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Summary of Highlights:
On 30 April 2018, the Polish Power Exchange published new indices for green certificates traded on the Property Rights Market.
- The aim of the changes is to account for significant increases, both to date and in the future of IPPs active in the Polish Renewable Energy market and accordingly, in the increased trading volume of green certificates.
- The changes have resulted in increased market volatility with a general upwards trend line.
The company hedged approximately 50% of its electricity sales for the months May-December 2018.
- Future prices indicate that the market will begin to stabilize towards the latter end of H2-2018, when purchase prices from IPPs will range roughly between 180-200 Polish Zloty.
- This is a strategic step from Energix executives, demonstrative their effective management and navigation of global energy market trends.
After the release of its quarterly update for the reporting period ending March 31 2018, Energix reported the following significant milestone on 23 May 2018:
Energix announced that it has increased its stake in the Ilawa Wind Energy project in Poland from 75% to 100%. This corresponds to an increase in installed capacity from 9.9MWp to 13.2MWp.
- As a result of the acquisition the company expects to report in Q2-2018 an additional one-time pre-tax profit of NIS 7M.
- Purchase price paid for the additional 25% holding in the facility was NIS 3.6M.
Energix released its quarterly report for Q1-2018 on 14 May, 2018 detailing the following:
EBITDA for Q1-2018 totaled NIS 26.4M, an increase of 78.4% from Q1-2017.
- The company has updated its expected results for 2018 to approx. NIS 164M
We increase Energix's equity value to $486.2M / NIS 1,736M corresponding to a target price ranging between NIS 4.38 and NIS 4.88; a mean of NIS 4.61.
- Equity value to EBITDA ratio 13, compared with a 15.0 industry multiple. In other words, Energix has additional growth potential.
- For a detailed breakdown of our valuation methodology for the Company please refer to our Initiation of Coverage report of 25 June 2017.
About the Company - Energix Renewable Energies Ltd. (hereinafter "Energix" or "the Company") is a renewable energy company, currently active in the field of Solar Photovoltaic (PV) and Wind Energies. As one of the largest Israeli Independent Power Producers (IPPs), the company initiates, develops, constructs and owns long-term renewable energy projects. Once it has secured production rights through government tenders, Energix sells the generated electricity to utility companies who distribute electricity to end users. Energix shares have traded on the Tel Aviv Stock Exchange since 2011.
Read the full report here.
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