The Company's 2018 year-end results met our expectations as set in the previous quarter; all the projects in development stages are progressing according to the expected timetable; expected to obtain a conditional license for the Aran project in the coming months; target price has risen to NIS 5.53
TEL AVIV, Israel, March 20, 2019 /CNW/ -- The TASE analysis project was launched in 2016 in order to raise investor awareness to 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 their industries and markets.
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Summary of Highlights
Good financial results - an increase in revenues due to an increase in the price of electricity and green certificates as a result of a hedge by the company:
• Revenues for 2018 amounted to NIS 171 million, similar to our forecast of NIS 168 million given in Q2. In 2017, the Company's revenues amounted to NIS 141 million.
The two significant developments during the reporting period were: 1) the connection of projects established in the framework of the first of its type tender in the photovoltaic field in Israel at a capacity of 90 MWp (the company has 94% ownership) 2) progress towards the financial close of four projects with a capacity of 85 MWp in Virginia are advancing along with talks with two US banks regarding binding agreements.
The Aran Project - On February 25, 2019, the Planning Administration decided to approve the transfer of the project plan for comments and reservations (approval for a conditional license is expected in few months). The Company is updating its estimates regarding the cost of the anticipated investment in the project, which is expected to amount to between NIS 700-550 million and the projected annual income, which is expected to amount to between NIS 155-135 million per year. The main significance of this is further progress towards the start of the project.
In view of the company's progress, the increase in the prices of electricity and green certificates, the expected electricity revenues at the beginning of 2019, and the Company's compliance with its plans, we are updating our estimate of Energix's value to NIS 2.2 billion / $602 million (our last estimate amounted to NIS 2.1 billion); Target price ranges from 5.25 to 5.84 and on average is NIS 5.53.
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About the company - Energix Renewable Energies Ltd. (hereinafter "Energix" or "the Company") is a renewable energy company, currently active in the field of solar (photovoltaics) and wind energies. As one of the largest Israeli Independent Power Producers (IPPs) with activities spanning Israel, Poland and the U.S., 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. Today, Energix sells the electricity that is produced by the systems it owns to Israel's Electricity Corporation and in Poland, on the Polish Power Exchange, where its facilities were built under local regulation which supports the establishment of green energy facilities. Energix shares have traded on the Tel Aviv Stock Exchange since 2011.
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SOURCE Frost & Sullivan