Earnings Release • Nov 4, 2011
Earnings Release
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Brussels - 4 November 2011 – 18.00 CET -
Regulated Information
4Energy Invest, the Belgian renewable energy company focused on valorising biomass into energy, announces today its Trading Update for the third quarter of 2011.
| Non audited consolidated income statement (in thousands of Euro) |
YTD 30/09/2011 |
Q3 2011 | YTD 30/09/2010 |
Q3 2010 |
|---|---|---|---|---|
| Sales | 7,874 | 2,610 | 6,898 | 2,416 |
| Other operating income | 46 | 19 | 979 | 342 |
| Revenues | 7,919 | 2,629 | 7,877 | 2,758 |
| Cost of sales | -4,334 | -1,276 | -3,666 | -1,106 |
| Personnel costs | -651 | -214 | -586 | -189 |
| Other operating expenses | -1,091 | -300 | -1,428 | -676 |
| Operating expenses | -6,076 | -1,790 | -5,680 | -1,971 |
| Operating cash flow (EBITDA) | 1,843 | 840 | 2,196 | 787 |
| Operating cash flow (EBITDA) - excluding fair value warrants & exceptional other operating income |
1,907 | 861 | 1,815 | 800 |
Sales over third quarter 2011 were 8% higher compared to sales over third quarter 2010 and result from higher electricity output from the Amel cogeneration facilities (the average realized electricity sales price over Quarter 3 2011 was in line with similar period last year). The wood torrefaction unit in Amel did not contribute to sales over quarter 3 2011.
Cost of sales over third quarter 2011 was 15% higher compared to cost of sales over third quarter 2010 and result from similar increases in all major cost items.
When taking into account non-recurrent other operating expenses for 300,000 Euro over third quarter 2010, both personnel costs and other operating expenses were marginally lower in quarter 3 2011 than over third quarter 2010.
The normalized EBITDA improved marginally over quarter 3 2011 compared to third quarter 2010.
PRESS RELEASE Brussels - 4 November 2011 – 18.00 CET - Regulated Information
4Energy Invest has been operating the Amel III installation at 40% of its design capacity and has produced sufficient quantity of bio-coal as to enable a European utility to perform a large scale co-firing test. 4Energy Invest identified during the test phase that additional investments are needed to operate the installation at a higher capacity factor but decided to seek first for a strategic partner for Bio-Coal before the additional investments can be implemented. KBC Securities has been retained by 4Energy Invest to act as its exclusive financial advisor in this respect and discussions have been initiated with potential strategic partners.
As additional investments are needed to operate the installation at higher capacity level, 4Energy Invest has decided to pursue the up-scaling of Amel III and the roll-out of Bio-Coal with a strategic partner. The uncertainty on concluding such strategic partnership significantly affects the relevance of the financial statements as already indicated by the auditor in its report on the interim consolidated financial statements of 30/06/2011. However, if the strategic partnership could not be structured on the short term, 4Energy Invest could use the Amel III installation to produce (temporarily) white wood pellets which should have a positive EBITDA contribution at Renogen level. This could be implemented short term and without significant investments.
The EPC contractor (an affiliate of Metso Power) experienced during the test program that the fuel feed system from the buffer silo into the boiler was not operating correctly and decided to implement a new system that was installed second half of October. The EPC contractor restarted the contractually agreed test program early November 2011 in order to reach commercial operation as soon as possible.
The profitability of the cogeneration project in Ham is under severe pressure given (1) the oversupply of green certificates in the Flemish market with resulting significant reduction in average green certificate trading price and (2) the decision by the Flemish Government to reduce the penalties for not respecting the quota going forward. Under those changed market circumstances, the project will be unable to respect the debt covenants as agreed with ING and KBC Bank going forward.
4Energy Invest reconfirms that it has to mobilize additional financial resources at either the holding company or Renogen level in order to secure the financial resources that are needed to consolidate the existing business and respect the debt redemption obligations going forward.
4Energy Invest NV/SA
Paepsem Business Park - Boulevard Paepsemlaan 20 - 1070 Brussels – BELGIUM
4Energy Invest is a Belgian based renewable energy company that aims at creating and managing a portfolio of small to midsized locally embedded projects that valorize biomass, directly or indirectly, into energy. 4Energy Invest identifies potential biomass projects, performs a feasibility study and eventually takes responsibility for developing, financing, constructing and operating the project, in close cooperation with carefully selected suppliers and partners.
4Energy Invest (through its fully owned subsidiary Renogen) has two cogeneration projects, located in Amel (Wallonia, Belgium), that are fully operational.
4Energy Invest (through its fully owned subsidiary Renogen) has constructed in Amel (Wallonia, Belgium) a large scale torrefaction unit to produce BioCoal or torrefied wood pellets with minimum CO2 footprint. 4Energy Invest has been operating the installation at 40% of its design capacity but decided to look first for a strategic partner before implementing the investments that are needed to operate the installation at a higher capacity factor.
4Energy Invest (through its fully owned subsidiary 4HamCogen) is about to take into commercial operation in Ham (Flanders, Belgium) a 9.5 MW biomass fired cogeneration project in Ham
4Energy Invest continues the preparation of the roll out of the torrefaction technology with permit files that have been obtained in Ham (Flanders, Belgium) and in Reisbach (Germany). Permit files are also under preparation in countries where more abundant biomass resources are available (than in Western Europe) and where integrated projects can be pursued.
4Energy Invest is listed on Euronext Brussels under symbol ENIN.
For more information, please contact: Nico Terry, Chief Financial Officer Tel: +32 (0)2 526 90 13 [email protected]
Yves Crits, Chief Executive Officer Tel: +32 (0)2 526 90 11 [email protected]
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