TERNIENERGIA: 2010 profits strongly increasing up to Euro 9.0 million (+142% compared with 2009)
Proposed dividend amounting to Euro 0.19 per share
- Revenues amounting to Euro 100 million: +113% compared with December 31st, 2009
- EBITDA equal to Euro 14.6 million: +100% compared with December 31st, 2009
- EBIT equal to Euro 13.8 million: +97% compared with December 31st, 2009
Terni, March 16th, 2011
The Board of Directors of TerniEnergia, 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, 2010.
Stefano Neri, Chairman and Managing Director, commented as follows:
“2010 financial year was characterized by a business growth that was able to double the Group’s dimensions, as it is stated by all the production and financial-economic indicators. In light of the excellent results obtained, in the year 2011 the Group will continue to focus on power generation activity and on the strategy outlined in the 2011-2013 industrial plan. Also this year we will propose to the Shareholder’s Meeting to approve the distribution of dividends with a 40,8% pay-out ratio”.
CONSOLIDATED RESULTS AS AT DECEMBER 31ST, 2010
The Net Revenues amount to Euro 99.9 million with a 113% increase compared with 31/12/2009. Such a significant growth was given by an excellent trend of the operation activities. The Group could consolidate its leadership in EPC segment relating to the supply of “turn-key” medium and large sized photovoltaic plants, completing 76 new plants, for a power of 77,2 MWp, that is more than double compared with the power that was installed in 2009 (27,2 MWp).
Notably, 46 photovoltaic parks were built “turn-key” on behalf of third parties (with supply of panels and inverters), for a capacity of 47,7 MWp while the remaining 30 plants were built for joint venture companies for a total capacity of 29.5 MWp in the context of Power Generation activity.
The gross operation margin (EBITDA), equal to Euro 14.6 million increased up to 100%. Such a positive variation of EBITDA is given by the growing volumes of installed power, as well as by the optimization of the company’s processes and the relevant economies of scale.
The operation result (EBIT) is Euro 13.8 million (Euro 7,0 million as at 31/12/2009), after deducting amortization and provisions for an amount of Euro 0.9 million. The operation profitability (R.O.I.) is absolutely growing and it is at 53.2% compared with 45,2% of the previous financial year.
The net profit amounts to Euro 9.0 million, with an increase of Euro 5.3 million compared with 2009. The capital profitability (R.O.E.) is also increasing and it is 42,8% compared with 39% of the previous financial year.
The Net Financial Position is Euro 5.7 million. Even if it is increasing compared with December 31st, 2009 PFN remains very limited in respect of the volumes of the installations made in 2010. The gearing ratio (PFN/Net Asset) decreased to 19,1% from 20,1%.
The investments made were for an amount of Euro 10.5 million, Euro 5.6 million of which were for shareholdings in JV, Euro 2,5 million for the purchase of authorizations relating to the construction of PV plants, Euro 1,0 million for purchasing real estate rights (diritti di superficie), Euro 0,6 million for purchasing lands and the remaining Euro 0.8 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 will submit to the Shareholders’ meeting approval the distribution of a gross dividend per unit equal to Euro 0,19 per share that corresponds to a pay-out amounting to 40.8%. Such a dividend shall be paid on May 12th, 2011 and the relevant coupon NO.2 will be taken off on May 9th, 2011.
INDUSTRIAL RESULTS AS AT DECEMBER 31st, 2010
As at December 31st, 2010 the Group built no. 204 photovoltaic plants for a total installed power of approximately 117,2 MWp, 49,3 MWp of which were performed for joint venture in the context of Power Generation activity.
As far as energy production from solar source is concerned, the 11 equally owned joint venture companies as at December 31st, 2010 owned a portfolio of50 photovoltaic plants for a total power of 49.3 MWp.
The production of the plants, some of which started running during such period, was 24 Million of kWh. In relation to the year 2011, the plants will guarantee a production exceeding 40 million of kWh and the production of the plants under construction will add to such a figure.
TERNIENERGIA S.P.A.’S RESULTS AS AT DECEMBER 31ST, 2010
The net revenues amount to Euro 126.6 million (Euro 55.7 million as at 31/12/2009, + 127.3%).
The gross operation margin (EBITDA) is Euro 20.9 million (Euro 10.1 million as at 31/12/2009, + 106.4%).
The operation result (EBIT) is Euro 20.4 million (Euro 9.8 million as at 31/12/2009, + 108%).
The net result is Euro 12.8 million (Euro 6.2 million as at 31/12/2009, + 106,8%).
As at December 31st, 2010 the own shares in the Company’s portfolio were NO. 281,101 ordinary shares, equal to 1,01% of the share capital, that were registered at an average value per unit equal to 1,718 Euro.
SIGNIFICANT FACTS OCCURRED AFTER THE END OF THE FINANCIAL YEAR
February 8th, 2011 – The Group executed the purchase of Società Agricola Fotosolara Oristano S.r.l.. Such a purchase is aimed at developing a new industrial sized PV plant on greenhouses in Sardinia, for a total installed power of approximately 1 MWp, whose building site is ready to be opened. The total cost of such a transaction was Euro 0.25 Million that were wholly financed by cash.
February 28th, 2011 – The Board of Directors approved a new industrial plan for the there year period 2011-2013, that was presented to the financial community on Monday 28th, February at Four Seasons Hotel in Milan. The new economic, financial and production objectives (i.e., 320 MWp for the next three year period) increase in an exponential way the objectives that were announced in the previous 2010-2012 industrial plan, published in November 2009 and that has been already overcome during 2010.
March 7th, 2011 – The purchase of T.E.C.I. Costruzioni e Ingegneria S.r.l. a company with registered office in Gioia del Colle (BA). Such a purchase is aimed at building 6 PV plants of industrial size in Puglia, for total installed power amounting to 4.92 MWp, that have been already authorized and that whose building site is ready to be opened. The agreed price for the purchase of 100% of such a company is Euro 1.18 Million, totally financed by cash.
FORESEEABLE MANAGEMENT EVOLUTION
Druign the year 2011 the Group shall continue to consolidate the EPC activity and to strengthen the energy production from solar source both through joint venture companies and totally owned plants (Full Equity). In addition the Company wishes to develop significantly also those businesses that are complementary to its main activity, notably the operation and maintenance of the PV plants. Such an activity is carried out for the benefit of the totally owned plants as well as for plants built on behalf of third parties.
Further to the issuance of Legislative Decree March 3rd, 2011, enacting directive 2009/28/CE of UE Parliament and Board dated April 23rd, 2009 relating to the promotion of the use of energy from renewable sources, the Company believes that the reduction of incentives shall be in line with the decrease of costs to be borne for the construction of new plants.
In consideration of such an uncertain legislative scenario and in case of reduction of the incentives, the Company shall develop its activities in line with the economic and financial objectives of the industrial plan, also boosting of Power Generation activity.
OTHER BOARD OF DIRECTORS’ RESOLUTIONS
Pursuant to the Company’s By-laws, the Board of Directors resolved to move the Company’s registered office from Terni Municipality to Narni (TR) Municipality, in Nera Montoro, inside the production premises of Nuova Terni Industrie Chimiche. The Board of Directors approved the Report on Corporate Governance and proprietary assets, that was prepared pursuant to article 123 bis of TUF. In addition, the Board has resolved to call the ordinary Shareholders’ Meeting for the approval of the financial statement as at 31.12.2010, the distribution of dividends and the change of the remuneration to the Company’s auditors Pricewaterhouse Coopers S.p.A., instructing the Chairman Prof. Stefano Neri to carry out all the formalities relating to such a meeting, and providing him with the power to determine the relevant timing, place and date. The documents required according to the applicable laws and regulations shall be filed pursuant to the applicable laws and regulations.
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.
The Company will present the results obtained as at 31 December 2010, on Wednesday 23rd March 2011 at 12:05 at Borsa Italiana S.p.A. during the STAR Conference. The relevant material shall be available at www.ternienergia.com, under Investor Relations section.
TerniEnergia founded in September 2005, is part of T.E.R.N.I Research Group, operates in the renewable energy sector and in the photovoltaic field. TerniEnergia operates as system integrator with a “turnkey” offer of P.V. industrial – sized plants, both for the account of third parties and on its own mainly through Joint Venture companies with EDF EN Italia S.p.A. and other primary domestic operators. The company intends to strengthen the business of selling the energy produced from solar energy. TerniEnergia is listed on the STAR segment of Borsa Italiana S.p.A..