Wednesday, December 19, 2018
News
NEWS HOME
»
PRN INDIA
Frost & Sullivan Publishes Quarter 3 Update on Energix Renewable Energies
  SocialTwist Tell-a-Friend  
   

Significant increases in electricity and green certificate prices in Poland increased company revenue; all projects in development are progressing according to schedule; target price has risen to NIS 5.32.

TEL AVIV, Israel, Nov. 29, 2018 /PRNewswire/ --  The TASE analysis project was launched in 2016 in order to raise investors' awareness about TASE listed technology and life-science companies and the markets in which these companies operate, thus creating appropriate pricing and increasing the exposure of investors from Israel and abroad. Its goal is to encourage investments in these companies by improving understanding of these industries and companies in the market.

In order to maintain professional, independent and unbiased analysis, the companies signed an agreement with the TASE to receive the analysis services for an obligatory period of two years. The companies cannot withdraw from the project during this period. The analysis is funded by the companies surveyed with funding from the Chief Scientist and the TASE.

Summary of Highlights

Regulation of and demand for electricity and green energy, especially in Poland, supports the companies continued growth; 70% of company revenues are from the Polish market

  • Electricity and green certificate prices are continuing the rise of the past year, with the main reason for this being the economic growth in the Polish market, which has a direct impact on electricity consumption and in turn increases Energix revenues.
  • In June 2018, an amendment to the Renewable Energy Law was published in Poland, effectively regulating future tenders in which a tariff will be guaranteed to the winning applicant for 15 years. This has provided regulatory clarity in the Polish market.

Energix published its quarterly report on November 19, 2018 with the following highlights:
An increase in revenues in light of increases in electricity and green certificate prices and as a result of a price hedge implemented by the company; as a result of this the company updated its forecasted revenues (added an additional NIS 8M in 2018 compared to the forecast of the last quarter and NIS 24M if compared to the original forecast for the year) and now forecasts a total of NIS 238-246M in 2019.

  • Revenues from electricity sales for the first nine months of 2018 amount to NIS 89.5M compared with NIS 88.7M for the same period of 2017. During this period, weakening winds, and in turn, decreased wind power, was offset by a significant increase in electricity selling prices in Poland.
  • Revenues from green certificates have also increased significantly from NIS 9.3M in the first nine months of 2017 to NIS 23M for this period in 2018. This increase stems from a continued trend of green certificate price rise which started in the last quarter of 2017.
  • We are adopting the updated forecasts for 2018 and 2019 made by Energix as a result of the significant increase in electricity and green certificate prices. We emphasize that our estimate for 2019 is lower than the company's estimate by several percent points due to assigning 80% probability of completion for the U.S. project and due to the use of spot prices (more conservative) for electricity and green certificates in Poland. We see the price hedge implemented a few months ago as a strategic step taken by executives which have demonstrated a comprehensive understanding of the market and have a strong track record of long-term planning.

In light of the company's progress, the increase in electricity and green certificate prices, and thus the increased revenues expected in the beginning of 2019 we are updating our valuation of Energix to be NIS 2,011M / USD 544M (our last valuation amounted to NIS 1,736 / USD 486.2) corresponding to an updated target price ranging between 5.02 and 5.65 and on average NIS 5.32.

  • In terms of valuing a company through EV/EBITDA ratios, the accepted ratio for this industry based on 22 renewable energy companies that have a similar capital structure to Energix is 15. We estimate the EBITDA at the end of 2018 to be NIS 139M with the enterprise value amounting to NIS 1.9B. This results in an EV/EBITDA ratio of 14.1 for Energix.

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.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us:   Start the discussion

Contact:

Kristi Cekani  
Corporate Communications - Frost & Sullivan, Europe
P: +39.02.4851.6133
E: kristi.cekani@frost.com
http://www.frost.com

 

More News by PR Newswire India

Pittsburgh Only U.S. City Voted a Cool Place to Visit in 2019 by National Geographic Traveller

Virtuozzo Appoints Alex Fine as Company's Chief Executive Officer

NanoXplore Acclaimed by Frost & Sullivan for Developing a Technology that Produces Graphene from Natural Flake Graphite

Allergan Suspends Sales and Withdraws Supply of Textured Breast Implants in European Markets

Sprinklr's Social Media Management Platform, Experience Cloud, Acclaimed by Frost & Sullivan for Helping Brands Improve Customer Engagement

Polycom Acclaimed by Frost & Sullivan for its Next-generation Enterprise Communication Endpoints

Cision Names Valerie Lopez Vice President of Global Diversity, Equity and Inclusion

CleverTap and SonyLIV partner to improve user experience with video push notifications

Coinsquare launches into the European Union

LimeTray, a Restaurant Management Company, Completes 5 Years

Sun Life Financial to Acquire Majority Stake in Bentall GreenOak

Bentall Kennedy and GreenOak Real Estate announce merger to form Bentall GreenOak, global real estate investment platform

Mumbai Jewellery & Gem Fair to Showcase Statement Pieces From Prime Indian Jewellers

Essence takes on integrated media duties for Airtel

JA Solar Supplies Modules for the First 3MW Bifacial Mono PERC Double Glass Solar Project in Brazil

Metasys(R) 10.0 redefines modern building management

Lipofilling, Expanded Stem Cells Are a Valuable Alternative to Breast Implants

Locus Chain to Launch a Digital Asset Exchange Platform in Dubai

Wood Adhesives Manufacturers Focus their Growth Strategy on Furniture, Building and Construction Industries

The Commonwealth Of The Bahamas New Visa Waiver Policy for Indian Nationals Holding Canadian, Schengen, USA and UK Visas

Big Data and IoT Advancements Drive Growth Opportunities for Prognostics in Commercial Vehicles

Supermicro Report Highlights Environmental Impact of Today's Cloud-Scale Data Centers

HTC Partners With China Mobile To Expand Its 5G Vision Globally

HUAWEI P20 Pro Honoured at the Prestigious News18 Tech and Auto Awards for Best Camera Phone of the Year

Intermarché maps its own-brand organic products using SGS Transparency-One

Xevo Recognized by Frost & Sullivan for its Groundbreaking Xevo Market Automotive Commerce and Services Platform

TATA Projects Builds Prayagraj Airport Terminal in 11 Months

New Report Explores Digital Travel Commerce and Payments Needs in Latin America & Caribbean

ThroughPut Inc Announces the Formation of Executive Advisory Board, Welcomes New Members

27th Mega Eye Camp Held at Dera Sacha Sauda

Mumbai to get its First Professionally Managed Self-redevelopment Project by Wedevelopment

ARLANXEO's Keltan(R) KSA opens flagship online Customer Self-Service Platform

Western Digital Hosts 'Data Innovation Bazaar' in Association With 'Startup India' and 'Invest India'

GIIS Chinchwad Amongst 0.1% Schools in India to Receive Cambridge Affiliation

Munters Wins Three Large Air Treatment Orders in China

Datamatics Recognized as the Best Cognitive Technology Provider by Computer Society of India, Mumbai

Indiannica Learning Organizes English Language Training (ELT) Workshop and Product Launch

Nishchae Suri to Join the Global Management Executive Team at EdCast

'Marketing Success Formula' a New Book by Rajesh Srinivasan (an IIM-L Alumnus) Reveals Four Proven Steps for Business Growth

HopOn India to Participate in Comic-Con 2018

Lenovo and Intel's Much-anticipated Legion of Champions III 2019 is Here and Raring to Go

UST Global Awarded 'Top Employers in the APAC for 2019' by the Top Employers Institute

Singapore Post eCommerce Division Recognised at the 2018 Asia eCommerce Awards

Empire State Building And Interscope Records, Along With iHeartMedia, Promise A "White Christmas" With Annual Holiday Music-To-Light Show Featuring OneRepublic

Shoclef Presents Live Shopping in the Global Marketplace

Ski Season Opens at Lotte Arai Resort on December 15

AWE 2019 releases new theme: Falling in love with AI - Smart Life

New Report Shows Rapid Damage to Milk Nutrients by Light

Artificial Intelligence Is Propelling the Pharmaceutical Industry by Enabling Smart Drug Discovery Solutions

Few Months Into the Launch, NowPaaS is Already a Success; Has Serviced More Than 100+ Manufacturers

Cityzenith's Smart World Proâ„¢ Digital Twin Software Platform Selected for New Capital City in India

Frost & Sullivan Applauds VMware for Global Software-Defined Wide Area Networking (SD-WAN) Market Leadership

The Rise of Industrial IoT Drives the Adoption of Predictive Inspection Models in Non-destructive Testing

After New Delhi, Indus Towers now Deploys 50 Intelligent Poles in Vadodara Under Government's Smart City Mission

Systech Releases Expanded Cloud Platform to Secure Global Supply Chains

KC Valley: MEIL’s another Glory

Top IT Jobs in Demand in India, Revealed by Simplilearn Study

Maxim India Achieves the Distinction of India's First Progressive 3D Mainstream Magazine Cover - Courtesy OnePlus

Microland Wins Best Practice Award at the NHRD TecHeaRt 2018

Kerala Tourism Launches International Children's Online Painting Competition 2018 in Memory of Edmund Thomas Clint

Fosun's Protechting Program wins UNGC's China Network award for its Sustainable Development in China

Cross-border Data Flows Fundamental for AI Growth in India

Affle Wins Big at MOBEXX Awards 2018

BioNet reports on persistence of antibody responses of recombinant pertussis vaccines in the Lancet Infectious Diseases

Datamatics to Demerge and Separately List its Subsidiary Lumina Datamatics

Dunya Labs Brings EOS Blockchain to India With Catalyst

Exclusive Launch: Karan Wahi X Spoyl Collection

Join in the 2018 world-leading Tea Fair with the gracious invitation extended by Huajuchen

 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
INDIA WORLD ASIA
Pakistan violates ceasefire in J-K's Poo...
India, South Korea agree on redoubling t...
Whoever comes to MP, stays on here: Shiv...
Nobody needs Rahul's advice, says Minist...
Deadlock over Rafale continues in Parlia...
Delhi: BJP workers protest against Kamal...
More...    
 
 Top Stories
Turn your old, unwanted clothes int... 
Dabur Director Pradip Burman says E... 
Some wealthy Indians are like 'rott... 
US: Freedom of speech principle cov... 
BJP holds civil disobedience demons... 
Rajasthan BJP workers stage protest... 
Kareena is inspiration for working ... 
Government should be praised for ni...