Grenergy Renovables SA (XMAD:GRE) Q2 2025 Earnings Call Highlights: Record Revenue Growth and ...

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Revenue: 438 million, an increase of 128% year-on-year. EBITDA: 86 million, reflecting a growth of 176%. Net Income: 35 million. Gross CapEx: 421 million, up 127% from the previous year. Net Debt: 850 million. Total Leverage Ratio: 3.8 times net debt to EBITDA. Corporate Leverage: 1.3 times. Cash Position: 283 million as of June 2025. Contracted Volumes: Increased by 62%, representing 87% of total electricity production. Realized Prices: 44 per megawatt hour. Installed Capacity: Decreased by 4% to 914 megawatts. Production Output: Increased by 36%.

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Release Date: September 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Grenergy Renovables SA (XMAD:GRE) achieved a significant asset rotation, selling phases 1 to 4 of the Oasis of Atacama project for an enterprise value of approximately $1.4 billion. The company reported a 128% year-on-year increase in revenues, driven by successful M&A transactions and asset rotations. Grenergy secured financing for 3.5 gigawatt hours of battery energy storage systems (BESS) for the Elena project, marking it as the largest BESS plan in a single location. The company is advancing its Greenbox project, a standalone division for Europe, with a pipeline of 32 gigawatt hours across six countries. Grenergy's financial performance was strong, with EBITDA reaching 86 million, reflecting a 176% growth, and net income of 35 million.

Negative Points

The company's total installed capacity decreased by 4% due to asset rotations in Chile. Realized prices for electricity slightly decreased to 44 per megawatt hour, impacted by forex fluctuations. There is a delay in announcing tolling agreements, which has led to some investor expectations not being met. The CapEx for solar projects is expected to increase by 10-15%, potentially impacting future project costs. The company faces challenges in the standalone battery energy storage market, with time-to-market being a critical factor for project success.

Q & A Highlights

Q: Can you provide an update on the progress of tolling agreements and any new structures being considered beyond Spain? A: David Ruiz de Andres, CEO, explained that while there might have been expectations for announcements, the company is on track with its CapEx and asset rotation targets. They are working hard on tolling agreements, with several options in advanced stages. Announcements are expected before the end of the year, particularly in Germany and Spain.

Story Continues

Q: What is the strategy for the Elena project, given the separation of battery and solar components? A: David Ruiz de Andres, CEO, stated that Elena is a large project, and they opted for a fast-track strategy with the battery component to capitalize on high night-time prices. They secured a three-year project finance deal, allowing them to connect the battery earlier and generate revenue while finalizing PPAs for the solar component.

Q: What are the key drivers for the reduction in the stand-alone battery storage pipeline? A: David Ruiz de Andres, CEO, noted that the company is focusing on projects with a realistic chance of timely realization. They are recycling projects that may not meet this criterion and are actively seeking M&A opportunities to enhance their pipeline.

Q: Can you provide more details on the economics of the Greenbox battery storage projects and the risks involved? A: Daniel Lozano Herrera, Chief of Strategy and Capital Markets Officer, explained that revenue streams vary by market, but they aim for simplicity in financing. They target tolling agreements of 8-10 years, with fixed payments covering most of the battery's lifetime. They expect project IRRs of over 12% in Spain, excluding capacity payments.

Q: How do you see the evolution of power prices in Chile, particularly concerning PMGDs? A: Daniel Lozano Herrera, Chief of Strategy and Capital Markets Officer, mentioned that Chilean prices have been affected by a more diversified energy matrix, leading to lower average prices. PMGDs, which previously had higher prices, now have less impact on the overall average.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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