Holaluz reduces its debt by eight million, but still does not secure the necessary financing | Companies

Holaluz management had one goal: to go to the general meeting of shareholders this Friday with a clear financial horizon. That did not happen: shortly before the conclave, the company announced that it would reduce its debt by 8.2 million euros by April 30, leaving it at 57.2 million, a far cry from the 65.4 million at the end of last year. However, key financing remains elusive.

“Holaluz continues to explore other financing options, both short-term and long-term, to continue to improve its financial structure,” the company simply stated in a statement sent to BME Growth, the small-cap market on which it is listed. Treasury problems have left the Catalan company on the brink of bankruptcy and in search of urgent solutions that have yet to materialize.

Thus, the senior management of Holaluz maintains the same position as in recent months: “There are various alternatives, including industrial and financial investors, institutional investors and government agencies, both in terms of capital and debt.” Among the existing alternatives are financial injections from the Catalan Generalitat or the Official Credit Institute (ICO), or the emergence of new shareholders. But none of these alternatives seem to be taking shape. At least not in time for the board, which has approved all the items on the agenda, including the 2023 accounts.

In a period of maximum uncertainty and strong punishment for the shares – which, however, this Friday take a break with double-digit growth – Holaluz aims to put on the table data that gives some peace of mind to shareholders. According to him, monthly recurring bills amount to between 15 and 20 million euros. And the gross operating result (Ebitda) no longer shows red numbers in the rolling year.

“In the first half of 2024, the company continues to optimize its cost structure, continuing the work started in the first quarter of 2023, which has already resulted in cost savings of more than $30 million over the past five quarters,” the company, co-founded and chaired by Carlota Pi, said in a note, saying it “will continue to operate in line with its normalized EBITDA guidance of between €19 million and €24 million” for the current year.

Despite a modest recent recovery, shares in the Barcelona energy company have fallen 50% this year. The reason? A cocktail of factors that have made the climb: a sharp decline in the domestic market, a sharp drop in electricity prices and increasing saber-rattling in the shareholder mix. But the most pressing financial question remains: how to raise the money needed to survive this ordeal.

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