TERNIENERGIA: 2011 net profit equal to Euro 9,05 million, proposed dividend amounting to Euro 0,19 per share
 

  • Revenues amounting to Euro 169,8 milion: +70% compared to December 31st , 2010
  • EBITDA equal to Euro 15,2 million: +4% compared to December 31st , 2010
  • Net profit equal to Euro 9,05 million: +0,3% compared to December 31st 2010
  • PFN equal to 35,8 million (Euro 34,4 million as at 30/09/2011)
  • As at December 31st were built 247 photovoltaic plants for a capacity equal to 192,8 MWp

The Board of Directors of Terni Energia, a company operating in the renewable Energy sector and listed on Star segment of Borsa Italiana, today approved the draft financial statement and the consolidated financial statement as at December 31st, 2011.
Stefano Neri, Chairman and Managing Director of TerniEnergia, commented as follows:
“During 2011 our Group has managed once again to achieve goods results in accordance with stated goals, even despite having faced a long period of regulatory uncertainty, a penalizing reformulation of the incentive system belonging to the photovoltaic sector and operating in a difficult economic framework. In this context , TerniEnegia has shown, at every level of organization, a significant adaptability and a strong rapid reaction. The Group has started in record time the internationalization activities, enhancing technical skills and know-how acquired during these years operating on the medium-large size photovoltaic of the Italian market. With the purchase of Lucos Alternative Energies and the covenant with Cofely Italia, the Company brought forward the opening of the new business of energy efficiency, with an operating model without technological constraints, no policy driven and the objective of achieving a national leadership in the industrial segment. In 2012 the Group will see additional results of the Power Generation activity, thanks to revenues guaranteed by the entry into operation of 62,1 MWp realized in JV and by 7,4 MWp in full equity. TerniEnergia continues its own path of growth and creation of value, also to benefit shareholders while maintaining a proper financial balance”.

CONSOLIDATED RESULT AS AT DECEMBER 31ST, 2011
The Net Revenues amount to Euro 169,8 million, with a 70% increase compared to 31/12/2010 (Euro 99,9 million). Such a significant growth was given by an excellent operating management . The Group could consolidate its leadership in EPC segment related to the supply of “turn-key” medium and large sized photovoltaic plants, completing 43 new plants, for a total power of 75,7 MWp, in line with respect to the 2010 installed power (77,2 MWp), but with a substantial increase in the average power plant (1,76 MWp compared to 0,98 MWp in 2010).
Notably, 22 photovoltaic parks were built “turn-key” on behalf of Third parties for a capacity of 52,5 MWp, n. 10 plants for a total capacity of 10,4 MWp were built in “full equity”, while the remaining 11 plants were built for joint venture for a total capacity of 12,8 MWp for Power Generation Activity.
The Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), equal to Euro 15,2 million (Euro 14,6 million in 2010), increased up to 4%. This result was influenced by the approval of the 4° Energy Bill which cancelled the previous system of incentives to this sector, based on which the Company has aligned its production policy and personnel. Therefore the Group adopted important managerial actions in terms of optimizing investments efficiencies increase, costs savings and laid down new guidelines for procurement linked to orders already in portfolio.
The operation result (EBIT) is equal to Euro 13,2 million (Euro 13,8 million in 2010), after depreciation and provisions equal to Euro 0,9 million. Operating profitability (R.O.I.) is equal to 25,3% compared to 53,2% of the previous financial year.
The net profit is equal to Euro 9,05 million, +0,3% compared to 2010 (Euro 9,02 million). The capital profitability (R.O.E.) is equal to 39% compared to 42,8% of the previous year.
The Net financial position is equal to Euro 35,8 million (Euro 34,4 million as at 30/09/2011). The change compared to December 31st, 2010 (Euro 5,7 million), is related to support investments in full-equity ( PFN remains very limited in respect with the volumes of the installation and the investments for full equity plants performed during the  2011 which is equal to Euro 28 Million). Non current net financial position is equal to Euro 13,4 million, while the Net Financial Position in short is equal to Euro 22,4 Million. The gearing ratio (PFN/Net Asset) is equal to 1,1.
Performed investments were for an amount of Euro 38,1 million, including Euro 28 Million for full equity plants fully available to the Company. In particular, 2,2 Million of investments were for shareholdings in JV, Euro 4,2 million for the purchase of authorizations related to the construction of photovoltaic plants, Euro 2,3 million for the start related to purchasing Lucos Alternative Energies S.p.A. , Euro 0,5 million for purchasing real estate rights (diritti di superficie), Euro 0,2 million for purchasing lands and Euro 0,5 million for buying equipments and other materials for the purpose of the operation activity, aimed at increasing the production capacity and hardware provisions.
The Board of Directors confirmed the proposal submitted to the Shareholders meeting about thedistribution of a gross dividend per unit equal to Euro 0,19 per share that corresponds to a pay out ratio equal to 58,4%. The dividend shall be paid on May 24th, 2012 and the relevant coupon nr. 2 shall be separated on May 21st, 2012
 
INDUSTRIAL RESULTS AS AT DECEMBER 31ST, 2011
As at December 31st, 2011 the Group built no. 247 photovoltaic plants for a total installed power equal to 192,8 MWp (10,4 MWp of which were performed in “full equity” and 62,1 MWp were performed for joint venture in the context of Power Generation activity). As fas as 10,4 MWp is concerned, they were performed in “full equity”, 3 MWp were sold to third party companies, the remaining 7,4 MWp remain fully available to the Company.
As far as Energy production from solar source is concerned, the 11 equally owned joint venture companies as at December 31st, 2011 owned a portafoglio of 61 photovoltaic plants for a total power of62,1 MWp.
The production of the plants, some of which started running during such period, was equal 63 Million of kWh. In 2012, the built plants will guarantee a production exceeding 80 million of kWh.
 
TERNIENERGIA S.P.A.’ S RESULTS AS AT DECEMBER 31ST, 2011
The net revenues amount to Euro 197,8 million (Euro 126,5 million as at 31/12/2010). The gross operation margin (EBITDA) is equal to Euro 16,5 million (Euro 20,9 million as at 31/12/2010). The operation result (EBIT) is equal to Euro 14,7 million (Euro 20,4 million as at al 31/12/2010). The net result is equal to Euro 7,9 million (Euro 12,8 million as at 31/12/2010).
 
SIGNIFICANT FACTS OCCURRED AFTER THE END OF THE FINANCIAL YEAR
February, 2nd 2012 – The Group signed an agreement for the transfer of the entire representative share of 50% of the corporate capital of the JV Enerflus owned by Lucos Alternative Energies to Ventonovo Energie. The price for the stake sale – conventionally determined by the Parties was Euro 1,625 million – has been fully paid in cash by VentoNovo Energie.
February 22nd, 2012 – As part of its development and internationalization strategy, TerniEnergia established in Athens the Company TerniEnergia Hellas M.e.p.e. which has as its goal the development, construction and operation of industrial-size photovoltaic plants in Greece. The Company started its activity with the management of working sites for the construction of 2 “turn-key” photovoltaic plants without panels supply on behalf of two special purpose vehicle (SPV) both 100 % owned by a major European utility, each plants of a power of approximately 5 MWp.
FORESEEABLE MANAGEMENT EVOLUTION
The changing regulatory framework in the photovoltaic sector has led to a timely review of the Group’s strategic and industrial choices. In particular the limitations imposed on the implementation of photovoltaic plants on the ground in Italy have substantially reduced the return on investments. Ternienergia will continue to strengthen its leadership in the EPC activity through partnership with primary utilities and through the consolidation of the already started internationalization process establishing in foreign markets expertise in the implementation of medium large-size photovoltaic plants of its parent company.The company will continue to develop significantly other complementary business features, including operation and maintenance. This activity is performed both on plants than on own plants and on by third parties. The new strategies of the Group will lead to the choice of facing the reduction of revenues compared to an improvement of profitability and the increase of the results arising from the Power Generation activity.  The Group, during the year 2012, will start a diversification of investments towards the developments of energy efficiency plants both in EPC and in FTT (TPF), which will provide a greater visibility in terms of profit margins during the period of the strategic plan. The Group then aims to bring forward to 2012 the entry into the new business line “Hydro” for which is performing a scouting activity in Italy and Europe for the construction and operation of new plants. 
 

OTHER BOARD OF DIRECTORS’ RESOLUTIONS
The Board of Directors examined and approved the Report on Corporate Governance and proprietaryassets for the financial statement for the Report on the Remuneration of administrators and managing directors with strategic responsibility pursuant to article no. 123-ter del D. Lgs. 58/98, which will be subject to approval by the shareholders’ Meeting.
The Board of Directors has also called for an ordinary shareholders’ meeting to resolve on the financial statement as at 31/12/2011, the distribution of dividends and the remuneration adjustment to the Company’s auditors Pricewaterhouse Coopers S.p.A., since the purchase of Lucos Alternative Energies S.p.A.
The Board of Directors of TerniEnergia, according with “Comitato per Operazioni con Parti Correlate”, has argued for periodic adaptation of the contract of service with the parent TERNI Research SpA, concerning the provision of logistics services, legal and corporate affairs, ICT and space availability, and on adherence to the new edition of the Code of Conduct issued by Borsa Italiana.
The documentation required by local regulations regarding the Shareholder’s meeting will be released in accordance with law and regulations in force.
The Officer appointed for the preparation of accounting and corporate documents , Dott. Paolo Allegretti, states, pursuant to paragraph 2 of art. 154-bis of the consolidated Financial Act, that the accounting information that is contained in this press release corresponds to the results contained in the documents, books, and accounting records.