Hidden in an industrial estate in Badalona, Audax maintains the same company essence in its humble offices outsider that its largest shareholder, José Elías, without a suit or tie, spreads on the networks. With humble origins and perseverance, both the businessman and the energy company, which has close to a 2% market share in Spain and a turnover of 1,389 million as of September, have carved out a niche for themselves in a market dominated by giants such as Naturgy or Iberdrola. . A former Elías banker, Audax CEO Óscar Santos steers the ship with ambition and poise, pointing to European expansion, demand flexibility and energy storage as future opportunities. Previously, he had already managed Aspi, a company specialized in occupational risks that Elías also bought.
Audax is a company that you don’t see on posters or advertisements, but José Elías is very well known. How does Audax reach customers? Does the fame of its largest shareholder help?
We do not invest in advertising and marketing, but people do know the company more thanks to José Elías. There are companies that spend on marketing and then make losses, we prefer not to do it. José does make us better known in our market.
A more traditional voice would be afraid of that influencer profile that breaks with the traditional businessman.
We do not have the ability to decide. He does what he wants and so far that makes the Audax brand known. We believe that the fact of being on networks is not negative, it depends on the message that is conveyed. So far, I think it is positive, because the brand is better known thanks to Audax, and we are not in favor of marketing, unless you have something very specific to sell.
Interview general director of Audax, Óscar Santos / Photo: Carlos Baglietto
He always says that he delegates a lot to his workers. What is day to day like?
He is more in the strategic part. I explain to him where I think the company is going and he has the last word. He has a lot of business, so he needs to have people telling him where we are going. We have a team that thinks about where we take the company: inorganic purchases, new businesses. And if it’s okay with him, let’s go.
And where is the company going? Do you feel like one of the big ones or one of the small ones?
We feel comfortable in the position of being the largest of the small companies or the smallest of the large energy companies. But we want to grow. We want to reach 200 million EBITDA.
And where do you hope to grow?
We are analyzing markets such as France, Germany or Austria. In France we have production, but not marketing. And our goal is to integrate vertically in the markets where we are. Germany is a spectacular market, with very few defaults, and there it is the other way around: we have marketing but no production. We will not ensure that what we generate covers our clients 100%, because right now we have a portfolio of 16 terawatts and we produce 262 mw of installed capacity. But we do want to be vertically integrated. In the medium term, we are also interested in Nordic countries such as Denmark or Sweden.
We feel comfortable in the position of being the largest of the small or the smallest of the large energy companies, but we want to grow to 200 million EBITDA
How do you see the regulatory framework in Spain and Catalonia?
I think it is something general in Spain that sometimes it costs a lot to produce energy. In Italy it can be worse, you can stay up to two years. We are not in Catalonia too much, not for a regulatory reason but because we try to go where there are better resources. In this market, the important thing is to have a diversified origin of generation, which is why the large companies do better, they manage to flatten the production curve and equalize customer consumption. We have a brutal opportunity in Spain. Millions of euros fall from the sky in the form of solar energy and we should take advantage of it, it could make us more competitive at the European level. Especially if we can offer almost free energy and have the capacity to store so as not to encounter a difference in night-day prices.
What new businesses do you hope to open?
We want to bet on the flexibility of demand precisely because in Spain the production and price curve does not coincide with that of customer consumption. We want to help the market regulate itself and give mass consumption the option of plugging in and unplugging at certain times depending on production and price.
With Artificial Intelligence?
Yes, there are algorithm and AI formulas that can help the client.
Interview general director Audax, Óscar Santos / Photo: Carlos Baglietto
That’s what batteries are also for. Will you get into this business?
It is early to say, we wait for a regulation to be approved, but if it is interesting, we consider entering, yes.
And in data centers?
We are talking to some clients to provide them with some PPA, there are many high consumption clients that need supply. But we will not build data centers. We cannot give details of the clients.
And offshore wind?
It is an option, but it is very expensive. Now what we should invest in is repower of turbines, since technology allows you to produce much more energy with a single turbine.
We are talking to data center customers about powering them, but we won’t do it ourselves
You are betting more on photovoltaic than on wind power lately, right?
We have more portfolio, but at the European level we have more or less half and half, the idea is to find a balance. Photovoltaics fits us better with the pime, which opens at 8 a.m. and closes at 8 p.m., the consumption curve fits us.
Is your strong point the price?
Yes, the price and 100% renewable energy.
How do you explain the 92% improvement in profits until September (48.2 million) with 22% less turnover, 1,389 million?
We sell a commodity, if it becomes very expensive, the turnover goes up. But we charge a fixed fee for each megawatt. The important thing is not the billing, it is the megawatts you supply to your clients. In 2021 we supplied 13 twh but the price was 200 euros mw hour, that’s why we invoiced more. But if you look at the margin, our ebitda is a fixed fee for each megawatt. I don’t care what the price of the commodity is. In the event of a drop in billing, we are protected. The important thing is to offer coverage, in this sector, if you are experiencing falling prices you can take advantage of the fall. It is riskier if the energy goes up, because you will have to cover the rise with the price you have set. We do not speculate, we are not traders. If I sell to you at a fixed price, I cover that position.
Interview general director Audax, Óscar Santos / Photo: Carlos Baglietto
How do they face the debt of 266 million, with a significant part maturing in 2027?
The idea is to extend a part of the 180 million that mature in 2027. Our objective is to stabilize the return on the debt with the generation of cash. I don’t like having peaks and my goal is to keep it close to cash generation. We have 60, 70 million a year in cash. We want to be able to renew these 180 million so that there are 100 a year. We will renew a part of the debt. At the end of 2026, we see ourselves below twice the financial debt – ebitda and an ebitda of 100 million euros.
Isn’t the energy market very risky without the scale of the majors?
Yes, it is risky. But as long as you have generation and you have clients, it’s perfect. If you are only a generator, you either close a PPA with the marketer or you may have problems in the future.
They are a 100% renewable energy company but they also sell gas. Do you have any decarbonization plan?
We look at actions to sell green gas such as carbon compensation or guarantees of origin and in one of the countries we are in, Holland, there is the objective of reducing gas. We adapt a little to each market and its scenario.
They have a certain outsider image, they are in that size that I mentioned when I was little among the big ones. What is your relationship with large companies and employers?
We suffer the same as the big ones, but we can’t bother them much. We have a market share between 1.5 and 2%. For the big ones, it’s nothing. But we are in such a regulated market that when we analyze how the regulations will come out, we try to think that it will come out in the way that benefits them.
We suffer the same as the big ones, but we can’t bother them much.
Is that bad for the customer?
No, the regulation looks after the client. Like when the energy crisis caused price increases, the regulation came out harming marketers and benefiting the customer.
They received a fine from the CNMC for scamming customers by saying they were from another operator. She was suspended. What situation is it in?
It was an external agency that did it and we are the affected party. We do not want any client, domestic or SME, who does not want to work with us. In fact, we make a welcome call like Audax. We believe that we will win the resources. We have closed the domestic business and our target now is the industrial client.
Crónica Global publishes that they have a trial in Spain for an alleged irregularity in the sale of a wind farm in Montenegro. How is this situation?
It is a very old issue and we would have to talk to the legal department, but it is something that we already won in its day.
We are an affected party in the sanction that the CNMC imposed on us and that has suspended
Changing your field, weren’t you dizzy to enter a sector as complex as energy coming from banking?
It is a bit dizzying, yes, and there is always a bit of impostor syndrome, because you make decisions worth many millions of euros. But the CEO’s job is to think strategically, have the best team and give them the tools to do their best. My job is the easiest.
But you have to know the sector.
Yes, you have to learn. It took me two years to learn in the occupational risk sector. In energy, it took me a year and a half because I encountered the pandemic and an energy price crisis that forced me to learn everything at once. Crises make us all a little bit alike, because no one has ever experienced something like this before. I came from a crisis in Aspi and I am good at crises. And you see yourself capable of doing it. .
Did you know José Elías before?
Yes, I have been from Badalona all my life. I worked in banking all my life and in 2010 when he created Orus I started working with him, I was his banker, I kept his accounts. After a while he suggested that I join a company that he had bought, ASPI, spun off from Asepeyo. He proposed to me to be CEO and when we went public he suggested I move to Audax.
**How does Audax’s focus on fixed-price PPAs for renewable energy differentiate its business model from competitors and what are the potential implications of this strategy for industrial clients in a volatile energy market?**
Here’s a breakdown of the interview with thematic section questions, designed to encourage discussion and diverse perspectives:
**I. Audax’s Business Model and Market Position**
* **Audax’s Niche:** Audax positions itself as a provider of 100% renewable energy with a strong focus on fixed-price PPAs. How does this approach benefit both industrial clients and Audax itself in a volatile energy market? What are the potential drawbacks of this strategy?
* **Competition with Giants:** Audax acknowledges its relatively small market share compared to major energy companies. How does Audax plan to compete effectively and grow its customer base? Should smaller players like Audax articulate a more disruptive role in the energy sector?
* **Regulation and Risk:** Audax highlights the impact of regulation on its business. How can policymakers strike a balance between protecting consumers, fostering competition, and encouraging investment in renewable energy sources?
**II. Audax’s Future Plans and Innovation**
* **Energy Storage and Batteries:** Audax shows interest in energy storage, particularly batteries. What specific benefits does Audax see in entering this market segment, and what challenges might they face? How will this technology impact the renewable energy transition?
* **Data Centers and PPA:** What are Audax’s motivations for focusing on dataListfile forPPAs? Is there a strategic alignment between Audax’s renewable energy focus and the high energy demands of data centers? Could this partnership model become more prevalent?
* **Offshore Wind and Repowering:** Audax expresses cautious optimism about offshore wind, favoring the repowering of existing turbines. Why is repowering viewed as a more immediately viable option? How do the costs and timelines of these two approaches compare for renewable energy expansion?
**III. Financial Performance and Challenges**
* **Debt Management:** Audax has a significant debt load maturing in 2027. What are the implications of Audax’s debt refinancing strategy, and how will it impact their future investments and growth? Does the structure of their debt leave them vulnerable to market fluctuations?
* **Profitability and Pricing:** Despite declining revenue, Audax boasts improved profits. How sustainable is this model in the long term? What factors could influence pricing dynamics in the energy sector, and how might this affect Audax’s financial performance?
* **Transparency and Trust:** Audax faced a fine for alleged misleading sales practices. How can the energy industry as a whole build stronger trust with consumers? What are the long-term implications of such incidents on a company’s reputation?
**IV. Audax’s Leader and Industry Outlook**
* **Transition from Banking to Energy:** Óscar Santos went from banking to leading a renewable energy company. What transferable skills and lessons from the financial world have contributed to his success in Audax? What unique challenges does he face leading a company through the energy transformation?
* **Outlook on the Energy Sector:** What are the biggest opportunities and threats facing the renewable energy sector in the coming years? How will technological advancements, government policies, and consumer demand shape the industry’s future?
These questions are intended to spark in-depth conversations, encourage critical thinking, and explore the complexities of Audax’s position within the dynamic renewable energy landscape.
