Good morning, this is the conference operator. Welcome, and thank you for joining the Voltalia Half Year 2024 Results Presentation. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions via conference call by pressing star and one on your telephone. Participants may also ask written questions in the webcast. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero. At this time, I would like to turn the conference over to Mr. Sébastien Clerc, Chief Executive Officer of Voltalia. Please go ahead, sir.
Thank you, and good morning to all of you. Happy to have you being with us this morning. I am here with Loan, who will follow just after my introduction, and then Céline. So Loan, who's the head of communications and marketing, she will be followed by Céline, who's CFO for Voltalia, and then Yannick, who's head of investment funding. And I will start with a few key messages about this first half. We had a good first half with power generation increasing by 13%, with then a turnover that has increased faster than production at +28%, and EBITDA growing faster than turnover at +34%.
This, these proportions between the production turnover and EBITDA are a continuation on what we've seen last year. But we are also in a medium-term dynamic. If you look at at the EBITDA and the capacity in operation, you can see that it has increased steadily year after year. We by a rate of 40% per year for the EBITDA, and 36% per year for the capacity in operation. These are the six month of the first half numbers, so the dynamic that you see here is semester against semester, but the same trend was also, is also visible when you look at our annuals. After looking backward, we are also fueling the medium-term growth, thanks to our pipeline of future projects.
And this pipeline of future projects is also growing steadily year after year. We passed now the 17 gigawatt mark of sites which are currently under development. A growth of 7% and a pipeline representing 5.6 times the capacity that we today have on our portfolio. So as you see, we have a lot of fuel in the tank to continue to move in the medium term. So a first half with a good dynamic, and then if I move on to this summer, we have made an announcement in August about power curtailment in Brazil. This is impacting 2024.
As announced, we could have a 40 million EUR impact on our 2024 EBITDA if the curtailment is extended for the coming months, and if this curtailment is not financially compensated, and if the exchange rate is at 6 between the Brazilian real and the euro. We will provide you with much more details later on in the presentation, but I'd like to first mention that we are carrying out a series of actions with two goals.
Stop the curtailment as rapidly as possible, and also to be financially compensated for this curtailment. We are confident that technical and financial solutions will be found. This is an unusual situation that has no reason to stay for more than a short period of time. But again, we will get into details of that in a few minutes. So with all this in mind, please, Loan, would you tell us about the business highlights?
Thank you, Sébastien. If we zoom in on the power producer activity, you can see on this page the total secured portfolio, meaning the capacity and operation under construction and the capacity awarded, and that means not yet under construction. It amounts to 4.5 gigawatts for the semester, that have been growing by more than 400 megawatts compared to last year. It is a diversified portfolio, with 47% in Europe and 38% in Latin America, and with a large part of solar energy, with 74%. If I look to the moving parts, the capacity and operation have been growing by more than 400 megawatts, and the capacity under construction is still at a high level at 600 megawatts, compared with the record level of last year. On the next page, you can see the planned commissioned and the ongoing construction. A lot of things are going on.
If I pick on one geography, I would select U.K., where we have more almost 200 megawatts under construction with four plants, four solar plants, Clifton, Higher Stockbridge, Eastgate, and Paddock. In Africa, now, you remember we announced that we won a project in Tunisia, a 130 solar project backed by long-term contract, signed with the Tunisian state-owned grid operator. We in Egypt making progress in hydrogen. We announced in 2022 a partnership with TAQA Arabia to keep on developing a cluster combining renewable energy and green hydrogen production, and we did a new progress with the signature of a framework agreement this first semester. Related to Uzbekistan, we are building a project, a solar project, Sarimay Solar, 126 megawatts.
In fact, here we made new developments in storage. First, you can see that we are making progress with the first expansion in the Sarimay cluster, with a storage project of 100 megawatt hour project. And the new development also is on the right part of the page. The fact we signed a framework agreement for a project that will be among the biggest worldwide cluster in storage, with 1 gigawatt hour size. And both projects will be backed by long-term PPA, allowing us to have the full visibility on the profitability. Related to the highlight now of service providers, we have been keeping signing new contracts. Illustration here is in development. We one more time signed a new project in Brazil that will be soon ready to build.
Related to the construction services, we were happy to sign a 128-MW project with Ørsted, its first project in Ireland, where we have a strong experience there, and finally, for maintenance, we exceeded the 6-GW mark of capacity operated for third parties, thanks to new contracts across Europe and Brazil. It's a new step towards our target of 8 GW of capacity operated for third party for 2027. Last highlight I wanted to share with you is the financing.
Related to the financing, we share with you in the past month, that we have launched a process on that, and last July, we announced that we signed a new syndicated loan of EUR 294 million with a pool of 15 banks. We here refinance all our credit lines until May twenty-sixth, including the convertible bonds, the OCEANE, that is due to January twenty twenty-five. Now, I will let the floor to Sabine for the financial highlights. Thank you.
Thank you, Loan. Good morning. So, financial highlights. Let's have a look to the turnover first. So, as for the turnover, and Sébastien mentioned it, we increased for the period by 28%. This 28% arise from both increase in IPP and services activity, and as you can see, services contributed by plus EUR 19 million, while among the IPP, I'd like to draw your attention to the main contribution of solar activity. Overall, whatever the geography, we are, it increased by EUR 31 million, together with Europe, Latin America, and Africa. So, we reached a EUR 249 million turnover in H1 2024. Looking at the EBITDA, so again, we increased our, as well, even higher, plus 34%. This is coming as well from a better contribution in IPP and services activity.
We indeed have, and we see that later, higher, recurring, non-recurring costs on corporate. But I'd like to draw your attention about the contribution, significant contribution, from the plants commissioned in 2023 and 2024. Actually, this contribution of the plants commissioning is even higher coming from the other countries than France and Brazil. What does it mean? It means that the increase from other countries than Brazil and France is such that the share exceeds one third of the IPP EBITDA at the end of the half year 2024. Let's deep dive in terms of activity, energy sales first. Turnover increased by 26%, reaching EUR 168.7 million, explained by, on one hand, a volume effect, we mentioned it previously, 13% increase of power production.
But looking at the plant commission during the period, the production increased since June 2023 by 24%. It has been compensated partially by some disposal of plants end of last year and lower load factors. One point to mention here is that for the first time, the solar production account for more than half of Voltalia's total production. Looking at the price effect, thanks to our inflation indexation of power prices, as per our long-term contract, we do have a positive effect for the period as well, and therefore, turnover increased by 26%. What about the EBITDA? EBITDA increased by 34%. It's a 60% EBITDA margin, which is four-point higher than the last year, half-year result EBITDA margin. So it's a strong growth, thanks to, as per geography, contribution from several areas.
Brazil first, we did have a positive effect of the new plants commissioning. However, it was partially offset by some plants sold end of last year, 2023, and indeed, lower wind resources. We'll come back to that point. As well as we usually perform preventive maintenance work concentrated on the first part of the year, meaning a lower wind resources season. Looking at Europe, more specifically France, we had a sharp increase thanks to new plants commissioned in 2023 and 2024, more than exceeding the one we sold end of last year. As I mentioned before, in other countries than these two, it's plus 79% EBITDA, thanks to average higher resources level than in 2023, new plants commissioned in Portugal and Albania, and including early generation at the Karavasta, with high fixed prices ahead of a long-term energy sales contract. Having a look on load factors.
So on the next slide here, you can see overall, we are comparing our H1 2023 versus H1 2024 load factor towards with the long term of Voltalia. Globally, for Brazil, the result for H1 2024 and, for instance, in solar for France, it's not satisfactory. However, I'd like to draw your attention that since first of July, wind resources is above the long-term average, and however, I like also to draw your attention that in other countries than these two, the resources increased on the first semester. Looking at Services activity. So Services activity, it's a turnover reaching EUR 80.2 million, increased by 32%. The internal activity is much lower as expected, compared to the record level in 2023. But let's focus on external turnover.
It increased by 32, thanks to, on one hand, development, construction, and equipment procurement segments, and as well as operation and maintenance segments, which also increased by 7%. Looking at the EBITDA, it's a minus 10 million EUR. Just let me remind you that it's a seasonal activity for us within Voltalia. However, it improved by 17% compared to last year, last half year. So first of all, development, construction, and equipment, it generates a minus 10 million EUR, improved by 3.4 million EUR. And within this activity, we have, on one hand, the development, which is stable, thanks to, on one hand, lower cost, lower expenses linked to the growth of the portfolio for the pipeline for the future projects, balanced by lower sales with down on the first half year 2024.
Looking at construction and equipment procurement, it rises sharply thanks to construction contracts in Ireland, which more than offset the fall in solar panel prices that continue to weigh on supply contracts as in 2023. Second segment within services, operation and maintenance remains at breakeven, though the turnover decreased due to temporary drop of additional services provided under long-term contracts. So having a look now from EBITDA to net results. The sum up of these two activities reached to an EBITDA before elimination of 102.2 million EUR for H1 2024. Then we deduct from that EBITDA, the elimination, we mentioned it before, decreased, compared to the prior periods. We after deduct the corporate items. What that include?
It includes costs from headquarters and some non-recurring transformation costs, such as IT consulting services, to support an efficiency plan, which has been higher and a higher amount on the first half of the year. We end up with the EBITDA, EUR 75 million. It's +34%, but again, I'd like to highlight the improvement of the margin, which overall for Voltalia, it means one point of margin gain, 30% overall. Then we deduct our depreciation amortization provision. It increased by 7%, while mainly linked to all the plants we commission in 2024, 2023, and the full year effect. As well as last year, we did have higher amount of provision, reflecting inventory solar panels with write-offs and charges associated to exceptional regulatory measures under that line.
Deducting the EUR 48 million as well as other operational income and expense, we end up with the EBIT of EUR 22.2 million. We then have the financial result, financial, actually, loss, which is EUR 36.7 million, which mainly includes the cost of financial debt increase due to the growth of portfolio, but we'll deep dive after on the financial part. Finally, we have the tax charges, which is significantly lower than last year, thanks to deferred tax income recognition that we booked related to our Jordan plants, thanks to future compensation and profitable plants over there. After minority and interest, we end up with a net result group share, which is still a net seasonal loss.
However, better than last year, H1 2023, it's minus EUR 15.7 million, which improved by 19% compared to the prior period. Finally, let's have a look to the balance sheet. Overall, the balance sheet and total assets exceed EUR 3.9 billion. It's mainly driven by increase of fixed assets. Fixed assets linked to power plants under construction, as well as the one we put into operation during the period. It's increase of 125. Cash and equivalents are stable, but in slight increase of EUR 10 million. Regarding the equity, we have an amount of EUR 1.2 billion. It decreased compared to prior periods, but linked mainly to translation reserves and allocation of the net profit of the period. Financial debt stands at EUR 2.2 billion.
The increase of 272 mainly due, out of the total of EUR 254 million to the raising of new project financing, and we'll come back to that point just after. The net debt is EUR 1.8 billion, meaning a gearing ratio of 59%. Finally, other current and non-current liabilities amounts to EUR 404 million. It decreased, and it's mainly linked to the completion stage on our construction activity, related to the working cap evolution. So let's now have a look more deeply into financing cash and debt focus with Yann.
Thank you, Céline. Good morning, everyone. So let me, let's have a look to the cash variation for this semester. So starting from our cash position at the end of the year of EUR 319 million, we had a we can add a very robust operating cash flow of EUR 70 million, driven, of course, by the EUR 75 million of EBITDA for this semester. This is a very nice performance and very solid. Then going to the working capital actually is roughly stable with minus EUR 1 million. Investing cash flow, so we invest into our plants EUR 267 million of CapEx, growing the assets of Voltalia. And we financed this by net variation.
The net variation is the drawdowns and the repayments for a total amount of 292 million EUR of net variation of debt. The 59 million EUR of interest are paid to banks and auditors for the plants in construction and in operation. Finally, we have a 20 million EUR negative effect on FX, coming from the slight devaluation of reais in the first semester compared to last year, and the other currencies. We end up with 329 million EUR of cash, increasing 10 million EUR from our last position. Next slide. Let's go to the debt variation itself. From the gross debt for the end of 2023 to the net debt at June 2024.
Mainly, the main effect here is that we draw EUR 700 million and reimburse EUR 413 million. It comes from, if you remember, we had bridged long-term financing with corporate financing. So here we see the shift from the corporate debt to the long-term project finance debt. This is the main variation for the gross debt reaching EUR 2.181 billion at the end of June, of which we subtract the EUR 329 million of cash to reach the amount of EUR 1.852 billion of net debt at the end of June 2024. If we go with a bit more of detail about the debt, it's on the next slide.
We actually remain in line with the characteristic we had at the end of 2023. The debt structure is still mainly composed with project finance at 61%, slightly higher than at the last annual results. But here you can see that we do not have any more significant bridge on the balance sheet. The green bonds represent now 11% of the debt structure, as the total amount of debt slightly increased. In terms of currency, we are still mainly in euro with, of course, roughly a third of reais debt.
In terms of rate structure, we remain with a 15% of variable rate, because of course, of the revolving facilities we have, but 85% of the total debt is fixed at or indexed, and we remain very well protected with the evolution of the rates, the interest rates for the past. Of course, each time we are continuing to invest and to raise project finance, we have long-term hedging on our debt. Finally, the banks of our corporate facilities that you can see at the bottom right. I would like especially actually to thank the Groupe BPCE, Groupe Crédit Agricole, BNP Paribas, and Mizuho as lead arranger for our last facility.
But as well, Piraeus, Arkéa, CIC, Goldman Sachs, and La Banque Postale, who actually contributed to that specific new facility, which is an important milestone in the refinancing and financial strategy of Voltalia. And when Loan was talking about the fifteen banks of our pool, of course, it includes all the banks from Group BPCE and Group Crédit Agricole. Coming now to the objective, the 2024 objectives, of course. First, as Sébastien mentioned, before curtailment impact, we reaffirm our financial performance with a targeted EBITDA of 255 million EUR, of which 230 from energy sales. But of course, there's this curtailment indeed. As announced in August, we are suffering curtailment. But what is the curtailment?
Curtailment is when the grid operator decide to limit the transmission of our electricity. We, Voltalia, are a producer. Let's imagine actually we are a tomato farmer, okay? So we are producing tomato, and to send tomato to the retailer, we need trucks to transport the tomatoes. And actually here, the truck provider is limiting the number of trucks in order to go for our tomato to go from our field to the retail shop. This is exactly what's happening here today in Brazil, which is not a sustainable situation. The context of this curtailment in Brazil. Across the overall country, this curtailment is imposed by the Brazilian grid operator with unusual level. Coming back to my tomato example, it is a bit like if your truck provider-...
who would have a hundred trucks, would decide one day to allocate only 50% of the trucks to the transportation, keeping 50% of the truck in reserve if we would have too many potatoes, or if there would be too much, a road which could be a bit, unstable. So we believe in Voltalia, this is really highly unusual and irrational. In addition, in the northeast of Brazil, there's the completion of new transmission lines are delayed, meaning actually we miss some trucks, and trucks are coming with the completion of the new transmission lines, we are willing to strengthen the grid. What is the impact of that contract?
As Sébastien said, if this situation is extended over the coming months, if there is no financial compensation, and if the average EUR/BRL exchange rate remain at around 6 for the overall second half, then Voltalia could be cut, the Voltalia 2024 EBITDA could be cut by EUR 40 million, of which 10 million coming from the EUR/BRL exchange rate. But of course, we have an action plan to move forward and fight against this situation, and we through, of course, through sector association, I remind you that all players in Brazil are so suffering the same situation as Voltalia, and directly as Voltalia, we started litigation actions at a federal level, but as well at local level.
I remind you that as per law, we need, and the state need to provide for financial compensation. Of course, we are fighting legally, but we have as well constructive discussions with the grid operator on the technical side, and with public authorities on political side, in order to rapidly stop curtailment and accelerate the financial compensation. It can take many, actually to mitigate and to decrease very fast, this curtailment. We can have a lot of solutions coming from a pure compensation, coming and going through spreading this curtailment over all sectors, electricity sectors, because for now it's mainly the renewable, et cetera, et cetera.
But despite compensation might be not perfect and could take time, Voltalia is confident that technical and financial solution will be found. That being said, let me drive you through our assumptions for the 2024 EBITDA forecast. So in addition to the 75 million EUR of EBITDA for the first semester, we can break down the energy sales through three items. First, 135 million EUR will be produced, and this will be produced for the power production of the existing assets until what was commissioned in 2023. So this is the running of the existing facility, the historical facility, plus the full year effect of what we have commissioned in 2023.
Then, with what we have commissioned, with the plant commission in 2024, we had EUR 10 million, plus EUR 10 million for early generation. Sébastien was talking about Karavasta mainly, for the first semester, will be the same for the second one. So energy sale should amount a solid 155 million EUR of EBITDA. For services and corporate, we should stand at roughly 25 million EUR of EBITDA for the second semester. This breakdown allow us to end up with a forecast EBITDA for 2024 of 255 million EUR before the curtailment effect, which could affect Voltalia up to 40 million EUR, if the different assumptions we described would be met. Finally, we confirm you our operational objective, which is around 3.3 gigawatts of plants in operation and construction, of which around 2.5 gigawatts in operation. And I let now the floor to Sébastien to conclude.
Thank you, Yannick. I'd like now to talk about the medium term and about twenty twenty-seven, where we confirm our objectives for twenty twenty-seven. On all items, on the energy side, the energy sales side, we will have, by the end of twenty twenty-seven, more than five gigawatts in operation and construction, of which four point two in operation. Then regarding our services to third party clients, one of the key KPI is how many gigawatts we operate for them, and our objective for twenty twenty-seven is to operate more than eight gigawatts. By the way, Loan updated you that we are moving actually faster than expected toward this objective, already at six gigawatts.
Then, both energy sales and services together will generate an EBITDA of EUR 475 million. This is a normalized EBITDA, assuming real exchange rate and resource at the long-term average, of which, of these 475, 430 from energy sales, so our power generation. We have also a set of mission objectives that we confirm as well. Most of them are for 2027. I.e., first, an objective to have 4 million tons of carbon emissions that will be avoided by our clients, thanks to Voltalia's activity. Second, that we have a stakeholder engagement plan aligned with the IFC standards.
IFC is a member of the World Bank, with 100% of our projects being our target. And third objective for 2027, we will have 50% of our solar plants, which will be located on co-used or upgraded land. So meaning that, the land we use for our solar plants is not just there for power generation, but also things like agriculture and so on. Our last objective is for 2030. This is because it's the French law that is requiring companies to have a 2030 objective for carbon intensity. So we do have one, which is to reduce our carbon intensity by 35% when we compare it to 2022, calculated as intensity of the megawatts we build. So, with these medium-term objectives confirmed, and before getting to the questions, I'd like to summarize a few takeaways.
First, we had a quite satisfactory first semester with this production increasing by 13%, turnover faster than production at 28%, and EBITDA faster than turnover at +34%, then we come through the 2024 year-end forecast, with all the details regarding the second half provided by Yannick. Here, the subject is really curtailment, which, with the assumptions that we described, could reach EUR 40 million impact on our EBITDA. Looking forward for the medium term, we have continued in the first half to build our pipeline of future projects, which is one of the reasons why we can confirm the 2027 objectives. Finally, it's always important to have a strong base of banks providing us for good liquidity. We've just closed this syndicated loan, which is refinancing all of our facilities, including our OCEANE convertible bonds until May 2026. It appears that you have some questions. Happy to answer them.
Thank you, sir. This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question via conference call may press star and one on their touchtone telephone. To remove your question, please press star and two. Please note that you may also ask written questions via webcast. The first question comes from Arthur Sitbon of Morgan Stanley.
Hello, thank you for taking my questions. So the first one is on the guidance, because you said that you confirm the before curtailment guidance of EUR 255 million of EBITDA. But at the same time, the curtailment impact, if I'm not wrong, don't misunderstand, the curtailment impact of EUR 40 million includes EUR 10 million of FX so, are you actually saying that with effects, the new guidance, pre-curtailment would be two hundred forty-five, or is it still two fifty-five? It was not really clear for me, but I may have misunderstood. The other question was on the services business.
On the services business, my impression as well here is that excluding project sales gains, the business is actually the external business is actually loss making. And I think that was the case last year already, if I'm not wrong. Is that a structural situation? Is there any plan to improve that? Are you considering action at the group level? And the last question, just back to the curtailment issue.
Just to understand the nature of the issue, am I right to think that the main problem financially for you is that there are some contracts, like PPAs typically, where you still have to deliver the electricity to the client, and so you have to buy the electricity in the market, to deliver it, and that makes the outsized financial impact? Just want to understand that a bit better. Thank you very much.
Thank you. So first regarding the guidance, since curtailment is impacting the Brazilian real EBITDA, we have to assume an exchange rate. But the exchange rate is also impacting the other cash flows from Voltalia. So the estimate we gave take into account the full range of cash flows. Regarding your second question on services, the answer is that it is profitable, and why is that? That is when, of course, we have good, very good profitability about sale of development, but we also have costs of sales of development.
So if you take away the revenues of sales of development, but not the cost of development, then of course, without revenue, any business would be negative. So when you reestablish this in the right way, the answer is it's not unless the services are not negative. And this is true for the non development as well as development. Finally, the third part of your question is about the curtailment. The effect of curtailment is different whether we talk about regulated PPAs or private sector/corporate PPA.
The reality is even a little bit more complicated than these two categories, but anyway, so depending on the type of PPAs, the consequence of curtailment can be either some penalties or some effect on the volume commitment that you have mentioned. This is actually a good illustration of why the Brazilian law is specifically saying that if the grid is curtailing a power generator, it should be compensated, because the grid cannot say there is no client, because we do have a client. Therefore, the law is providing that we are compensated, and this is why both through litigation and through constructive discussions we are confident that we will get the compensation for this curtailment.
Thank you. Just a clarification on the first question: So am I right to understand that the 10 million EUR of FX impact is not related to curtailment?
Indeed, the effect is independent from curtailment, but effect has an impact on Brazilian real, which is itself dependent on the exchange rate.
Okay, thank you.
The next question is from Paul Sobral of Kempen.
Yes, good morning. Thank you for taking my question. I have two sets of questions. The first one is still on Brazil. First of all, you mentioned that the legal and amicable actions that you are taking might take some time. Can you share the timeline that you have in mind? Is it fair to expect a concrete solution before the end of the year? Second, still in Brazil, did the question of potentially recurring curtailment emerge during your discussion with the grid operator? Is there, in your view, a risk that for the coming, I don't know, two or three years, we have curtailment in H2? And last one on Brazil, the exchange rate between the euro and the Brazilian real is now at 6.25.
Could you maybe give us a sense of the sensitivity of the EBITDA if the exchange rate in H2 was to land at 6.2 instead of just 6? Second set of question on the balance sheet. It looks more stretched than historically. Your gearing is reaching almost 60% because of debt 6%. So the question is, do you have any covenants on your corporate financing that could become a problem at the current level of gearing? And finally, how do you see gearing and the cost of debt evolving through 2027? Thank you.
Maybe I'll answer the one on curtailment, and then you can follow on. So in terms of timeline, it could go fast because the situation we have now is not so rational from the perspective of the Brazilian grid and authorities. Because we are today in a situation where the grid capacity is limited artificially, which practically means that some lines that have been in operation for many years are disconnected to have them as reserve capacity in case the other lines would have troubles, which is itself not so prevalent. So the situation is the result of not so rational posture among the players in Brazil.
It's costing money, at least to the country and probably to the Brazilian authorities, because legally speaking, they have to compensate. So normally, to answer your question on timing, it should run quite rapidly. It's a matter of just coming with solutions by year-end, definitely possible, but maybe not. It is not depending on us. So we are very confident that solutions will be found both in terms of stopping and limiting the curtailment on one hand, on the grid itself, and second, on compensation. Maybe the solution will come fast, maybe a bit slower, maybe half of the solution will come fast and the second half will come slower.
We are actively discussing with the authorities with a good mood, together with the other industry players. So I don't want to provide all the discussions, because it's our interest to keep this good relationship and to make things moving forward. So in a nutshell, to summarize, it should be relatively quick, but I cannot commit on a timing, which is not depending on me.
Maybe I can take the covenant, huh? As you say, some of our ratios are increasing a little bit. Nevertheless, I confirm that we are very comfortable on the different covenant ratio of our corporate debt, which are mainly structure ratio and LTV.
Thank you. And, uh
Yes.
Yeah.
Sorry, just maybe to link with the answer from Yannick and also answer your question about the gearing and the balance sheet. I do confirm that indeed we have a gearing which is increasing, but still within our plan, it's monitored. When we build our target for 2027, it remains in line with what we have. So we do not anticipate any issue in respect of the gearing.
Then you asked the question on the FX.
FX, yeah.
6.2 doesn't make a big difference versus 6, so it's the same guidance on 6.2 and 6.
Very clear. Thank you.
The next question is from Juan Rodriguez of Kepler.
Hi, good morning. Thank you for taking our questions. I have two on my side, if I may, on the curtailment issue. The first is, what level of assets are affected by this curtailment, sorry, in terms of megawatt hours? And the second is, what levels of production are you taking into account for H2? So this is the first one, and the second one is a little bit of clarity on this, 'cause you signaled that part of it is due to the delays of this Rio Grande do Norte transmission line. When was it expected to be commissioned, and what is the new timeline, as far as you know, on this transmission line? And if there are further delays on this asset, can curtailment, probably on a lower extent, go up to 2025? Thanks.
On the assets themselves, we are affected on not all, but almost all of our power plants in Brazil, but at various levels. So for the one asset which is not affected at all is our Oiapoque site, because it's not connected to the main national grid, but to a local grid. But the others are affected, but at various levels, and evolving over time, since the policy of the grid has been evolving in the right direction, actually, compared to August, but evolving. So I don't have the precise gigawatt hour or megawatt figures. We maybe we'll work on that.
But the reason I don't have it in mind is that anyway, our goal now is to have the discussions and to make things moving forward, to stop curtailment on all the things. Regarding your, the second part of your question, the H2 curtailment assumption of our scenario is in line with what the grid has told us in terms of their forecast. Which is a high level, hence this big impact in terms of euros. We are feeling that their assumption could be absolutely could have more curtailment than what is reasonably expectable. But this is what we took.
Finally, about this local transmission line in the Rio Grande do Norte that has a specific impact on the plants we have there. A new transmission line has been under construction for some time. It was expected to be completed during the summer, and it's close to being complete as we speak, so it should come, for sure, before year end. But we don't have the exact details about the relationship between the grid and the contractor building it. So we don't have a precise view, but it's almost complete as we speak, because when we get on the site, we can see the line. It should not take too long.
Okay, understood. Thanks.
There are currently no more questions from the conference call. I'll hand it over to Mrs. Duong for any written questions. Thank you.
Thank you for your questions. I can see several ones. I have several from Oscar Najar from Santander. Some of them you already answered, Sébastien, but I will repeat. How confident are you rewarding the possible past and current compensation from Brazilian regulator? When are you expecting the networks to be updated to avoid future curtailment? A question related to the share price. At this level, if the share price does not go up, as I asked you a few months ago, would you consider a share buyback or buyout of the company?
Regarding, yes, actually the first parts of the question, we, we've gone through already quite a bit. The one that maybe is complementary to, to is the future, the overview, of the future of curtailment in Brazil. Curtailment is a subject which is existing in a series of countries. We don't have to go very far from here in Paris to see some examples. For instance, the problem has been there for much longer than Brazil. When we look at Germany, where negative prices, which is the same, exactly the same one as curtailment, has been going on for quite many years.
I think this subject is there. It has been, and it's becoming a bigger volume in the future versus in the past. Brazil is a country like another one, because it has a very strong grid that has been specifically similar to grids that we see in Europe. But it happens that as we speak today in Brazil, there is a not so logical management of the grid. I gave you a very good illustration of that, by stopping to use voluntarily lines that have been in operation for many years, to please take them, to keep them as reserve line, which is not so logical.
On that matter, again, we see that we think that the situation will get back to normal quite rapidly, and the situation in Brazil is not, except for this illogical part that has happened, but just for a few weeks, huh? It is going to go away with Brazil becoming like any other grid, managing like everybody else, because it's a subject that is a matter for any grid in the world, and for decades, huh? Regarding the second part of the question, stock price is really low as we speak. It is not reflecting the true value of the company.
Of course, when that is the case, it is normal that the question arises about buyout, like you are mentioning. You remember that the same question was asked back in April, and I think the situation today is like it was in April, so it's a logical question. It's a logical question for Voltalia, and a logical question for other renewable company which are listed in the stock market. The question of buyout is an open question. And of course, there is not much more that I can say, because it's more a question for shareholders than for the company itself. But again, it's a very rational question that anybody has to ask itself, as we speak.
Moving to other questions, I have a question from Virginia Sanz related to the U.K. plans. Have we signed PPAs, and how will we- you sell the electricity in U.K.?
Okay. Maybe,
Yeah.
You want to answer?
Of course. So, yes, you know that we have a few sites under construction in the U.K. Most of them have PPAs already signed in order to move forward and to get in operation. Some others are under contracting, and should be announced promptly. But definitely we remain on our strategy to have long-term PPAs signed for all our plants, avoiding any merchant asset. And of course, U.K. market is a very liquid and dynamic market for the PPAs, so we are very comfortable to move forward and to have to be fully covered at commissioning date.
Looking at other questions. Operator, do you have other questions at the conference call?
Yes, madam. We do have a follow-up question from Mr. Paul Sobral of Kempen.
Yeah, thank you for taking my follow-up. I wanted to take the chance to ask about the sale of a project in Brazil. So you sold a project in advanced development for 500 megawatts. I understand that the contribution from this project, exchanging with your teams, understand the contribution is around EUR 10 million, which suggests a multiple of around 20,000 euro per megawatt. Are you, let's say, comfortable with this level of valuation for asset under development in Brazil? And, you know, will you be happy keep selling assets at this type of multiple? Thank you.
In fact, the transaction amount is not public, and so it would be difficult for us to comment on it. What I can say, however, is that we are one of the top three largest developers in sites in Brazil. We keep them on our balance sheet when the sites are, thanks to market conditions and site quality, meeting our standards in terms of return and in term of risk. One of the risk we want to cover is market risk, meaning we want to have a very long-term PPA. But we have many more sites that we develop than what we want to keep for the sites meeting our standards.
We've been selling Brazilian sites year after year for many years. Regarding the price we sell these sites, we cannot provide detailed transaction per transaction, but we have provided you with the average of these sales back in last year and updated in April. We hope to be able to update that figure annually, putting several sites together in order to keep the confidentiality of the transaction. This data that we have shared with you shows a high profitability of developing sites and selling them, with selling price and cost of development multiples being really high, huh? The figure that was disclosed was at
Eight.
Eight times the... So the selling price is eight times bigger than the development cost. And sometimes this is playing on a big amount, sometimes on a smaller amount. What matters to us is this multiple. We'd rather sell at a high multiple, even if it's a lower price per megawatt than the other way around. This site we sold in the first half was not fully developed, so it's not the highest price per megawatt that we have, but the profitability is there.
Okay, very clear. Thank you.
Mr. Clerc, there are no more questions on the conference call at this time.
All right. So thank you very much for all of your questions and for following Voltalia over time. So we will remain happy to answer more questions if you have more subjects coming up in the coming days. Loan is always there for this. And in conclusion, I will just say one more time that we have enjoyed the first half, which is according to what we expected, and actually better for many things. And curtailment is the challenge we face now, and as we have said, we are optimistic it will be solved. We are hopeful that it will be fast, but anyway, it will be solved. We'll continue to work on this. Thank you so much, and look forward to seeing you again sometime soon. Goodbye.
Thank you.
Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.