Edisun Power Europe AG
Edisun Power Europe Ltd.: Half-year profit almost doubled, outstanding annual result expected
Edisun Power Europe AG / Key word(s): Half Year Results Ad-hoc announcement pursuant to Art. 53 LR Half-year profit almost doubled, outstanding annual result expected – Revenue growth of 33% to CHF 8.55 million – Net profit increase of 86% to CHF 2.53 million – Rise in 2021 profit forecast from CHF 3.7 million to CHF 4.6 million – Issue of a new bond as of December 1, 2021 The results of the Edisun Power Group were significantly increased at all levels in the first half of the year. The expected strong performance is largely attributable to the contribution of the first Portuguese large-scale plant in Mogadouro that was connected to the grid at the end of 2020. Furthermore, electricity prices were high, especially in comparison with the low prices in the spring of the previous year. Last but not least, costs remained at a low level thanks to the lean corporate structure. Following record low electricity market prices in Europe in the previous year impaired by the lockdown, market prices rose sharply from April with relatively high volatility. Edisun Power has hedged the income from the Portuguese plant over the first five production years at a fixed price so that the market price for this plant does not play any role. On the other hand, as the state guaranteed income in Spain and Italy is partly dependent on the market price, the recovery of electricity prices had a correspondingly positive impact for these plants. However, the volume effect was negligible. The somewhat worse production in kWh in Spain, Germany and Switzerland owing to the weather was offset by the improved production in France and Italy. In particular a repowering of the 1 MW Ravenna plant in Italy had a positive effect on production as expected. Significant increase in profitability The French government decided at the end of 2020 that existing feed-in tariffs for some older photovoltaic systems were in future to be reduced. Initial draft bills were presented mid-2021. Based on a detailed analysis of the documents, Edisun Power currently expects the systems in France only to be marginally affected by the reductions if at all so that from the current perspective no impairment was necessary in the middle of the year. Depreciation and amortization therefore rose by 36% due to acquisition and currency effects to CHF 3.02 million (H1 2020: CHF 2.21 million), resulting in a 51% higher operating profit (EBIT) of CHF 3.52 million (H1 2020: CHF 2.33 million). Financial expenses fell further thanks to income from interest-bearing project prepayments despite the growth-related higher level of debt to CHF 0.55 million in net terms (H1 2020: CHF 0.79 million). Finally, tax expenditure rose due to the sharp profit growth from CHF 0.18 million to CHF 0.43 million. Net profit altogether almost doubled to CHF 2.53 million (H1 2020: CHF 1.36 million). Strong equity base remains unchanged Debt increased by CHF 8.0 million to CHF 118.7 million due to currency effects and the further acquisition of loans, both for the new Portuguese projects and for an older Spanish plant. Total equity increased by CHF 3.1 million compared with December 31, 2020 to CHF 84.8 million. Alongside net profit, a positive currency effect of CHF 1.7 million contributed to this. The equity ratio remained at a high level of around 40%. Implementation of the Portuguese projects Issue of a new bond Successor for outgoing CFO Reto Simmen Outlook for further growth The semi-annual report 2021 of the Edisun Power Group is available on the website at: For more information Edisun Power Group
End of ad hoc announcement |
Language: | English |
Company: | Edisun Power Europe AG |
Universitätstrasse 51 | |
8006 Zürich | |
Switzerland | |
Phone: | +41 44 266 61 20 |
Fax: | +41 44 266 61 22 |
E-mail: | info@edisunpower.com |
Internet: | www.edisunpower.com |
ISIN: | CH0024736404 |
Valor: | 2473640 |
Listed: | SIX Swiss Exchange |
EQS News ID: | 1229285 |
End of Announcement | EQS Group News Service |