GENEVA, SWITZERLAND--(Marketwire - March 29, 2012) - Etrion Corporation ("Etrion" or the "Company") (TSX:ETX.TO - News)(OMX:ETX.ST - News), an independent solar power producer, today released its annual consolidated financial statements, related management's discussion and analysis ("MD&A") and annual information form ("AIF") for the year ended December 31, 2011.
-- Production: Produced 88.3 million (2010: 20.9 million) kilowatt-hours of
solar electricity from seven solar power projects during the year.
-- Revenue: Generated solar electricity revenues of US$51.9 million (2010:
US$11.6 million) during the year.
-- EBITDA: Recognized adjusted earnings before interest, tax, depreciation
and amortization ("EBITDA") for the renewable energy segment of US$47.6
million (2010: US$8.4 million) during the year.
-- Construction: Completed construction of the 10 megawatt ("MW") Helios
ITA-3 and 2.6 MW Nettuno solar power projects, both connected to the
electricity grid in August 2011.
-- Corporate Financing: Issued, in April 2011, US$77.4 million (EUR60
million) of corporate bonds in the Norwegian bond market at 9% annual
interest with a 4-year maturity.
-- Debt Repayment: Repaid, in May 2011, the outstanding principal and
interest associated with the US$77.4 million (EUR60 million) credit
facility provided by a subsidiary of Lundin Petroleum AB.
Repaid, in November 2011, the US$36.1 million (EUR28 million) bridge
loan from investment companies associated with the Lundin family.
-- Project Financing: Completed, in the fourth quarter of 2011, the
drawdown of US$51 million (EUR39.5 million) from the non-recourse loan
facility with Natixis, WestLB and Mediocreval in connection with the
Helios ITA-3 and Nettuno solar power projects.
-- Working Capital: Closed 2011 with a cash balance of US$39.7 million
(2010: US$45 million) and positive working capital of US$20.1 million
(2010: negative US$73.3 million).
Marco A. Northland, the Company's Chief Executive Officer, commented, "Etrion made significant progress in 2011 by completing almost 13 MW of additional solar capacity. Etrion now has a fully-funded solar portfolio of 60 MW with substantial revenues and cash flows from operations. Our solar parks produced approximately 10% above expectations in 2011, and we look forward to expanding our installed capacity in 2012."
Mr. Northland continued, "2012 will be an exciting year as we pursue our plans to diversify into new markets, particularly in the Americas. We are focused on increasing free cash flow to prepare for potential future dividend distributions. I believe Etrion is well positioned to expand, diversify and achieve sustainable growth based on market-driven energy contracts with industrial clients."
For the year ended December 31, 2011, the Company reported a net loss of US$26.3 million (loss per share of US$0.14) compared to a net loss of US$18.1 million (loss per share of US$0.11) for the comparable period in 2010.
The net results for the year ended December 31, 2011, were adversely affected by non-recurring, non-cash items of US$14 million, which included impairment losses totaling US$9.7 million related to the Group's legacy oil and gas investments and development pipeline of solar power projects in Italy, an equity-based financing fee of US$3.2 million and non-cash compensation of US$1.1 million. Before these non-recurring, non-cash items, the Company's net loss for the year ended December 31, 2011, would have been US$12.3 million (loss per share of US$0.07).
Effective April 1, 2012, the Company has appointed Cheryl Eversden as interim Chief Financial Officer. Mrs. Eversden replaces Garrett Soden, who is resigning to pursue other opportunities with the Lundin family. Mr. Soden has been CFO of Etrion and its predecessor company since December 2006 and will remain available to ensure a smooth transition of responsibilities.
Mrs. Eversden has been Etrion's Director of Finance and Accounting since January 2011 and was previously Group Financial Controller for ShaMaran Petroleum Corp. and Cadogan Petroleum plc. She is a Canadian chartered accountant and previously worked within the Assurance and Advisory Group at Deloitte in Calgary and London.
Etrion's CEO, Marco A. Northland, commented, "Garrett has created a culture of strong controls, continual process improvements and high standards for the finance and accounting team. I thank him for his leadership and contribution during a period of tremendous growth at Etrion. I am pleased to appoint Cheryl as interim CFO. She will play an instrumental role in the company's next growth phase."
Etrion Corporation is an independent power producer that owns and operates renewable assets. Etrion currently owns approximately 60 MW of operational, ground-based solar photovoltaic power plants in Italy. The Company is listed on the Toronto Stock Exchange and the NASDAQ OMX Stockholm exchange (ticker symbol "ETX"). Etrion's largest shareholder is the Lundin family, which owns approximately 25% of the Company's shares through various trusts.
Note: The capacity of power plants in this release is described in approximate megawatts on a direct current ("DC") basis, also referred to as megawatt-peak ("MWp").
This press release contains certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to solar electricity revenue which is subject to confirmation of both the applicable feed-in-tariff ("FiT") to which the Company is entitled by the state-owned company Gestore Servizi Energetici and the applicable spot market price by the local utilities for electricity sales to the national grid and statements relating to the Company's growth plans) constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company as well as certain assumptions including, without limitation, confirmation of the applicable FiT and spot market price for electricity sales. Forward-looking information is subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the lack of confirmation or reduction of the applicable FiT and the spot market price for electricity sales by the designated entities and the risk that the Company may not be able to identify and/or acquire additional renewable energy projects on economic terms.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.