Production Curtailment Impacting Voltalia

Voltalia (Euronext Paris, ISIN code: FR0011995588), an international renewable energy company, announced that the Brazilian transmission system operator is imposing significant curtailments in certain areas. This curtailment could severely impact Voltalia's 2024 EBITDA if extended and uncompensated financially. Voltalia is working to reduce the curtailment duration and seek financial compensation.

Historically rare, curtailments have increased following a blackout in August 2023. The current curtailment, especially in Northeast Brazil, may last several months due to delays in building new transmission lines.

Voltalia has initiated several legal actions, aiming for financial compensation for affected plants. Concurrently, discussions with the network operator and public authorities are underway to expedite compensation and minimize curtailment duration.

Although the financial impact is challenging to quantify, Voltalia estimates a potential reduction in 2024 EBITDA by around 40 million euros, assuming no compensation and a steady EUR/BRL exchange rate. Despite the second half's high production seasonality and favorable wind and solar forecasts, the current curtailment's impact remains concerning.

Despite challenges, Voltalia remains optimistic about resolving technical and financial issues and reaffirms its 2027 targets, including a normalized EBITDA of approximately 475 million euros and operational capacity goals.