Voltalia slumps after Brazil's grid operator curtails power output

Voltalia SA

20/08/2024 08:25

** Shares in Voltalia  VLTSA.PA  slump 16% after the
electric power stations company said Brazil's grid operator had
imposed an electricity production curtailment, a move that could
strongly impact its 2024 core profit 
    ** The grid operator's move is intended to stabilize the
network after blackouts in August last year
    ** A months-long production cut would strongly impact 2024
EBITDA, Voltalia says, adding it is working to reduce the
duration and to be financially compensated
    ** "Although electricity production is traditionally higher
in H2, this time, curtailments could significantly reduce
production capacity, consequently affecting revenue
(historically 70% higher in H2 compared to H1) and EBITDA," says
Midcap Partners
    ** The broker lowers its 2024 EBITDA forecast for Voltalia
to 210 million euros ($232.6 million) vs Voltalia's guidance of
around 255 million euros
    ** The shares are heading for their worst day in about
twelve years if the losses persist

($1 = 0.9029 euros)

 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))