Acciona Energia considers giga asset rotation as H1 profit crashes 84%

Spanish renewables pure-player Acciona Energia (BME:ANE) has marked around 6 GW of its global capacity for sale across several potential transactions, but said it would execute only some of those deals “with the aim of providing sufficient financial flexibility in the medium term”.

While the plan for asset rotation is not new, the novelty is that the company is considering putting the sale sign on close to half of its total installed and consolidated capacity in Spain and abroad. It said that it is currently working on several potential transactions, all of which are in different stages of maturity, but intends to "crystallise" only some of them.

Acciona Energia timed the announcement to coincide with the presentation of its weak first-half-year financial results and the notice of the first sale agreement in the 2024-2025 asset rotation programme.

As previously reported, Acciona Energia’s 175-MW portfolio of hydroelectric plants in Spain will be acquired by Elawan Energy for EUR 287 million (USD 310.9m), pending regulatory clearance.

At the same time, the company’s attributable net profit for January-June plunged by 84% year-on-year to EUR 65 million as the total revenues -- from power generation and other sources -- contracted by 24.2% mainly on extraordinary conditions in the Spanish market.

As Acciona Energia explained, the combination of higher hydro resources and low demand during the spring season in Spain brought down pool prices to their lowest level on record and resulted in heavy curtailments that the company chose not to generate below its marginal cost.

Generation revenues in Spain totalled EUR 379 million, 33.5% lower than in the same period last year. International generation revenues rose by 10.9% to EUR 371 million. Including other revenue sources, the worldwide takings totalled EUR 1.33 billion.

When all of the company’s markets are taken into account, the average power price dropped by 27.3% to EUR 62.7 per MWh.

The results for the period were also impacted by impairments and other non-recurring items.

Overall EBITDA dipped by 39% to EUR 419 million, reflecting the prices captured by the generation business in Spain, where EBITDA nosedived by 63.3%. The EBITDA of the international business remain about at the same level as in the year-ago period.

At the end of June, Acciona Energia had 13,944 MW of the total installed capacity, an increase of 13.7%. Its consolidated capacity rose by 13.8% to 12,329 MW.

Total power production reached 13,441 GWh, higher by 7.7%. Consolidated production went up by 14% year-on-year to 11,945 GWh.

Acciona Energia is currently building 1,734 MW of wind and solar farms around the world, in line with its target to install 1.7 GW of renewables in 12 months for the second year in a row.

(EUR 1.0 = USD 1.083)

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