Acciona boosts renewable investments: 500MW in 2019, 1,110 MW in 2020-21


Bankinter | The best of Acciona’s 9M19 results is its new renewables capacity, the optimization of the Spanish firm’s financial structure and cash generation.

The company has also reiterated the guidelines for 2019 following these results: (i) Growth of single low digit in total EBITDA and high single digit in homogeneous EBITDA; (ii) Net Debt / EBITDA <4.0 and (iii) Double digit growth in dividends per share.

We are still betting on Acciona. Reasons: (1) The renewables division will continue to drive group growth. Acciona is accelerating its investments in the division: 500MW installed in 2019, 1,110 MW insured for 2020-21 and an additional 9,000MW in projects under analysis, including the acquisition of Tenaska in the US; (2) The Infrastructure portfolio rises 6%, improving the visibility of the future revenues of this division; (3) The uncertainties of the Sydney contract and the ATLL concession have been clarified; (4) The sale of the services division will allow the value of this unit to crystallize and simplify the corporate structure.

The main challenge of the group is the restructuring of Nordex. The market interprets this acquisition as a defensive movement to protect its investment in the turbine producer. A waiting period is now open to see if you are able to recover profitability with this injection of Acciona funds. This greater uncertainty could slow down the evolution of the stock.

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