AlphaValue Corporate Services Fundamental Analysis FR
Back to
AlphaValue Corporate Services
This research has been commissioned and paid for by the company and is deemed to constitute an acceptable minor non-monetary benefit as defined in MiFID II

Ecoslops

CR
Bloomberg   ALESA FP
Other Energies  /  France  Web Site   |   Investors Relation
The cleantech making oil residues green
Target
Upside 189%
Price (€) 8
Market Cap (€M) 35.3
Debt

Ecoslops issued a €5.5m ORNANE convertible bond in February 2016. The options were exercised by September 2017.

We expect the group to structure its next projects through ad-hoc subsidiaries, with a mix of 60% bank debt (either at the group or subsidiary level), 15% mezzanine funds and 25% equity.

Ecoslops issued new equity in October 2017 to fund its development: €4.98m at €13.0 per share (a 21.2% discount vs. the closing price of the day before the capital increase was announced). The capital increase received strong demand (213% subscription rate).

Following the approval of an €18m loan by the European Investment Bank in February 2019, and with the first tranche of €10m arriving in mid-2019, the company now has sufficient resources to fund new projects, eliminating the need for further capital increases in the near future.

Ecoslops could associate with equity partners at the subsidiary level, in the same way as the announcement in April 2019 with Total acquiring a 25% stake in Ecoslops Provence (the Ecoslops’ subsidiary charged with operating the La Mède complex project). However, we do not include this in our estimates for future projects. Anyway, project launches should entail an increase in the group’s complexity including, quite possibly, the introduction of joint ventures.

Ecoslops should issue around €30m of project debt over 2020-21.

Funding - Liquidity
  12/18A 12/19E 12/20E 12/21E
EBITDA €th -380 278 1,736 7,424
Funds from operations (FFO) €th -679 415 1,171 6,351
Ordinary shareholders' equity €th 22,418 21,561 26,111 28,012
Gross debt €th 12,500 22,215 42,580 44,585
   o/w Less than 1 year - Gross debt €th 6,000 6,000 6,000 6,000
   o/w 1 to 5 year - Gross debt €th 3,900 9,729 24,188 25,391
   o/w Beyond 5 years - Gross debt €th 2,600 6,486 12,392 13,194
 + Gross Cash €th 9,520 4,538 18,782 8,909
 = Net debt / (cash) €th 2,980 17,677 23,798 35,676
Bank borrowings €th 12,500 19,000 29,750 31,500
Issued bonds €th 0.00 1,265 3,030 3,285
Financial leases liabilities €th 0.00 0.00 0.00 0.00
Mortgages €th 0.00 0.00 0.00 0.00
Other financing €th 0.00 1,950 9,800 9,800
Gearing (at book value) % 9.81 47.9 79.4 106
Adj. Net debt/EBITDA(R) x -7.84 63.6 13.7 4.81
Adjusted Gross Debt/EBITDA(R) x -33.3 80.6 24.6 6.03
Adj. gross debt/(Adj. gross debt+Equity) % 36.0 51.0 62.1 61.5
Ebit cover x -5.59 -1.53 -0.99 2.31
FFO/Gross Debt % -5.37 1.85 2.74 14.2
FFO/Net debt % -22.8 2.35 4.92 17.8
FCF/Adj. gross debt (%) % -33.6 -65.8 -29.1 -26.3
(Gross cash+ "cash" FCF+undrawn)/ST debt x 0.88 -1.70 1.05 -0.48
"Cash" FCF/ST debt x -0.71 -2.46 -2.08 -1.96
Credit Risk
Covenants
Changes to Story : 26/09/2019, Changes to Forecasts : 26/09/2019.