Waga Energy, a French producer of renewable natural gas (RNG) from landfill emissions, reported a sharp rise in first-half revenues as output from its expanding portfolio of projects helped offset declining engineering sales.
The company, listed in Paris, said on September 29th that group revenues reached €27.4m in the six months to June 30th, up 7 per cent year on year. The gain was driven by a 39 per cent jump in RNG production revenues, which now form the backbone of Waga’s business, compensating for an expected fall in engineering, procurement and construction (EPC) turnover following the completion of its Hartland project in Canada.
Operating profitability is within reach. Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at minus €0.2m, a €2.3m improvement on the same period last year. Management reaffirmed that the group remains on course to reach EBITDA breakeven before the end of 2025.
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Production volumes continued to climb. Across France, Spain, Canada and the United States, Waga injected 326 gigawatt hours (1.1mn MMBtu) of RNG into local gas networks during the half, a rise of 28 per cent compared with the previous year. The company said this displaced some 80,500 tonnes of carbon-dioxide equivalent, highlighting the environmental benefits of substituting fossil natural gas. Average uptime for WAGABOX upgrading units in service for more than a year held steady at 95 per cent.
Capital expenditure more than doubles for Waga Energy
The expansion comes with heavy investment. Capital expenditure more than doubled to €59mn, with 19 new WAGABOX units under construction worldwide, most of them in the US. Once commissioned, these projects will feed into a portfolio that already comprises 31 operational units across four countries, representing installed capacity of more than 1.5 terawatt hours a year (5.1mn MMBtu).
The group reported signed annual recurring revenues of €177m, up 67 per cent from €106m a year earlier, reflecting growth in operational assets and new projects underway. Management maintained its target of reaching €400m in contracted recurring revenues by the end of 2026, though revenue of around €200m and installed capacity of 4 TWh are now expected to be achieved with “several months’” delay compared with earlier guidance.
Liquidity remains robust. At end-June the group held €55m in cash and had €94m in available undrawn debt, for total liquidity of €149m. During the half it raised €24m in additional corporate debt and secured a C$25m (c. €16m) 19-year loan to refinance three Canadian projects.
Extensive commercial pipeline
Waga’s commercial pipeline remains extensive, with 196 identified projects representing potential installed capacity of 16.7 TWh a year. The company expects to sign additional agreements in the coming quarters, aided by the financial backing of EQT, its private-equity partner, either organically or through bolt-on acquisitions.
In a statement, the company said it remained “ideally positioned” to capitalise on the global opportunity in converting landfill gas to RNG, citing the competitiveness of its proprietary technology and proven execution record.
With RNG output climbing, steady progress towards breakeven, and a growing foothold in the US market, Waga Energy is betting that demand for clean, grid-compatible fuel will underpin a trajectory of “strong and profitable growth” in the years ahead.
