Edisun Power Europe AG / Key word(s): Half Year Results
26.09.2013 07:00
Release of an ad hoc announcement pursuant to Art. 53 KR
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Zurich, 26 September 2013
Ad-hoc-Press Release from Edisun Power Group
2013 Half-Year Results: Extraordinary weather conditions and asset
impairment adversely affect results
- Period of bad weather in the spring led to stagnant returns from
electricity production despite additional capacity
- First positive effects from ongoing restructuring initiatives
- Asset impairment of CHF 1.834 million on installations
- Net loss of CHF 2.995 million
- Reduced earnings expectations require accelerated cost reduction
measures
Despite an increase in installed capacity of 25% (+3.1 MW) versus the
previous year, returns from electricity production increased only
marginally to CHF 3.982 million (first half of 2012: CHF 3.923 million) due
to the extraordinary lack of sunny weather in central Europe. Revenues from
the sale of electricity in Switzerland, Germany and France fell by CHF
0.608 million or 19% compared with the first half of 2012. The Spanish
installations, however, did meet forecast electricity production.
The business realignment initiative begun in early 2013 is on track.
Suspension of the development of photovoltaic installations as well as
administrative cost savings will reduce direct costs by approximately CHF 1
million in 2014, while an initial positive impact of CHF 90'000 has already
been achieved in the first half of 2013.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for
the first six months of the current year amounted to CHF 2.110 million, on
a par with the previous year (first half of 2012: CHF 2.178 million) as a
result of the shortfall in Spain (new energy tax per 1.1.2013) and the bad
weather in central Europe. Due to additional depreciation (+26%) on the
installations that came into operation in the second half of 2012 on
Mallorca and in Huelva, and also to the necessary financial impairment
relating to individual installations (CHF 1.834 million), earnings before
interest and tax (EBIT) amounted to CHF -1.642 million (first half of 2012:
CHF 0.737 million).
After the deduction of interest on external capital and taxes, net income
was CHF -2.995 million (first half of 2012: CHF -0.191 million).
Consolidated equity amounted to CHF 13.481 million (31.12.2012: CHF 15.359
million). The decrease caused by the loss for the first half of 2013 was
partially compensated by the appreciation of the Euro.
Despite the unsatisfactory results, cash flow from operations improved in
the first half year, reaching CHF 0.620 million (first half of 2012: CHF
-0.701 million). Cash flow from investment activities was significantly
reduced to CHF -0.108 million (first half of 2012: CHF -2.145 million).
Analysis of the situation in Spain showed that after adjustments to the law
that aimed to promote renewable energy at the beginning of the year (value
added tax of 7%, adjustment of tariff indexing) and the effects of the new
energy law in force since July 2013, a financial impairment of CHF 0.945
million must be made in respect of certain Spanish installations per 30
June 2013. As the full extent of the effects of the new energy law are not
yet known, further adjustments to these provisions at the end of 2013
cannot be ruled out.
In this context, Edisun Power Group has also undertaken an in-depth
analysis of all the other installations. In accordance with the assessment
of general market risks, and owing to the increased risk premiums,
impairments have been made on the value of installations in France and
Germany amounting to CHF 0.889 million.
Divestment of the small Swiss installations (Press Release of 15 August
2013) has enabled Edisun Power Group to pay off two loans early per 30
November 2013 (4% CHF 2.015 million and 5% EUR 0.450 million, due 30
November 2014).
Due to the changing environment in Spain, the retrenchments that have been
adopted will not be sufficient to allow the Group to deliver positive net
earnings in 2014 as planned. Therefore, the board and senior management are
forced to consider further cost reduction measures.
Edisun Power's 2013 Half-Year Report is available on the Group's website at
http://www.edisunpower.com/en/home-en/investors-en/reporting
Edisun Power Group
A listed European solar energy producer, the Edisun Power Group finances
and operates solar power installations in a number of European countries.
Edisun Power Group AG began its involvement in this sector as far back as
1997. The company has been listed on the SIX Swiss Exchange since September
2008. Edisun Power has been able to grow continuously over the years, and
the company has amassed wide experience in the realization of both national
and international projects. As of mid-August 2013, Edisun Power Europe AG
owned a total of 65 solar energy installations in Switzerland, Germany,
Spain and France, with a total capacity of 14.5 MW.
For more information:
Edisun Power Europe
Ltd.
Universitätstrasse 51 Rainer Isenrich Giatgen Peder Fontana
8006 Zurich CEO/CFO Chairman of the Board of
Directors
info@edisunpower.com Edisun Power Europe Edisun Power Europe Ltd.
Ltd.
www.edisunpower.comTel. +41 44 266 61 20 Tel. +41 44 266 61 20
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Language: English
Company: Edisun Power Europe AG
Universitätsstrasse 51
8006 Zürich
Switzerland
Phone: +41 44 266 61 20
Fax: +41 44 266 61 22
E-mail: info@edisunpower.com
Internet: www.edisunpower.com
ISIN: CH0024736404
Valor: A0KFH3
Listed: SIX
End of Announcement EQS Group News-Service
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