Of Thanks to Floudopoulos
Yesterday, in the context of the results of the Avax group, the company made the first official report on the process it has started for the sale of its subsidiary in the power supply sector, the company Volterra.
According to the management of the Avax group, which are indicative of the problems of the entire supply sector due to the energy crisis and the increase in electricity prices, during 2021 the increase in gas prices has resulted in a significant increase at the clearing price of the domestic energy market.
Adherence to the supply code had the effect of delaying the harmonization of customers’ charges, causing significant losses to the Group.
The large increase in Volterra turnover and the rise in market prices resulted in a jump in the required working capital to a level that Volterra was unable to manage and needed significant support from the parent company.
Due to the situation created, the Company decided to divest from the energy market and Volterra’s activities, including its profitable RES subsidiaries, in order to enhance its liquidity.
It is noted that in the financial results of 2021 the energy activity is categorized as interrupted due to the sale decision, with a participation of 190.6 million euros in turnover and a loss-making result after taxes of 14.4 million euros, producing a negative EBITDA of 7.1 million . euro.
Volterra’s case is not the only one. Negative results were recorded by the supply sectors of three listed groups active in the market: PPC, Protergia and Motor Oil.
Only in the case of these vertically integrated companies, the negative results of the supply were offset by the profits recorded in the manufacturing sector.
In contrast, for non-vertical companies that are unable to offset supply losses through production, such as Volterra, the problems are more serious. It is estimated that in addition to the subsidiary of the Avax group, other companies are facing similar problems.
It is noted that Volterra has a market share of 2% and is in sixth place in the supply market. Finally, it is worth noting that information that had come to light in recent weeks spoke of several companies, at least 3, which show a significant increase in their debts to market managers, which is another indication of the narrowness they face supply companies due to the extraordinary conditions that have formed in the market.
Source: Capital
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