Etrion Releases Third Quarter 2014 Results
November 6, 2014, Geneva, Switzerland – Etrion Corporation (“Etrion” or the “Company”) (TSX: ETX) (OMX: ETX), a solar independent power producer, today released its condensed consolidated interim financial statements and related management’s discussion and analysis (“MD&A”) for the three and nine months ended September 30, 2014.
- Production: Produced 34.6 million (2013: 37.7 million) and 86.5 million (2013: 90.7 million) kilowatt-hours of solar electricity from 17 solar power plants in Italy during the three and nine months ended September 30, 2014, respectively.
- Chile Construction: Completed construction of the 70 megawatt (“MW”) Salvador solar park in northern Chile (“Project Salvador”) five months ahead of schedule and under budget. The solar park was built by SunPower Corp. and was connected to the electricity grid on November 3, 2014.
- Japan Construction: Started construction on the first 34 MW in Japan owned 87% by Etrion and 13% by Hitachi High-Technologies Corporation (“Hitachi High-Tech”), a subsidiary of Hitachi, Ltd. (“Hitachi”). The 24.7 MW Shizukuishi and the 9.3 MW Mito power plants are being built by Hitachi High-Tech and are expected to be operational by the end of 2016 and 2015, respectively.
- Revenue: Generated revenues of US$17.1 million (2013: US$19.4 million) and US$43.2 million (2013: US$46.2 million) during the three and nine months ended September 30, 2014, respectively.
- EBITDA: Recognized earnings before interest, taxes, depreciation and amortization (“EBITDA”) of US$13.2 million (2013: US$15.9 million) and US$31.2 million (US$34.9 million) during the three and nine months ended September 30, 2014, respectively.
- Project Financing: Secured long-term, non-recourse project financing for 80% of the construction costs of the 24.7 MW Shizukuishi and the 9.3 MW Mito power plants through Sumitomo Mitsui Trust Bank, Limited, a Japanese financial institution, for a total amount of ¥9,852 million ($90.1 million).
- Cash and Working Capital: Closed the third quarter of 2014 with a cash balance of US$147.2 million (December 2013: US$94.9 million) and positive working capital of US$66.4 million (December 2013: US$47.5 million).
Marco A. Northland, the Company’s Chief Executive Officer, commented, “We continue to execute on our plans to build a global energy platform. During the third quarter of 2014, we secured long-term financing and started construction of our first two Japanese solar projects on-time with our partner, Hitachi High-Tech. In Chile, our 70 MW Salvador solar park was completed and connected to the grid several months ahead of schedule. We look forward to updating investors on our expanding development pipeline in Japan and Chile in the months ahead.”
During the three months ended September 30, 2014, Etrion reported net income of US$1.2 million (earnings per share of US$0.004) compared to net income of US$1.1 million (earnings per share of US$0.05) for the comparable period of 2013. The net results for the third quarter of 2014 were adversely impacted by lower solar irradiation and a reduction in the spot market price in Italy but positively impacted by the recognition of foreign exchange gains as a result of the approximately 8% devaluation of the euro versus the US dollar in the third quarter of 2014.
During the nine months ended September 30, 2014, Etrion reported a net loss of US$8.4 million (loss per share of US$0.026) compared to a net loss of US$4.6 million (loss per share of US$0.023) for the comparable period of 2013. The net results for the nine months ended September 30, 2014, were mainly impacted by lower solar irradiation and a reduction in the spot market price in Italy. The nine-month results were marginally impacted by non-recurring operating and general and administrative expenses, as well as finance costs associated with the early redemption of the previously outstanding €60 million of corporate bonds.
A conference call webcast to present the Company’s third quarter 2014 results will be held on Thursday, November 6, 2014, at 10:00 a.m. Eastern Standard Time (EST) / 4:00 p.m. Central European Time (CET).
North America: +1-647-788-4919 / Toll Free: +1-877-291-4570 / Sweden Toll Free: 02-079-4343
A webcast will be available at http://www.investorcalendar.com/IC/CEPage.asp?ID=172034
The earnings call presentation and the Company’s condensed consolidated interim financial statements for the three and nine months ended September 30, 2014, as well as the related documents, will be available on the Company’s website at www.etrion.com.
A replay of the telephone conference will be available until December 6, 2014.
Replay dial-in details:
North America: +1-416-621-4642 / Toll Free: +1-800-585-8367
Pass code for replay: 61066692
Etrion Corporation is an independent power producer that develops, builds, owns and operates utility-scale solar power generation plants. The Company owns 130 MW of installed solar capacity in Italy and Chile. Etrion has 34 MW of solar projects under construction in Japan and is also actively developing greenfield solar power projects in Japan and Chile. 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 or contact:
Pamela Chouamier – Investor Relations
Telephone: +41 (22) 715 20 90
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Note: The capacity of power plants in this release is described in approximate megawatts on a direct current (“DC”) basis, also referred to as megawatt-peak (“MWp”).
Etrion discloses the information provided herein pursuant to the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication in Sweden at 8:05 a.m. CET on November 6, 2014.
This press release includes a non-International Financial Reporting Standard (“IFRS”) measure, EBITDA. Non-IFRS measures have no standardized meaning prescribed under IFRS and therefore such measures may not be comparable with those used by other companies. EBITDA is useful to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting policy decisions. Refer to Etrion’s MD&A for the three and nine months ended September 30, 2014, for a reconciliation of EBITDA reported during the relevant periods.
This press release contains certain “forward-looking information”. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to electricity revenue from the Italian projects which is subject to confirmation of both the applicable FiT to which the Company is entitled by the state-owned company Gestore Servizi Energetici and the applicable spot market price by the local utilities for electricity sales to the national grid and statements relating to the anticipated timing for completion of the Company’s Shizukuishi and Mito projects in Japan and the Company’s development pipeline in Chile) constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company as well as certain assumptions including, without limitation, confirmation of the applicable FiT and spot market price for electricity sales, the ability of the Company to obtain project financing on economic terms, if at all, and all required permits in a timely fashion and the ability of the Company to identify and acquire additional solar power projects. Forward-looking information is subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the lack of confirmation or reduction of the applicable FiT and the spot market price for electricity sales from the Italian projects by the designated entities, uncertainties with respect to the receipt or timing of all applicable permits for the development of projects, the risk that the Company may not be able to obtain project financing on economic terms, if at all, the risk that the Company may not be able to identify and/or acquire additional renewable energy projects on economic terms, if at all, and changes in applicable laws and regulations that would have a negative impact on existing or future solar projects.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.