Financing an infrastructure or industrial project successfully depends on the project revenues that will service the debt. The cash flows of many projects (renewable energies, environment, construction, mining, tourism, etc.) are affected by the weather conditions.
An abnormal drop in the wind level or a significant rainfall reduction will affect energy production, associated revenues, and the ability to meet the debt payments. The number of visitors at amusement parks, holiday resorts or open air accommodation sites is also heavily dependent on weather conditions. A series of seasons suffering from unfavorable weather will inevitably affect debt servicing.
Meteo Protect offers financial cover solutions in the form of insurance or derivatives designed to reduce or eliminate income dependency on weather conditions and guarantee the expected profitability of a project while optimizing capital allocation.
Meteo Protect has also developed weather risk assessment tools for short and medium-term funding so that investors can base their risk premium on objective information.
Financial asset performance may depend on weather hazards. Many companies operate in weather-sensitive sectors, and the weather also affects many raw materials.
Meteo Protect develops financial models and products that use weather information to determine and adjust investment strategies and improve the performance of the selected assets.
Weather conditions have an impact on revenues or costs, which could jeopardize the financial stability of a takeover when the target operates in a weather-sensitive sector.
A takeover or company acquisition requires a meticulous risk assessment to avoid overpaying for the target on the one hand and to understand the uncertainties surrounding the future cash flows on the other. It is essential to make sure that revenues are sufficient to meet potential debts repayments, cash flow needs, and profit preservation.
In the event of an LBO, the long-term success of the operation is determined by the guarantee of profitability in the first few years.
Tourism, gardening, textiles, energy, drinks, catering, mining, construction, etc. In all these domains, Meteo Protect has demonstrated its expertise and the value of its hedging tools that reduce risk and strengthen the feasibility of a buy-out or buy-back operation.
The revenues or the profitability of many companies drop in the event of adverse weather conditions. It is essential to know the risks threatening the company and the links between financial performance and weather conditions to be able to adjust progressively the forecast and avoid unpleasant surprises.
The Meteo Protect experts determine the nature of the weather risk the company is facing, work out the impact of the weather on sales or EBITDA for each reporting period, provide the interpretive tools necessary to compare results from one financial year to another assuming a constant climate, and prepare scenarios from which analysts can make recommendations.
The current climate change increases the effects of natural climate variability, which then becomes a significant source of uncertainty for the companies operating in weather-sensitive sectors. Weather-connected profit warnings proliferate, and the increase in weather anomalies renders more difficult the interpretation of company profits and the comparison from one year to the next
Kepler-Cheuvreux has chosen Meteo Protect to evaluate the weather risk of listed companies to enable investors and analysts to anticipate its impact on the value of shares and sector indices.
Kepler-Cheuvreux is a dealer in stocks, interest rate and structured products with the widest research cover in Europe : 700 stocks, 29 sectors, 12 countries.
The company has been ranked No. 1 local broker in the latest Extel study.