Significant increase in half-year revenue to € 4.2 million
Year on year
Q1 sales (Jul.-Sep.)
Q2 sales (Oct.-Dec)
Half year turnover
* Unaudited figures
La Française de l'Énergie (Paris:LFDE) (Euronext: LFDE - ISIN: FR0013030152) recorded a 43% increase in turnover in the 2nd quarter of FY19/20 to € 2.4 million. This good momentum, driven mainly by an increase of green electricity production at its French and Belgian sites, allows the company to post half-yearly revenue up by 28% to €4.2M.
Strong growth in green electricity production activity in the first half of FY19/20
Over this period, the production of green electricity from abandoned mine gas recorded a further improvement reaching a turnover of €3.1M (+ 45% vs H1 2018/2019). This very good performance is supported by the growing contribution from the Anderlues site in Belgium (€448K) that started its production in April 2019 and by the increase in volumes at the Avion site (+ 108%). The Group's 8 cogeneration units are now operating optimally, thus offering good visibility in terms of revenue generation over the coming quarters. Finally, the regular production of the Anderlues site over this half-year demonstrates the Group's ability to implement its operational development in a quick, efficient and reliable manner.
Strong recovery of the Avion production site, offsetting the drop in gas prices over the period
Over the six-month period, the turnover of the gas activity stabilizes at € 1.1M. However, this performance does not reflect the strong activity of the Avion site which made it possible to offset the significant impact of the drop of the average selling price of gas from €24 / MWh in the first half of FY18/19 to €13.4 / MWh in this half year. Indeed, this production site, that slowed down this summer by work on the transportation and distribution networks, recovered from the 2nd quarter onwards, showing a production volume increase over this semester of almost 70% vs. first half of FY18/19. This increase in volumes made it possible to almost entirely offset the unfavourable price effect of the period. In the second half of FY19/20, the Group expects further growth in its gas production, driven in particular by the simultaneous operation of the three electric motors acquired in 2019.
Positive development prospects and strengthening of the Group's financing capacity
The continuous increase in turnover comes with a significant strengthening of the Group's investment capabilities following the signing of two bank loans, from Bpifrance financement for € 1.3M and from a Dutch bank dedicated to green energy, Triodos, for € 4.2 M, at interest rates below 2% per year.
With this significant revenue growth, La Française de l'Énergie continues to implement its development plan in Belgium and in Hauts-de-France.
These solid results and prospects also allow the Group to look forward to the development of its Lorraine sites with the objective to produce the 2.14 billion m3 of gas already certified at this stage (P2 reserves).
January 21, 2020: Update on Lorraine development plan
March 25, 2020: Half Year Results
Reuters code: LFDE.PA
Bloomberg code: LFDE.FP
About La Française de l’Énergie
La Française de l'Energie is a Lorraine SME, leader in industrial ecology, specializing in producing the gas present directly in the coal and in the former coal mines of France and Belgium. Thanks to its recognised know-how in geology and engineering combined to its local positioning, La Française de l'Energie supplies gas, green electricity and heat to regional players, replacing imported energy by energy local and cleaner energy. La Française de l'Energie is on a significant growth path and aims to become a major player in the energy sector in Europe. The company is labelled as a young innovative company by Bpifrance.
More information available on www.francaisedelenergie.fr
This press release contains certain forward - looking statements and estimates concerning LFDE’s financial condition, operating results, strategy, projects and future performance and the markets in which it operates. Such forward-looking statements and estimates may be identified by words such as "anticipate," "believe," "can," "could," "estimate," "expect," "intend," "is designed to," "may," "might," "plan," "potential," "predict," "objective," "should," or the negative of these and similar expressions. They incorporate all topics that are not historical facts. Forward looking statements, forecasts and estimates are based on management’s current assumptions and assessment of risks, uncertainties and other factors, known and unknown, which were deemed to be reasonable at the time they were made but which may turn out to be incorrect. Events and outcomes are difficult to predict and depend on factors beyond the company’s control. Consequently, the actual results, financial condition, performances and/or achievements of LFDE or of the company may turn out to differ materially from the future results, performances or achievements expressed or implied by these statements, forecasts and estimates. Owing to these uncertainties, no representation is made as to the correctness or fairness of these forward-looking statements, forecasts and estimates. Furthermore, forward-looking statements, forecasts and estimates speak only as of the date on which they are made, and LFDE undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise, except as required by law.