DGAP-IRE: Electrawinds SE: Financial results 1H2013
Electrawinds SE / Release of an announcement according to Article 37x of the
WpHG [the German Securities Trading Act]
Interim report according to Article 37x of the WpHG, transmitted by
DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Financial results 1H2013:
) Solid performance and growth in Wind, Solar and solid biomass
) Significant start-up losses in 2nd generation biodiesel activities
) One-off impairments following updated business plan
) Progress of cost reduction measures in development activities
) Progress on the implementation of the capital reinforcement plan
Luxemburg | Electrawinds SE, a renewable energy producer from biomass, wind
and solar resources, today released its 1H2013 Interim Financial Report.
> Publication 1H2013 Results
During the first 6 months of 2013, total operating revenues increased to
EUR63.9m (+26%). The total increase of EUR13.1m is attributable to the
Wind segment (+EUR3.4m), the Bio segment (+EUR9.7m) and the Solar segment
(+EUR0.4m) compared to the same period last year.
EBITDA amounted to EUR11.9m, a EUR1.3m decline versus the comparable period
of 2012 and attributable to the Bio segment. The Wind and Solar segment
EBITDA increased by EUR3.0m (+22%) whereas the Bio segment EBITDA decreased
by EUR6.9mio to EUR-0.1m due to start-up losses in 2nd generation biodiesel
The recurring operating result decreased from EUR-0.9m in 1H2012 to
EUR-5.0m. The reported operating result amounts to EUR-17.1m and includes
impairment charges of EUR12.1m on liquid biomass activities and on some
development projects in line with the business plan approved by the Board
The financial result amounted to EUR-12.6m. Interest charges increased by
EUR1.3m to EUR13.8m. Revaluation of financial instruments had a positive
(non-cash) effect of EUR1.1m.
Income tax of EUR7.6m (non-cash) is mainly attributable to the reversal of
the deferred tax asset on the Bio segment (EUR5.9m).
The net result of the Group amounted to EUR-38.4m compared to EUR-12.0m at
the end of the first semester 2012. Excluding one-off elements
(impairments, new fair value changes and reversal of deferred tax assets),
the net result amounts to EUR-17.0m, a slight decrease compared to the
EUR-16.0m net result excluding one-off elements posted in 1H2012.
Impairments booked in 1H2013 represent 3% of total assets.
> Operational update:
Operating revenues in wind grew 21% to EUR 19.4m and EBITDA grew by 22% to
EUR15.1m. This solid growth is attributed to the commissioning of new wind
farms in Belgium and Ireland in 4Q2012.
Operating revenues in solar grew 29% to EUR1.7m and EBITDA grew 27% to
EUR1.4m. This solid growth is attributed to the commissioning of new solar
projects in Belgium and Italy in the course of 2012.
The performance in the bio segment shows a mixed picture. On the one hand,
the performance of the solid biomass activities was outstanding: EBITDA
grew 19%, confirming its robust business model.
The liquid biomass activities incurred significant start-up losses in the
2nd generation biodiesel activities and to a much lesser extent in the
rendering activities in Serbia, where the continued increase in volumes is
expected to lead to a positive EBITDA in 2014.
While the installation in Sluiskil (GreenFuel) is producing significant
volumes of biodiesel since July 2013, Electrawinds has concluded a review
of its 2nd generation biodiesel activities and as a result thereof intends
to form a strategic partnership with key industry players in this domain.
This new approach foresees lower, but more stable, future cash flows than
previously assumed. As a consequence, Electrawinds SE has decided to adjust
the carrying value of its Bio segment assets through an impairment charge
of EUR4.1m attributed to goodwill and a reversal of recognized deferred tax
assets of EUR5.9m.
§ Development, Construction and Portfolio Management (DCPM):
In line with the business plan approved by the Board of Directors, the
group has reviewed the existing intangible assets related to non-core
geographies. This resulted in an impairment charge of EUR6.5m. Furthermore,
the group has made good progress in the implementation of the
cost-reduction program at holding level foreseen in the business plan.
> Update on capital base reinforcement
In line with previous announcements and following the signature of the
Memorandum of Understanding between some of the main shareholders of the
Electrawinds SE and the providers of subordinated debt to its wholly owned
subsidiary Electrawinds NV, the company continues its discussions with
potential new core investors and financial institutions with the aim of
significantly reinforcing its capital base.
The Interim Financial Report has been posted on ewi.electrawinds.eu under
the section 'Financial Reports'. Electrawinds will host a conference call
for Analysts and Investors on Monday 2 September at 15.00 CET. An Analyst &
Investor update will be published on the website of Electrawinds SE shortly
before the call under the section 'Investor Presentations'. Interested
Analysts and Investors can obtain a dial-in code by sending an email to
Eddy Baeke - CFO | +32 (0)59 569 700
Bert Heyman - Investor Relations | +32 (0)59 569 700
Cautionary statement regarding forward-looking statements This press
release contains certain forward-looking statements. Any forward-looking
statement applies only on the date of this press release. Such statements
are based on current expectations and convictions and, by
their nature, are subject to a number of known and unknown risks and
uncertainties as a result of which the actual results and performance may
differ substantially from expected future results or performance expressed
or implied in the forward looking statements. The information and views
contained in this press release may change without prior notice, and
Electrawinds SE has neither the intention nor the obligation to update
forward-looking statements in this communication, except insofar as it is
obliged to do so by any applicable legislation or by the rules of any stock
exchange on which its shares may be traded.
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Company: Electrawinds SE
40, Avenue Monterey
Grand Duchy of Luxembourg
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