•   Revenues of Euro 67 million, +2.4% compared to December 31, 2012

•   EBITDA of Euro 12.4 million, +16% compared to December, 31 2012; Ebitda Margin 18.5% (16.3% as at December, 31 2012)

•   EBIT of Euro 5 million (Euro 5.8 million as at December 31, 2012)

•   Net income of Euro 6.85 million, unchanged compared to December 31, 2012

•   NFP of Euro 135.2 million, Euro 18.2 million of which in short term (Euro 116.3 million as at 30/09/2013, Euro 31.5 million of which in short term)

•   Net equity amounted to Euro 54.2 million (Euro 48.8 million as at 31/12/2012)

 

The Board od Directors of TerniEnergia, a company active in the renewable energy fields, energy efficiency and waste management, listed on Star Segment of Borsa Italiana, approved today the draft financial statements and the consolidated financial statements as at December 31, 2013.

Stefano Neri, President and CEO of TerniEnergia commented as follows:

“During 2013 TerniEnergia achieved fully satisfactory results, demonstrated high reliability and ability to create value even in a period of strong international crisis, in particular in the “core” field of photovoltaic sector. TerniEnergia can be considered a case study, in terms of reliability and stability of the results, thanks to the now proven ability of the Company to respond with extreme speed to the sudden reference frame changes and to market drivers. This dynamic capability can be a strong element of competitive ability in perspective, in a market increasingly characterized by selection processes and consolidation of the major players in the world.

In this sense, the group can already count on the progressive growth of the global activity, thanks to a process of internationalization accomplished with extreme rapidity and readiness, which generated approximately 30% of the total revenues from the activities carried out abroad or for foreign markets. Similarly, the increased activity in the energy efficiency field and environmental sector has also contributed significantly to this year’s results”.

 

CONSOLIDATED RESULTS AS AT DECEMBER 31ST, 2013

Revenues amounted to Euro 67 million, increased of 2.4% compared to December 31, 2012 (Euro 65.4 million). The increase is mainly attributable to the power generation activity, energy efficiency, consolidation of investments and the contribution of the results of environmental activities.

EBITDA amounted to Euro 12.4 million, a significant increase (+16%) compared to December 31, 2012 (Euro 10.6 million). The EBITDA margin was 18.5%, increased compared to 2012 financial statement (16.32%).
Net operating income (EBIT) amounted to Euro 5 million (Euro 5.8 million as at December 31, 2012), after depreciation, amortization and impairment losses of Euro 7.4 million (Euro 4.8 million in 2012).
Net profit amounted to Euro 6.85 million, remains unchanged compared to December 31, 2012 (Euro 6.9 million), and includes the share of profit from the activities of the JV of Euro 2.7 million.

The Net Financial Position amounted to Euro 135.2 million (Euro 62.3 million as at 31/12/2012). Non-current net financial position amounted to Euro 117.0 million, while the net financial position in short term amounted to Euro 18.2 million. The net financial position as at September 30, 2013 was Euro 116.3 million.
The Net Equity amounted to Euro 54.2 million. The Fixed Assets amounted to Euro 182.7 million, Euro160.9 million of which related to tangible fixed assets. The gearing ratio NFP/short equity, equal to 0.34x improves appreciably, remaining well below the unit in a complete safety area.

The Board of Directors approved the proposal to the Shareholders’ Meeting about the distribution of a gross dividend per share of Euro 0.06 per share, corresponding to a payout ratio of 33% on consolidated net profit. The dividend will be paid on May 22, 2014, and the relevant coupon No. 5 shall be separated on May 19, 2014.

 

INDUSTRIAL RESULTS AS AT DECEMBER 31 2013

The total number of photovoltaic plants built by TerniEnergia from the beginning of its activity until December 31, 2013 amounted to 270, with an aggregate capacity of approximately 275.2 MWp (34.3 MWp of which held 100% by the Company and 8.1 MWp held in equally owned joint ventures for the Power Generation activity). Moreover, TerniEnergia connected to the grid biomass plants for 1.5 MW and 2 MWt. The total energy production of the plant in Full Ownership and joint ventures for the power generation activity amounted to about 60 million kWh. The recovery plant of end of life tires collected approximately 12,000 tons of scrap tires. The biodigestion plant collected approximately 28,000 tons of bio-waste and produced about 5 million KWh of energy fed into the grid. As far as its energy efficiency sector is concerned have been installed n. 7.200 area lights related to 3 interventions in ESCO.

 

TERNIENERGIA S.P.A.’ RESULTS AS AT DICEMBER 31, 2013

Net revenues amounted to Euro 35.6 million (Euro 38.9 million as at 31/12/2012). The gross operating margin (EBITDA) amounted to Euro 2.8 million (Euro 3.6 million as at 31/12/2012). The net result amounted to Euro 1.9 million (Euro 1.2 million as at 31/12/2012).

 

 

SIGNIFICANT EVENTS OCCURRED AFTER THE END OF FINANCIAL YEAR

The Board of Directors approved the issuance of a bond.

January 27, 2014 – The Board of Directors of TerniEnergia approved the issuance of a bond for a maximum nominal value of Euro 25 million.

Admitted to trading on the bond market ExtraMOT PRO “TerniEnergia 2019”

February 5, 2014 – On February 4, 2014 the bond “ TerniEnergia 2019 ” (ISIN : IT0004991573 ) was admitted to trading on ExtraMOT PRO, managed by the Italian Stock Exchange whose issuance was approved by the Board of Directors on January 27, 2014. The issuance of Euro 25 million, with a five-year fixed gross annual rate equal to 6.875 % with an annual postponed coupon, was signed and fully placed by the Sole Lead Manager JCI Capital Limited Investment & Asset Management at institutional investors.

Since February 6, 2014 bonds started to be traded on the market ExtraMOT PRO, the professional segment of the market ExtraMOT managed by the Italian Stock Exchange and dedicated to the listing of bonds, finance bills, equity instruments and project bonds.

 

BUSINESS OUTLOOK

The current market situation is characterized by an overall restart of investment in the photovoltaic industry and the environment sector, but there are still critical issues arising from quota restrictions on access to capital, from the growth of the plants’size and the consequent need for a careful and perspective view of the financial management of projects. TerniEnergia is operating with a business model now revised from which derives stability of cash flow and growth opportunities resulting from replicability, differentiation of country and counterparty risk in the B2B, diversifying the sources of access to capital (bond and investment fund).
TerniEnergia confirms, therefore, for the future, a strategy that combines the size of the business, growth and development policy of relations with capital markets and debt. As a result, the Company expects the following development lines:

  • International development (in the period 2014/2015 is planned the construction of a project in portfolio in South Africa for a total of about Euro 140 million);
  • Specialization on certain sectors bringing integrated skills to solve the overall energy problem of companies;
  •  Focus on business lines with major development, consolidating investments without recourse to new lines of business with lower potential return and growth, where the recent development (EPC, O & M) was based. Concentration on the activity of power generation with the full technological independence and diversification of sources and technologies themselves, to enhance the opportunities for the short term and the coverage requirements of the demand curve

In particular, TerniEnergia intends to continue its path of growth by focusing on:

  • Activities aimed at creating industrial sized plants for grid connection, with diversification of country risk, aiming at the development of the countries with strong growth demand (e.g. South Africa and emerging countries) and replacement demand (Europe);
  •  Direct investments in generation and energy efficiency for verticals sectors with private counterparts and consequent diversification of counterparty risk ;
  • Environmental intervention and of use of marginal resources
  •  Expansion in the field of energy efficiency and related services.

TerniEnergia intends to have a balanced portfolio for each Country. In the next months, in particular, the company according to the process of internationalization of the EPC in the PV business, will be involved the construction of industrial-sized photovoltaic plants of a total power of 148.5 MWp in South Africa and is conducting intensive scouting activity for promoting development projects in the most attractive countries for the installation of industrial sized plants.

TerniEnergia also intends to continue its policy of enhancement of photovoltaic assets, with a consequent reduction of the NFP, taking advantage of the best market opportunities.

The Company has provided significant investments dedicated to activities of ESCO with the formula of the Third Party Financing (TPF), which can be realized also thanks to the completion of the integration of the subsidiary Lucos Alternative Energies within the Group TerniEnergia. The Company will also continue the process of strengthening the scope of the environmental asset, completing a new facility for the treatment and recovery of “secondary raw material” of life tires in Northern Italy and exploiting a new plant in South Italy for energy recovery through anaerobic biodigestion and composting. Finally, the new plant for the treatment of industrial waste fluids in Nera Montoro (TR), now in an advanced authorization phase, will be completed and will intercept a substantial demand in a market segment with high technological content and high growth prospects.

On the financial side, TerniEnergia intends to consolidate the excellent reputation with investors through its own presence on the Stock Exchange in order to candidate itself to be an investment platform for institutional investors, creating conditions, through the stability of cash flows, using the debt in a efficient manner with respect to changes in demand of the market.

 

FURTHER RESOLUTIONS OF THE BOARD OF DIRECTORS

The Board of Directors has reviewed and approved the Report on corporate governance and ownership structure for the year 2013, and approved the Report on the remuneration of Directors and key management with strategic responsibilities pursuant to Article. 123-ter of Legislative Decree 58/98, which will be subject to approval by the Shareholder’ Meeting.

The Board of Directors finally called the ordinary Shareholder’ Meeting on April 23, 2014, in first call, and on April 24, 2014, in second call, to resolve on the approval of the financial statements as at 31/12/2013.

The documentation related to items on the agenda of the Shareholders’ Meeting shall be made available to the public at the time and in the manner provided by law.

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.