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The renewable energy business remained resilient to the COVID-19 outbreak - GCAP

5fb39a68ec58c
BM.GE
17.11.20 14:00
831
The Renewable energy business operates three wholly-owned commissioned renewable assets: 50MW Mestiachala HPPs32, 21MW Hydrolea HPPs and 20MW Qartli wind farm. In addition, a pipeline of up to 172MW renewable energy projects is under advanced stage of development. Following the buy-out of the 34.4% minority shareholder on 25-Feb-20, the renewable energy business is 100% owned by Georgia Capital – the official statement from GCAP stated.

According to the statement, the renewable energy business remained resilient to the COVID-19 outbreak, as up to 60% of electricity sales during 9M20 were covered by long-term purchase power agreement (PPAs) with a Government-backed entity, while the rest of electricity sales were sold to direct consumers. The average market sales price was up 34.5% y-o-y during non-PPA months (May-Aug) for Hydrolea and Mestiachala HPPs on the back of electricity market deregulation. PPAs with fixed purchase price run throughout the whole year for wind power plants and for eight months (from September through April) for HPPs.

3Q20 revenues were up 64.5% y-o-y to GEL 16.0 million (up by GEL 22.8 million to GEL 34.9 million in 9M20):

➢ The 21MW Qartli wind farm contributed GEL 4.7 million to 3Q20 revenues on the back of 23.2 GWh electricity generation (GEL 14.1 million to 9M20 on the back of 69.8 GWh generation, translating into a capacity factor of 51%);

➢ The 21MW Hydrolea HPPs, where 9MW Akhmeta HPP resumed operations in mid-July 2020 after being temporarily offline due to planned rehabilitation works, added GEL 1.7 million to 3Q20 revenues (GEL 5.5 million in 9M20);

➢ 3Q20 revenue from the Mestiachala HPPs was GEL 9.6 million (9M20 revenues at GEL 15.2 million), deriving mainly from the 30MW Mestiachala HPP (business Interruption for 20MW Mestiachala HPP amounted to GEL 1.7 million in 3Q20 and GEL 4.3 million in 9M20). Mestiachala HPPs have seasonally peak generation levels during Jul-Sep. The restoration process is still ongoing on the 20MW HPP.

“The increase in operating expenses in 3Q20 and 9M20 reflects the addition of expenses as a result of acquisitions of Qartli wind farm and Hydrolea HPPs in 4Q19. 3Q20 EBITDA was up 53.8% y-o-y to GEL 13.4 million (up almost 3x to GEL 27.5 million in 9M20). EBITDA margin was 83.8% in 3Q20 and 78.8% in 9M20 – said the report - The borrowings were up 4.5% in 3Q20 mainly due to GEL depreciation. Net loss amounted to GEL 5.8 million in 3Q20 and GEL 10.2 million in 9M20, primarily due to GEL 10.0 million non-recurring expenses incurred for refinancing activities in connection with US$ 250 million green bond issuance in Jul-20“.