Eidf, in free fall: loses 1,500 million euros on the stock market in two days

The stock market crash of the photovoltaic installation company Eidf continued on Tuesday after the doubts uncovered by the audit and a forensic report on the company’s management. If yesterday their shares lost 70% of their value, now they add another fall of 56% on the price with which they started this morning, according to the information offered by BME after half past five in the afternoon. The accumulated capitalization loss between Monday and Tuesday amounts to 1,496 million, and the shares have gone from 29.76 euros to 3.90.

During the day the movement of titles was intense, with 849,229 operations, because yesterday’s sharp drop could have triggered automatic sales in many investment portfolios. The price, which ended on Monday at almost 9 euros, started with slight increases that quickly vanished. This Tuesday, however, BME was able to match the offer of titles -something that did not happen the day before because the offer of shares could not find buyers- and the price fluctuated throughout the day.

In this time, the company has not communicated anything else to the market after the CNMV published several paragraphs of the aforementioned forensic report on August 24 where accounting practices were questioned. In its conclusions, the report highlights that in some of the activities and operations with third parties “situations have been identified in which documents have been created, modified or falsified”. Some examples of these practices would refer to the company’s relationship with its customers, debtors and partners. In relation to three partners, “evidence of possible falsification of contracts and documents prepared by the company’s managers, in order to justify the lack of control over the SPVs” was found. The SPV or Special puppy vehicle are companies established with the sole purpose of being a vehicle for investment in renewable energy projects. The PwC audit, for its part, found that the firm ended 2022 with a negative working capital amounting to 20.9 million and losses of 2.7 million after entering 297 million. The document warned that “other possible errors” could arise in the accounts later.

The company, which had hired a communication consultancy to manage the reputational crisis, has broken the agreement and does not explain, for the moment, to what extent the stock market crash and signs of unprofessional management are affecting its daily operations. Nor are the semi-annual accounts of the firm known for the moment. The ordinary shareholders’ meeting is called for next September 21 on first call in the Barro industrial estate (Pontevedra), where the company has its offices.

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