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Breaking News, Research 17 Apr 2023

BREAKING NEWS – 17.04.2023

In the press release of 21 March 2023, Frendy Energy, a company active in Italy in the production of electricity from mini-hydro plants, listed on Euronext Growth Milan, announced the approval by the Board of Directors of the results as of 31 December 2022.

During the 2022 fiscal year, the Company generated:
Sales Revenues of € 1.21 million, compared to € 2.11 million in 2021;
EBITDA of € 0.13 million, compared to € 1.10 million in 2021;
EBIT equal to € – 4.47 million, compared to € 0.32 million as of December 2021;
Net Income of € – 3.34 million, compared to € 0.23 million in the same period of the last year;
NFP improved from € 1.06 million cash positive in FY21A to € 1.51 million cash positive in FY22A.
It should be noted that the decrease in Revenues, recorded in the 2022 fiscal year, was determined by the scarcity of water resources due to the extreme drought that affected all of northern Italy during the year, leading to a reduction in electricity production of 44.0% compared to 2021 (from 10 GWh to 5.6 GWh). 

EBIT, following gross depreciation of approximately € 3.80 million, the result of the reconsideration of the expected production of the plants included in the impairment test that showed a loss in the value of the Group’s assets, amounted to € – 4.47 million in FY22A (€ 0.32 million in FY21A).

In terms of the Balance Sheet, however, it should be noted that the improvement in Frendy Energy’s FY22A NFP, compared to FY21A, is mainly attributable to working capital movements.
Based on what has been communicated and while waiting to learning about the future evolution of the Company and its growth prospects, we leave our target price, our recommendation and our level of risk to Under Review (U/R).
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