Brooke Energy has emerged as the new star of renewable energy in Spain. The platform, founded by Glovalvía’s president and former FCC CEO Juan Badger, is seeking a new shareholder to outline its growth plan. With this, it intends to sell 30% in an operation that values the firm in excess of ₹2,000 million, according to financial sources.
Badger shares shareholding with two investment funds. On the one hand, 50% of the company is shared with Canadian OPTrust, with whom it launched the renewables platform. In 2019, he sold the other 50% to the British pension fund USS for 225 million. This valued the company at 450 million.
Since then, the company has experienced phenomenal growth. In 2019, it had only 4,000 MW of solar power. Now, according to its website, its capacity has doubled and exceeded 8,000 MW. Also, the boom in investment in renewable energy has only increased.
Since 2019, Bruc has been strengthening its portfolio with purchases. In 2021 it acquired 2,000 MW from Fornelia, of which the Aragonese firm maintains management. And it also bought another 1,000 MW from OPDE. It was also awarded 100 MW in the last renewable energy auction. This has multiplied the company’s valuation, which according to financial sources now stands at over 2,000 million euros.
The company is now looking for a new partner to drive this new phase of growth. For this the company has hired JP Morgan and Santander. The idea is that they subscribe to capital increases with which the company can execute its pipeline. There is also the possibility that the two funds in the shareholding will use the opportunity to sell all, or at least a portion, of their shares and raise cash.
Another partner of the company was Macquarie, which decided to dispose of its stake, which had been acquired by the current shareholders. He then also sold a package of solar thermal plants which Brooke shared with its shareholder to the German fund Commercial for 110 million.
Brooke multiplied its profits in 2021. According to accounts for that year, according to previous accounts submitted to the Mercantile Registry, it grew from just 600,000 euros in 2020 to around 10 million euros the following year. Meanwhile, the income was multiplied by 8. They increased from 2.5 million to 15.68 million. This improvement in result was a boost to Badger’s commitment and wealth to the firm, which earned seven million euros in dividends last year.
Under Luis Venero as CEO, the company’s largest presence is in Spain, where it has three plants in operation, twelve under development and another under construction. Internationally, the group is only present in Japan, where it has 14 plants. By annual accounts, about 30% of revenues came from these plants in Japan, which are all operational. Another lever of its growth is the leap from solar to wind through hybridisation, which will add another 1,000 MW to its portfolio.
The company is facing a sale with a financial debt of ₹2.3 million. This, for the most part, matches the financing lines offered by Santander and CaixaBank, shielded with ICO guarantees. It also has another 1.8 million loans owed by its shareholders, which have been canceled during 2021. The cash amount is eight million.
The Brooke operation shows that investors’ appetite for Spanish renewal doesn’t end there. The war in Ukraine and cuts to Russian gas supplies to Europe have only encouraged the old continent to take the final leap to renewable energy. Given the investment plans drawn up by the European Union, the funds see a magnet to establish themselves in the sector. Proof of this has been the IPO of OPDE this summer, the only company that managed to go public last year.