ENP Newswire - 11 August 2014
Release date- 08082014 - August 6, 2014, Geneva, Switzerland - Etrion Corporation (TSX: ETX) (OMX: ETX), a solar independent power producer, today released its condensed consolidated interim financial statements and related management's discussion and analysis for the three and six months ended June 30, 2014.
Production: Produced 35.4 million (2013: 37.1 million) and 51.9 million (2013: 53.1 million) kilowatt hours of solar electricity from 17 solar power plants in Italy during the three and six months ended June 30, 2014, respectively.
Construction: Accelerated construction of the 70 megawatt ('MW') solar park in the North of Chile ('Project Salvador'), being built by SunPower Corporation and owned initially 70% by Etrion, 20% by Total Energie Development, a subsidiary of Total S.A., and 10% by Solventus Chile SpA. Project Salvador is now expected to be fully operational by the end of 2014.
Development: Through the partnership with Hitachi High Technologies Corporation, a subsidiary of Hitachi Ltd., to develop utility scale solar projects in Japan, Etrion advanced on the development of its first two projects, totaling 34 MW. Financial close for both projects is expected before the end of September 2014, with construction to commence shortly thereafter.
Revenue: Generated revenues of US$17.8 million (2013: US$18.4 million) and US$26.1 million (2013: US$26.7 million) during the three and six months ended June 30, 2014, respectively.
EBITDA: Recognized earnings before interest, taxes, depreciation and amortization ('EBITDA') of US$14.2 million (2013: US$14.3 million) and US$18 million (US$19.1 million) during the three and six months ended June 30, 2014, respectively.
Bond Financing: Completed a bond issue in April 2014 of EUR80 million in senior secured bonds in the Norwegian bond market at 8% annual interest with a 5 year maturity, a portion of which was used to redeem the previous EUR60 million corporate bonds.
Cash and Working Capital: Closed the second quarter of 2014 with a cash balance of US$197.9 million (December 2013: US$94.9 million) and positive working capital of US$180 million (December 2013: US$47.5 million).
Marco A. Northland, the Company's Chief Executive Officer, commented, 'The first half of 2014, was a transformational period for Etrion as we were able to raise over US$185 million in the capital markets, significantly strengthening our balance sheet. We now have a fully funded diversified near term growth platform that will complement our Italian portfolio going forward.
In Chile, our 70 MW Project Salvador remains ahead of schedule and is expected to be fully operational by the end of this year. In Japan, we have made excellent progress on our first two projects, together with Hitachi High Tech, totaling 34 MW, with financial close expected before the end of September 2014. Japan is a very exciting market for Etrion, working alongside Hitachi High Tech, where we expect to have 100 MW of projects shovel ready or under construction by the end of 2015.
Mr. Northland continued, 'As communicated previously, certain changes were proposed to the Italian Feed in Tariff ('FiT') regime and we are still awaiting the final version of the law to determine exactly what impact these changes will have on our Italian portfolio. Based on our preliminary analysis, we are confident that we will be able to meet our covenant obligations associated with the project debt.
We are exploring all options to best optimize the economics, given Etrion's strong track record in Italy and above expectation performance. The proposed changes highlight the importance of our strategy shift two years ago to diversify into new markets with different contract regimes. As our growth is focused on countries outside of Europe, Italy will represent less than 50% of our expected installed capacity in 2015.'
During the three months ended June 30, 2014, Etrion reported a net loss of US$1.4 million (loss per share of US$0.005) compared to a net loss of US$0.2 million (loss per share of US$0.001) for the comparable period of 2013. The net results for the second quarter of 2014 were adversely impacted by lower solar irradiation, a reduction in the spot market price in Italy and non recurring finance costs associated with the early redemption of the previous EUR60 million corporate bonds.
During the six months ended June 30, 2014, Etrion reported a net loss of US$9.6 million (loss per share of US$0.031) compared to a net loss of US$5.7 million (loss per share of US$0.028) for the comparable period of 2013. The net results for the first half of 2014 were adversely impacted by lower solar irradiation, a reduction in the spot market price in Italy and non recurring operating and general and administrative expenses as well as finance costs associated with the early redemption of the previous EUR60 million corporate bonds.
Etrion Corporation is an independent power producer that builds, owns and operates utility scale solar power generation plants. Etrion owns 17 solar power plants in Italy with approximately 60 MW of installed capacity and has a 70 MW solar project in Chile under construction that is expected to be operational by the end of 2014.
Etrion is also actively developing greenfield solar power projects in Chile and Japan. The Company is listed on the Toronto Stock Exchange in Canada and the NASDAQ OMX Stockholm exchange in Sweden under ticker symbol 'ETX'. Etrion's largest shareholder is the Lundin family, which owns approximately 24% of the Company's shares directly and through various trusts.
For additional information, please visit the Company's website at www.etrion.com
Tel: +41 (22) 715 20 90