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FY 2024 Half-year results: EBITDA margin of 62%, above the Group’s 2026 target, Confirmed financial strength to support the Group’s growth drivers

22 March 2024

Pontpierre, France, March 21st 2024 – FDE (Euronext : FDE – ISIN : FR0013030152), a carbon negative energy producer, confirms during the first half of 2024 the profitability of its activities in a volatile energy and its 2026 objectives.

 

Consolidated accounts

In Euro Thousands (k€)

  

H1 2023/2024

  

H1 2022/2023
Revenues 17 395 21 346
EBITDA

% of revenues

 10 837

62%

 15 759

74%
Operating Income

% of revenues

 8 968

52%

 14 601

68%
Financial Result (1 394) (512)
Taxes (1 410) (3 760)
Net Income Group share

% of revenues

Minority interests[1]

Net Income

 6 302

36%

(139)

6 163

  

10 413

49%

(84)

10 329

 

 

Ongoing costs control in an inflationary environment

On December 31st 2023, FDE posted H1 2024 sales of €17.4m, boosted by the good performance of its cogenerations in the Hauts-de-France and Wallonia regions, and the increase in the volumes of energy produced from the 15 MW solar plant in Tritteling (+13% increase in volumes). The long unavailability of the GRTgaz gas grid, which prevented FDE from selling the forecasted volumes of abandoned mine methane, has penalised the Group’s performance, in a volatile environment.

EBITDA reached €10.8m, with an EBITDA margin of 62%, above the Group’s objective for 2026, as the Group continues to control its costs, with the cost of goods stable over the half-year (excluding €979k of previous ARENH rights retroceded on December 31st 2022). SG&A (excluding recognition of free awarded shares under IFRS) amounted to €3.4m, following the increase in staff from 29 to 36 (excluding Greenstat) to support FDE’s future developments.

Operating profit has reached €9.0m, or 52% of sales.

With higher financial expenses related to the €45m green bonds in order to develop FDE’s low-carbon energy projects, and current and deferred tax of €1.4m, the Group’s net profit has reached €6.3m, compared with €10.4m on December 31st 2022.

 

A solid financial structure to support the Group’s developments and share buyback programme

In H1 2024, FDE confirmed its ability to generate operating cash flow of €10.5m (before variation in working capital of €2.6m). This operational excellence has again strengthened the cash position of the Group, which has repaid bank loans amounting to €4.9m, including the bridge financing for the 15 MW photovoltaic project and the BPI-SAARLB loan for Gazonor.

The Group has cash and cash equivalents of €40.1m (+€13.5m compared with December 31st 2022), a conservative gearing ratio of 28%, and a net debt/EBITDA ratio of 1.04x, enabling FDE to finance its growth at a competitive cost of capital.

FDE investments in its core energy businesses have resulted in significant recurring cash flow generation and have strengthened the Group’s balance sheet. In the opinion of FDE’s board of Directors and management, FDE’s businesses as a whole are worth significantly more than its current market capitalisation.

In this context, and under the authorizations currently in place, FDE will re-launch a share buyback programme, thereby increasing the intrinsic value per FDE share for the benefit of existing shareholders, without affecting its financing capacities for the 2026 development plan.

Ongoing developments across the entire Group’s portfolio

On the last semester, FDE has maintained its investment policy, deploying an additional €4.4m, mainly to expand its cogeneration portfolio in France, with some additional installations planned in the coming months. The Group is also continuing to optimize the value of the revenues associated with its current production sites, while maintaining a high level of visibility on its cash flow generation.

In addition, Cryo Pur’s development in Norway is accelerating, with the contracting of key partnerships for new lands and feedstocks, and the selection of the digesters manufacturer, that will enable the new LBG and Bio-CO2 production unit of 100 GWh/year capacity in Stavanger to contribute to cash flow generation from 2025 onwards. The site for the second LBG and Bio-CO2 production plant, located in Bergen, has also been secured.

Lastly, FDE is finalizing the reorganization of its new subsidiary, Greenstat, to accelerate the Group’s green hydrogen and solar energy developments and consolidate its position as a key player in Europe’s energy transition.

This hydrogen portfolio fits in perfectly with FDE’s strategy of developing the production of carbon-free hydrogen, and in particular natural hydrogen, in which FDE will continue to invest internationally, but more importantly in France on the 3 Evêchés permit where the tendering period has now ended, leading to the launch of the next development phase by end of 2024.

 

 

FDE confirms its FY 2026 objectives of annual revenues of more than €100 million, and an EBITDA above €50 million, combined with over 10 million tons of CO2eq emissions avoided per annum

 Next announcements:

Q3 2022 sales – April 24th 2024

[1] Results of Cellcius dedicated to the operating of the Creutzwald thermal solar plant (51% owned by FDE and 49% by Énes) and FalkenSun dedicated to the operating of the photovoltaic solar plant of Tritteling (75% owned by FDE and 25% by Mercury Advisors) and Cryo Pur dedicated to LBG and Bio-CO2 (95.08% owned by FDE and the rest by minority shareholders).

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Promises won't impact
climate change.
Your local resources, will.

Climate change is an undeniable reality. We can already see its serious consequences for our planet. It is now urgent to act.

At FDE, we refuse to participate in initiatives that generate pollution beyond our borders, even if they reduce the carbon footprint of our local territories. Whether it is a question of carbon footprint or pollution, there are no limits.

It is our duty to build sustainable energy solutions that move towards global carbon neutrality. Today, the most resilient and sustainable energy solution is even more self-evident: it is imperative that energy remains local, within short supply chains, as close as possible to the needs of local communities and consumers.

Considering these, at FDE, we are taking actions and offering tailor-made, local multi-energy solutions.

By making the most of local resources, our offer enables us to provide territories with energies with a triple benefit: reduced carbon footprint, economically competitive and contributing to the socio-economic development of the area. We choose abandoned sites, make the most of the potential of local suppliers and service providers, and participate in a local center of expertise that involves universities, local authorities and associations in the local energy project.

FDE lacks neither the resources nor the know-how to deploy tailor-made energy solutions for everyone and for the planet.

Our engineers embrace the energy transition with a pragmatic view.

Recovering abandoned mine gas avoids fatal gas emissions into the atmosphere, while local coal gas reduces the need to import much more carbon-intensive gases. Abundant solar energy is both local and renewable.

To support the energy transition, at FDE, we are constantly innovating, looking for new solutions for the future, such as hydrogen, a decarbonized energy, or CO2 sequestration in coal.

In addition, all energy produced by our Group is designed to be more virtuous. All these processes therefore make FDE the only French energy producer with a negative carbon footprint.

HSE POLICY

In accordance with its values and code of ethics, and with the aim of pursuing the objective of:

  • Guarantee the integrity of our assets,
  • Ensure a safe and healthy working environment for its employees and subcontractors,
  • Guarantee the health and safety of all personnel working on and off-site,
  • Limit environmental impact.

 

FDE wishes to promote the following HSE principles:

Identify, prevent and control impacts and risks to health, safety, security and the environment,

Develop the company's activities in a sustainable and eco-responsible manner,

Improve the working environment for its employees and subcontractors.

Consequently, FDE undertakes to:

Ensure the rigorous application of regulatory procedures in force with respect to safety, health, environment and the preservation of public security,

Impose operational management with advanced criteria for environmental protection, pollution prevention and energy optimization, as part of the ecological transition,

Systematically verify compliance with HSE principles through audits and practical exercises, with the aim of continuously improving the system and its performance,

Define indices and performance indicators for monitoring HSE activities and promote benchmarking to identify areas for improvement,

Encourage employee participation and involvement in health, safety and environmental protection processes through training and creation of tools for sharing experience and knowledge.

This culture of risk prevention and control applies to all employees, partners and suppliers. It involves setting concrete objectives and deploying action plans as part of a continuous improvement process to better anticipate tomorrow's challenges. This policy is reviewed annually, as are the associated indicators and targets.

Antoine FORCINAL
Directeur Général,