• Visalia ends 2024 with an operating profit of €20 million, over 1,000 km of energy and telecommunications networks, and 125,000 customers
• With 300 “Solar Neighborhoods,” Visalia is the third-largest urban generator of renewable electricity, with a 33% national market share according to the CNMC.

Visalia, the independent energy and telecommunications infrastructure group, increased its revenues by 12.1% to €261 million, as reported in the credit rating assessment prepared by Ethifinance on August 11, based on the annual accounts audited by EY, upgrading Visalia’s long-term credit rating to ‘Investment Grade’ BBB- with a stable outlook.

The report states that Visalia consolidated its gross operating profit (EBITDA) at €24.4 million (9.3% of its revenues) by expanding its presence in more profitable business lines, with earnings before interest and taxes (EBIT) of €20 million.

According to the rating agency, Visalia’s profit margins stand out significantly above those of its main competitors, given Visalia’s greater share of business backed by relevant strategic assets and a more diversified energy portfolio that includes electricity, solar energy, natural gas, and fuel oil, complemented by telecommunications services such as fiber, mobile telephony, fixed telephony, and TV. This enables Visalia to offer its customers a single convergent tariff that combines electricity, gas, fiber, and mobile.

Equity increased to €80.4 million (+333% year-on-year), underscoring the commitment of the main shareholder and reflecting a strong improvement in capitalization levels, with an equity-to-total financial debt coverage ratio of 76.3%, which is three times higher than the 25.8% recorded in the previous fiscal year.

According to the agency, Visalia’s financial policy is characterized by a controlled level of leverage, with a net financial debt-to-adjusted EBITDA leverage ratio averaging 2.0x year-on-year (1.7x in 2024, according to annual accounts).

Pablo Abejas, CEO of Visalia, stated: “The strong results of the past three years validate our growth strategy in infrastructure businesses combined with a comprehensive and diversified supply model, which allows us to maintain stable profitability above the industry average while ensuring that our customers receive energy and communications tailored to their needs at highly competitive prices.”

The report confirms the stability of Visalia’s EBITDA over the last three years (around €25 million), the integration of 1,000 km of electricity and telecommunications networks and infrastructure from Serosense, and the incorporation of Enexia’s fuel oil logistics infrastructure, bringing Visalia to a total of 9 fuel centers and a fleet of 28 tanker trucks.

It also highlights Visalia’s vertical integration across the energy and telecommunications businesses in which it operates, being active throughout the entire supply chain—from production to distribution and supply—emphasizing the 14% growth in its customer base, reaching 125,000 clients in energy (electricity, solar energy from solar communities, piped natural gas, heating oil, and agricultural diesel) and telecommunications (broadband internet, fixed and mobile telephony, and TV content).

The report further notes increased visibility of the business plan regarding funding sources and upcoming investments, with the successful issuance of green bonds and sale & rent-back agreements for certain assets, as well as the strategic acquisition of Barter’s businesses, incorporating 260 new distributed generation solar communities and 113 electric vehicle charging points, in addition to 6 new fuel logistics centers and 16 tanker trucks added to Visalia’s fleet through the integration of Enexia.

With 300 distributed generation solar communities or “Solar Neighborhoods,” Visalia becomes the third-largest urban generator of renewable electricity, produced and distributed in the same communities where it is generated, holding a 33% national market share according to the CNMC. This allows the company to anticipate for next year its strategy of generating 50% of its EBITDA from businesses backed by its own infrastructure.

For the credit rating upgrade, Ethifinance considered that these asset-backed businesses benefit from a regulated framework and high barriers to entry, which protect them from competitors and limit cash flow volatility—particularly in the case of electricity distribution, which operates under a local monopoly regime with remuneration regulated by the CNMC, ensuring the profitability of investments.

The report also highlights Visalia’s supply agreements with top-tier counterparties such as Shell, Engie, Statkraft, Atlántica, and Repsol, covering short-, medium-, and long-term contracts that allow the company to secure the supply of more than 2 TWh of energy delivered annually to its customers at stable and competitive prices.

Geographically, the report cites the launch of operations in Portugal through its subsidiary Zug Power, starting in early 2025, with the aim of replicating the Spanish business model in identical fashion, underpinned by proprietary infrastructure and stable long-term supply agreements. This expansion will strengthen its renewable energy business serving residential customers and small businesses located in the Solar Neighborhoods operated by Visalia, as well as homeowners’ associations, the core segment of its customer base.

With regard to environmental, social, and governance (ESG) criteria, Visalia is considered to have a favorable ESG score, positively impacting the improvement of its credit rating.