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Elecnor has sold its wind and solar subsidiary Enerfín to Statkraft for an enterprise value of €1.8bn. Given that the cash consideration is almost equivalent to the current market cap of €1.46bn, this is a significant deal for the company. The share price isup by >7% (at the time of writing). We will incorporate the deal into our estimates, with our model currently under review.
Companies: Elecnor (ENO:BME)Elecnor S.A. (ENO:MCE)
AlphaValue
Elecnor reported 9M 2023 results largely in line with the street and our expectations. Sales were driven up by robust demand for renewable energy, where Elecnor is involved in the construction of wind and solar farms in international markets. Net income improved marginally while the order backlog reduced slightly vs the H1 2023. The management reiterated the full year outlook hence the share price reaction was muted (+2.6% at the time of writing). We will incorporate the results into our model b
Elecnor reported H123 results ahead of the street’s and our expectations. Sales and EBITDA reported double-digit growth driven by a strong showing in both the domestic and international markets. However, Enerfin (wind subsidiary for which the management is looking for a financial partner) reported a decline in revenue due to the tough comparable base. The share price reaction remained muted (+2.14% at the time of writing). We will increase our estimates to incorporate these results.
Elecnor reported Q1 FY23 results largely in line with our expectations. Revenue grew by 15% yoy, with the strong growth in the Services and Projects business offsetting the softness in the wind energy business (Enerfin); the latter was impacted by lower energy prices in Spain. The order backlog remained broadly stable at €2.5bn vs Q4 FY22. The management confirmed the outlook for 2023 with sales and profit expected to exceed the 2022 levels, underpinned by the execution of the robust order backl
Elecnor reported FY22 results ahead of the street and our expectations. Sales grew by 16% yoy driven by robust growth across the domestic and international markets. The order book grew by 5% yoy supported by the signature of renewable energy projects. For FY23, the management expects sales and profit to be higher vs the previous year. We will increase our estimates to incorporate the strong FY22 performance but are likely to maintain our cautious view on the stock.
Elecnor reported mixed 9M FY22 results with a beat on revenue but a miss on profitability. While revenue and net income grew 21% and 16% yoy, respectively, the net margin fell by 10bp to 2.8%. The order backlog of €2.4bn was slightly down from €2.5bn a year ago, but flat vs H1 FY22. The management reiterated the FY22 outlook of a business performance exceeding last year’s levels. We maintain our cautious stance on the stock.
Elecnor reported H1 22 numbers ahead of our estimates, registering double-digit growth across sales, EBITDA and net profit. Elecnor also recorded healthy commercial contract wins as the order backlog increased 4.3% vs H2 21. Management reiterated the FY22 objective to exceed the results achieved in 2021. We will slightly increase our estimates, but are likely to maintain our cautious stance on the stock.
Elecnor reported Q1 22 results ahead of our expectations. The group continues its show of strong sales and order development, with double-digit growth across both segments and geographies. Moreover, the energy crisis in the EU due to the war in Ukraine has accelerated trends for decarbonisation of the energy grid, thereby providing mid-to-long-term tailwinds to the group. No surprise management has reaffirmed its growth outlook for 2022.
Elecnor reported mixed FY21 results with beats in revenue and EBIT, but a miss on net income due to higher interest expense. Order-book increased 10% yoy, driven by the signing of major power generation and transmission construction contracts in Australia, the US and Brazil. For 2022, management expects growth to be underpinned by increased government spending under stimulus packages promoted by the EU and the US. We maintain our positive stance on the stock’s valuation.
Elecnor reported its 9M FY2021 results, with headline figures coming in ahead of our expectations. Revenue was up c.29% yoy to €2.1bn vs. €1.61bn in 9M FY2020. The group’s net income also improved to €60.9m (9M FY2020: €55.9m). Order backlog stood at €2.5bn, slightly down from €2.6bn at the end of H1. Management re-affirmed its FY2021 outlook, to surpass last year’s levels. We will revise upwards our estimates and target price; we maintain our positive stock recommendation.
Elecnor reported strong H1 FY2021 results, ahead of our expectations. The group recorded a revenue growth of >30% yoy, on the back of higher construction activity and project start-ups/ramp-ups across the home and international markets. Elecnor also recorded healthy commercial contract wins as the order backlog increased c.4% vs end Q1. We will incorporate the results into our estimates but maintain the positive stock recommendation.
Elecnor’s Q1 FY2021 results came in slightly ahead of our expectations. Revenue grew c.8% yoy thanks to projects in both domestic and international markets. The group’s order backlog increased by c.10% from Q4 FY2020 levels with contract wins across geographies — international operations accounted for c.73% of the backlog mix. Management re-affirmed its outlook for 2021 performance to exceed the 2020 levels, underpinned by the robust order backlog along with the essential and strategic nature of
Elecnor reported a flat FY2020 top line, on the back of the recovery in core operations such as energy generation and transmission, and telecom infrastructure during the second half of the year. The group’s order-book (€2.27bn) improved marginally from last year with c.73% of contracts related to international markets. Looking ahead, management expects a better performance in FY 2021 supported by a strong order pipeline, the strategic nature of operations, and geographic diversification.
Elecnor reported a c.11% yoy decline in Q2 FY20 top-line amidst the COVID-19 related disruption / lockdown restrictions. Order-intake during the period also remained weak. In H2 FY20, management expects a better performance, as its core activities (power generation and transmission, and telecom infrastructure) fall under the essential category and should show some resilience.
Companies: Elecnor S.A.
A weak end to Q1 FY20 for Elecnor, as the top-line slipped into negative territory, impacted by the COVID-19 outbreak. We expect the next quarter to be more challenging, as numerous countries adopt containment measures. The (over) diversified group, however, seems to have sufficient funds (cash + credit lines) in place to navigate through the crisis.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Elecnor S.A.. We currently have 9 research reports from 1 professional analysts.
The FY24 year-end update is very upbeat signalling trading being materially ahead of expectations, with a better-than-expected profit out turn and stronger cash generation. It continues to strengthen margins through efficiencies and investment in modern equipment. The order book remains close to record levels providing a robust view of future forecasts. In FY24E we upgrade EPS by 11% and in FY25E a significant upgrade of 27.6%. It looks capable of declaring a dividend in FY25 as well as manageme
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Cavendish
Another Good Year of Diversified Growth with More to Come in 2024 CCapital have released their Q1 operating results. Overall, revenue has come in slightly lower than expected at $80.2m vs TamE of $85.9m but is largely tracking in line with our FY24 annual estimate and we note the company has maintained guidance. Drilling revenue for this quarter was impacted by a fall in utilisaztion rates as well as general remobilisation geographically but we expect a strong recovery throughout the year as k
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Tamesis Partners
FY23 results show very strong growth over FY22, driven by strong Structural Steel activity, with results slightly ahead of upgraded profit expectations, while stronger than expected cash flow resulted in an unexpectedly generous dividend of 33p (offering a FY23 yield of 7.0%). The group now has net cash of £22.1m and is debt free and is therefore in a strong position for potential M&A activity. Following the recent £90m of new orders to increase the order book to record levels we conservatively
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Plant Health Care announced it has signed a distribution agreement with AMVAC, an American Vanguard Company, to support commercialisation of novel fertiliser products incorporating Plant Health Care's Harpinαβ in China starting in 2024. The novel product combines Harpinαβ technology with an AMVAC fertiliser and is expected to help growers improve crop quality and yield as part of an integrated and environmentally responsible crop production programme. AMVAC continues to evaluate Plant Health Car
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discoverIE’s March year-end update confirms a strong operational performance in challenging markets. Following two years when sales increased by +48%, FY 2024 Group sales were +1% ahead of 2023 at CER (reported -3%) driven by a +2% contribution from acquisitions and organic -1%. As expected, organic growth returned in the later part of the year (Q4 +2%, +11% sequentially) and the order book has reverted to normalised levels of c.4.5 months’ sales, which – combined with a continuing strong pipeli
Companies: discoverIE Group PLC
Severfield’s trading update indicates that FY23 results are expected to slightly exceed market expectations and the company ends the year with a record UK and Europe order book. Furthermore, with a positive trading outlook and net debt coming in lower than expected, Severfield has announced a £10m share buyback, highlighting the cash-generative nature of the company and management’s confidence in its position. The stock trades on an FY25 P/E of less than 6x and yields 7%, which we believe appear
Companies: Severfield Plc
Edison
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Canaccord Genuity
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SP Angel
Acquisitions have been an important element of Severfield management’s growth strategy, with the aim of adding new products, sectors and regions to what we have identified as exciting long-term organic opportunities. In this Spotlight report, we focus on the group’s targeted M&A approach, highlighting three significant deals.
Progressive Equity Research
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
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Hardman & Co
Liberum
Invinity’s update on discussions with strategic investors reveals interest from multiple parties. While this has slightly delayed finalising an agreement it increases the potential for a better outcome. Although details are unknown at this stage, we think there is enough in the statement to be comfortable that any agreements will be consistent with the company’s strategy of growing market share in core markets and using a licencing and royalty model in other markets.
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Longspur Clean Energy
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