AUDAX EXTINGUISHES MORE THAN €100 MILLION OF DEBT
During the last week of July, Audax Renovables (Audax) worked to reduce its debt by more than 100 million euros. Part of the funds necessary for this purpose were raised through the sale of two renewable energy generation plants with a total installed capacity of 58.6 MW.
At the same time, the company paid off the first bond of 21 million euros issued in 2014. These two operations are part of the Group's debt reduction and are in line with the asset turnover strategy initiated by Audax and presented last month in May, on the occasion of Investor Day [+info].
In this first phase, a wind farm (Mudéfer) with an installed capacity of 57.6 MW and a photovoltaic park with 1MW capacity were sold; both are located in Spanish territory, the first near Tarragona and the second near Castellón.
At the same time, the Group is proceeding with the development of projects in the photovoltaic sector for 320 MW, 59 of which are already at a very advanced stage close to the start of work. Making use of a framework agreement signed with Banco de Sabadell, Audax intends to finance the works through the project finance mechanism.
As mentioned, Audax paid off the 21 million euros of debt contracted in 2014 with the first bond issue. The goal is to significantly reduce corporate debt so as to bring the corporate debt/EBITDA ratio to 1.5x by the end of 2022.
The growth in turnover, both in Spain and abroad, the high cash generation, the increase in margin, as well as the aforementioned asset turnover are levers to create good results.
The margin increase was possible thanks to long-term PPA power purchase agreements and more competitive prices compared to the market and the generation of renewable energy from its plants. During the first quarter of 2019, Audax Renovables also increased its 54% turnover figure, doubling its EBIDTDA compared to the same period last year; a trend that is expected to continue throughout the financial year.
The Group, in this new phase of growth, continues to pursue its strategic objectives for 2022, such as increasing the customer portfolio from 305 thousand to 500 thousand and reaching an energy distribution of 15 TWh. Furthermore, it expects to exceed 1,500 million euros in turnover, triple its current EBITDA and reduce the level of financial debt. The objective is to optimize the Group's resources in order to create value for shareholders.
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Audax Renovables is the result of the merger between Audax Renovables and Audax Energía. The result was an energy group operating in 8 countries (Spain, Portugal, Italy, France, Holland, Germany, Poland and Panama), with over 500 employees and a turnover of more than 1,200 million euros per year.
Audax Energia Italia was born in 2014; today it supplies gas electricity to over 55 thousand domestic and business customers.
