aims to reach €2M by 2024.

Reorganization to address the Impulsa plan

In recent months, Enerside has also reorganised its teams in order to face the next phase of growth with the aim of focusing on the most profitable areas of the business.

In this sense, the company is reducing its exposure to the construction activity of projects for third parties while promoting the development of projects for sale and to continue its activity as an independent power producer.

As part of this reorganization, new talent has been incorporated, such as Conrad Vellvé, Managing Director of Enerside EPC Services, who joined the management team in August 2023, or Jaume Solà, who has gone on to lead the finance department together with the investment department as the group’s new CFO.

About Enerside

Enerside is a vertically integrated company in the photovoltaic solar energy sector, which stands out for its strong industrial profile and geographical diversification in the markets with the greatest potential for solar energy (Spain, Italy, Brazil and Chile).

The company is currently immersed in promoting the development of 6.8 GW in differentiated, highly qualified projects with an advanced degree of maturity that give it an excellent position to capture the growth in demand and a great capacity to generate value, through the sale of projects in the RTB (Ready To Build) or COD (Commercial Operating Date) phase and with the direct exploitation of part of the pipeline as a producer Independent Energy Rating (IPP).

Learn more at  www.enerside.com

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