Driven by strong growth, La Française de l’Énergie launches a share buyback program – Le Journal des Entreprises

Wouldn’t the stock markets appreciate the La Française de l’Énergie (FDE) share at its fair value? This is what the multi-energy producer (gas, electricity, heat, hydrogen), based in Pontpierre in Moselle, suggests by announcing a share buyback program for the next twelve months, for a maximum amount of 50 million euros. “In the opinion of FDE’s board of directors and management, all of the group’s underlying activities are worth significantly more than the current market capitalization”, notes the group (2022 turnover: 26.2 million euros). euros) in a press release. In accordance with the rules in force, La Française de l’Energie may not “hold more than 10% of the shares of its capital”.

Redemptions according to the estimated degree of discount

Making it possible to support the price of a share and generally very well received by shareholders, who find themselves favoured, the mechanism of share buybacks can be done to the detriment of the investment. A risk anticipated by the managers of La Française de l’Énergie, who specify that the operation should not reduce “the consolidated cash position and equivalents below 15 million euros”. Concretely, the amount allocated to this strategy will vary according to the money available to make new investments but also “the degree of discount (of the action) compared to the estimate of the intrinsic value by the management”.

Described as a “key axis” for the development of La Française de l’Énergie, the group’s “financial solidity” should enable it to develop low-carbon energy solutions and increase the production of “gas, electricity, heat, from Bio-CO₂ and hydrogen in Europe”, describes the energy company, who believes that “the group’s current balance sheet structure and the continuous generation of cash are amply sufficient to carry out the development plan announced for the 2026 financial year”.

The figures seem to largely justify this optimistic point of view: over the last six months of 2022 (corresponding to the first half of 2023 for the group), La Française de l’Énergie reached 20.8 million euros in turnover business, an increase of 129% over the previous year. Strong growth which is explained “by a further improvement in the volumes produced, in a context of volatile but still favorable energy prices”, describes the group.

Towards 100 million euros in turnover

Revenue from electricity production by La Française de l’Énergie has tripled to 12.7 million euros over the last six months of 2022. An increase that reflects the growth in the cogeneration park in Hauts-de-France and Wallonia (Belgium), whose installed capacity increased by 50% between the two halves examined, to reach 22.5 megawatts. Production sold under very good conditions: “The group benefits from a guaranteed tariff with an obligation to purchase in France for 53% of its installed capacity in France and Belgium, […] with an average sale price of more than €250 per megawatt hour over this half-year”.

Another source of income, gas production increased by 56% “in a context of sustained market prices” and posted, over the first six months of the 2023 financial year, a turnover of 7.6 million euros. . These are all elements that allow La Française de l’Énergie to reiterate its objectives: to achieve, by 2026, 100 million euros in turnover, an Ebitda of more than 50 million euros.