Friday, 13 May 2016

Etrion Q1, 2016 results affected by lower solar power production and spot market electricity prices in Chile and Italy


 Etrion reports that spot market solar power prices for the PV plant Salvador in Chile continued to be low during the first quarter of 2016, due to network bottlenecks


Etrion Corporation (Geneva, Switzerland), an independent solar power producer, on May 12th, 2016 released its consolidated interim financial statements and related management’s discussion and analysis for the three months ended March 31st, 2016.
The company generated revenues of USD 9.9 million (2015: USD 10.4 million) in Q1, 2016 its 139 MW portfolio comprising 23 solar photovoltaic (PV) power plants in Italy, Chile and Japan.
Recognized earnings before interest, taxes, depreciation and amortization (EBITDA) was USD 4.4 million (2015: USD 5.5 million) during the three months ended March 31st, 2016.

Gross profit decreased by USD 2.2 million
In Q1, 2016, the company reported a gross profit of USD 0.2 million (2015: USD 2.4 million) and generated adjusted operating cash flow of USD 4.5 million (2015: USD 5.6 million). These results were primarily attributable to lower production and spot electricity prices in Chile and Italy.

Additional PV projects in Chile and Japan
Etrion advanced the backlog of three PV projects in Japan for a total capacity of 76 megawatts. Management expects to reach financial close for these backlog projects within the second half of 2016. The Company is advancing the development of additional projects in Japan for a combined capacity of 190 MW. Finally, the Company continues to maintain its shovel-ready 99 MW of PV projects in Chile which are targeted to be built once Power Purchase Agreements (PPAs) are secured.
The Company is progressing on the construction of the 25 MW Shizukuishi PV project in northern Japan. The project is on budget and on schedule, with estimated connection to the electricity grid by September 2016, Etrion notes.

65.1 million kWh of solar power produced in Q1, 2016
Etrion produced approximately 65.1 million kilowatt-hours (kWh) of solar power in Q1, 2016 (2015: 64.4 million kWh), from the Company’s 139 MW portfolio comprising 23 solar power plants (2015: 130 MW comprising 18 solar plants) in Italy, Chile and Japan.
When broken down by country, the Company produced 16.4 million kWh in Italy (2015: 17.0 million kWh), 46.0 million kWh in Chile (2015: 47.5 million kWh) and 2.8 million kWh in Japan (2015: nil), representing an overall production increase of 1% quarter-over-quarter.

Spot market electricity prices for Project Salvador continued to be low
“I am very excited about 2016; Japan continues to be a terrific market for Etrion. Our target is to exit 2016 with over 100 MW of projects connected or under construction and a larger pipeline for realization in subsequent years,” said Marco A. Northland, the Company’s Chief Executive Officer.
“In Chile, the team has done a great job by securing a PPA for 70 gigawatt-hours for Project Salvador, starting in January 2016. The team continues to work around the clock to secure additional PPAs for the remaining capacity of Project Salvador and our pipeline as well. Spot market electricity prices for project Salvador continued to be low during the first quarter of 2016, due to network bottlenecks and are likely to remain low for the rest of 2016 and a portion of 2017 until network expansion is completed.” 
source: http://www.solarserver.com

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