Voltalia slumps after Brazil's grid operator curtails power output
** Shares in Voltalia VLTSA.PA slump 16% after the electric power stations company said Brazil's grid operator had imposed an electricity production curtailment, a move that could strongly impact its 2024 core profit
** The grid operator's move is intended to stabilize the network after blackouts in August last year
** A months-long production cut would strongly impact 2024 EBITDA, Voltalia says, adding it is working to reduce the duration and to be financially compensated
** "Although electricity production is traditionally higher in H2, this time, curtailments could significantly reduce production capacity, consequently affecting revenue (historically 70% higher in H2 compared to H1) and EBITDA," says Midcap Partners
** The broker lowers its 2024 EBITDA forecast for Voltalia to 210 million euros ($232.6 million) vs Voltalia's guidance of around 255 million euros
** The shares are heading for their worst day in about twelve years if the losses persist
($1 = 0.9029 euros)
Reporting by Olivier Sorgho
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