Approved the half financial report as at September 30th, 2012. Ebitda Margin 9.3% (+32.8%)

The Board of Directors of TerniEnergia,  a company operating in the renewable energy sector, energy efficiency and waste management, listed on Star segment of Borsa Italiana, approved today the half financial report as at September 30^th,  2012.

Stefano Neri, Chairman and Managing Director  commented as follows:  

“The predictive power of market scenarios, timeliness of reaction, the dynamic operating, the  strategy of integrating new businesses related to the ‘circular economy’ in the mosaic of industrial activities of TerniEnergia, enabled the Group to successfully respond to the challenges imposed by the difficulty of context and by a penalizing Italian regulatory framework. Today TerniEnergia, both in terms of visibility on the stock market  and in  terms of the results of its strategic repositioning, can be said to be ready to pursue a new path of growth in the future. In this direction, the development of the Baseline Industrial Plan 2013-2015 represents a clear reference  scenario  and able to intercept the most advanced trends in the field of reference .

We express our satisfaction to have completed the merger by incorporation of TerniGreen into  TerniEnergia very quickly and in a very linear way , contributing significantly to the growth of the Group and the enhancement of synergies. It should be underlined , therefore, the significant capital  increase of the company, on the one hand, and the utmost care to maintain the financial balance, evidenced also by the improvement in their indexes, on the other. These results are extremely qualifying to gain access to the financial markets, despite the most stringent requirements of the new regulations for the sector.

These circumstances make us to be confident in anticipating that TerniEnergia will be able to further increase the net profit in the next quarter, compared to the present interim report “

On September 12, 2012 the merger operation by incorporation of TerniGreen in TerniEnergia has been completed and  consequently, the acquiring company has issued no. 9,792,000 new ordinary shares for the merger, with an increase in total capital of  Euro 27.3 million.

The assets and liabilities attributable to the Group TerniGreen and its economic effects have been consolidated in TerniEnergia since September 14^th,  2012, ie the date from which tax and legal effect of the merger have been registered , and for this reason the contribution to the Group’s results TerniEnergia as at September 30^th , 2012, from activities  attributable to TerniGreen, was marginal, and will become more evident in subsequent quarters. However, the merger reflects the situation as at  early September 30^th , 2012, its balance sheet, with particular reference to the increase in shareholders’ equity of the Group.

The net revenues amounted to Euro 41 million (Euro 153 million as at September 30th, 2011), with a decrease mainly due to the Italian regulatory changing as well as the decision not to provide the photovoltaic panels for the new plants built for third parties.

L’EBITDA was of Euro 3.8 million compared to  Euro 10.7 million recorded as at September 30th, 2011. L’Ebitda Margin was of  9.3%, a 32.8% increase  compared to the same period of  2011 (7%).

The operation profit (EBIT) was of Euro 2.3 million (Euro 9.7 million as at September 30th,  2011) after depreciation, amortization and provisions amounted to Euro 1.4 million (Euro 1 million as at September 30, 2011).

The net profit was Euro 2.8 million ( Euro 7.7 million as at September 30^th, 2011) and includes  the share of profit of  JV’s activity  which amounted to Euro 3.2 million, an increase of 14.2% compared to September 30, 2011.

The Net financial position was Euro 58.8 million (Euro 35.9 million  as at  31/12/2011). Non -current net financial position amounted to Euro 26.6 million, while the short-term  net financial position amounted to  Euro 32.2 million. The NFP  short-term/ equity, was equal to 0.7x, and the ratio  NFP short-term  / Net working capital was equal to 0.84 x, both remained well below the unit in a complete safety area.

The total number of plants built by TerniEnergia from the beginning of its activity until  September 30^th , 2012 increased to 258 for a cumulative  power of 225.4 MWp ( 9.1 MWp of which  were 100% in ownership of the company and 61.1 MWp were for the joint venture   activity of Power Generation). The total  energy production from 100%  fully owned PV plants and  those in Joint Venture for the activity of power generation, amounted  in the quarter approximately to 30 million kWh. For the entire year 2012 the built plants fully owned by the company  will  ensure a production  over 80 million kWh

During the third quarter have been realized  totally 6.6 MWp . Notably , a PV plant was built on behalf of third parties in Greece, with an installed capacity of 5.9 MWp, while a company 100% fully owned PV plant has been completed in the Lazio region for a total capacity of 0.7 MWp.

Furthermore, during the same period has been completed the installation of anaerobic bio-digestion and composting of GreenASM in Nera Montoro, authorized to process the treatment of 43,500 tons of organic fraction of municipal solid waste (MSW)

The following plants aimed at material and energy recovery are in advanced stage of construction:

–       Composting plant of Calimera (LE), authorized to process the treatment of 30,000 tons per year. For this plant has also been requested the permission to implement the  energy recovery phase through anaerobic MSW bio-digestion;

–       Pyrogasification plant of Borgosesia (VC), fueled by biomass (virgin wood), authorized to process  the treatment of 8,000 tons / year

As at  September 30^th,  2012 the Group had the  joint control –  together with a partner of primary level  – of twelve companies having as their object the identification, development, financing, design, construction, commissioning, operation and management in Italy of industrial sized photovoltaic plants , and the sale of electricity produced by them.

Pursuant to the provisions of IAS 31 – Interests in Joint Ventures, the Group has opted for using the equity method for accounting  joint venture’s result  recording  the Groups’ results in the subject line of consolidated  and separated income statement  “Share of income from joint ventures”. The following table shows the main economic information of the Group TerniEnergia if,  as at September 30^th,  2012 and 2011 the Joint Venture results would have been accounted  using the proportionate method that is to collect the portion attributable to all assets and liabilities, income and expenses arising from the financial statements of the joint venture.