Ecoener 1H24 Results Analysis

The market is starting to believe that they will achieve it.

Analysis of the 1H24 results of Ecoener, an Independent Power Producer (IPP) specialised in renewable energy with a diversified portfolio of assets in hydroelectric, wind, and solar PV technologies and presence in Spain, R. Dominican, Guatemala, Nicaragua and Colombia (plus a pipeline in Greece, Italy, Poland, Italy and Ecuador - in addition to the current countries). It expects to 4x its MW in operation & construction in the period 2021-2025.

You can find the investment thesis and financial model of this company, which we have followed since its IPO of May 2021, on our website

Significant advances by Ecoener in the first half of the year with a considerable increase in generation and EBITDA thanks to the new 96MW photovoltaic plants connected in the Dominican Republic last year. The company is expected to complete its more than remarkable transformation by the end of the year with the commissioning of another 200MW, which will reduce its Net Debt/EBITDA metrics after what has been its highest investment period in history.

• Increase in revenues from €27.7MM to €41.1MM (+48% YoY) – Spain's contribution has decreased from 63% to 40%.

• EBITDA grows from €13.7MM to €18.5MM (+35%). For the first time, the largest contributor is Solar energy thanks to the MW that have come online in LatAm over the past 12 months.

• Net profit of €4.7MM, representing a 33% YoY increase.

• Energy generation has increased by 82% YoY (from 206 GWh to 376 GWh), mainly due to the start of production from large photovoltaic plants in the Dominican Republic.

• Ecoener has 353MW in operation as of today and expect to connect 200MW before the end of the year (El Carrizo will likely be delayed to 2025). It is important to note that there are no income/corporate taxes for the first 10 years in Guatemala

• This 1H24 has seen the largest investment in their history with €72.5MM. They maintain €69MM in cash and have a debt ratio of 9.7x EBITDA (Adjusted to projects under construction, 6.5x).