Communiqués
With a net profit of 3.4 million euros in 2015, FUTUREN reaches its target to be profitable and implements a supported growth dynamic (15/03/2016 18:00)
Commenting on the 2015 annual results, Fady Khallouf, CEO of FUTUREN, said: “After several years of major transformation, FUTUREN is today an efficient and profitable industrial group of the renewable energy sector. We reach a net profit for the first time in the Group's history. Our strategic vision adopted end 2010 is more than ever relevant and strengthens our future outlook. Our core business, electricity production from renewable energy, is characterized by its long term recurrence. This activity contributes to 86% of our revenue, thus providing stability as well as predictability. Our business model and the results registered today are the foundation of our forthcoming growth. Implementing growth at almost constant structure costs, our profitability will increase with each commissioning of a new wind farm. After the commissioning of a 21 MW wind farm in November 2015, FUTUREN will implement two other wind farms in 2016 representing 31 MW. The construction of other wind farms will begin at the end of 2016. On the basis of this particularly sustained momentum, we maintain our target to double our installed capacity in France and Morocco in the short term. We are looking to the future with confidence and determination. Our profitable growth will reinforce our performance.” 1. Key highlights of the year 2015 Change in corporate name Further development in France The Haute Borne wind farm, located on the territory of the towns of Languevoisin-Quiquery, Breuil and Billancourt, in the Somme department, comprises seven wind turbines with a unit capacity of 3 MW, for a total installed capacity of 21 MW. The wind farm has been commissioned in November 2015 as scheduled and is producing green electricity since then. For its Chemin Perré wind farm, located on the Nogentais community of communes, on the territory of the towns of Montpothier and Villenauxe-la-Grande, in the Aube department, FUTUREN ordered, in July 2015, nine wind turbines with a unit capacity of 2 MW, for a total installed capacity of 18 MW. In September 2015, FUTUREN also entered into a long-term bank financing agreement for this project. As scheduled, construction works started in September 2015. The commissioning is planned for the second half of 2016. In November 2015, the Group ordered four wind turbines with a unit capacity of 3.3 MW, i.e. a total capacity of 13.2 MW, for Les Monts project, located on the territory of the towns of Sainte-Maure and Saint-Benoît-sur-Seine, in the Aube department. The signature of a second turbine supply agreement in less than five months demonstrated the dynamic management of the Group's project portfolio in France End of control over Breeze Two Energy Appointment of Jérôme Louvet as Director Change in share capital 2. 2015 annual results The Board of Directors, during its meeting of March 15, 2016, approved the 2015 consolidated financial statements. The following financial statements are audited and certified without any reservation by the Statutory Auditors. In 2015, the Group reorganized its activities: the former activities "Development, construction, sale", "Operation" and "Corporate" are understood in their entirety. The two wind activities presented in the following consolidated financial statements are as follows:
Finally, the Group now places the electricity sale at the center of its business model and wants to operate its wind farms over their life span. Thus, since July 1, 2015, the Group no longer considers the sale of wind farms and projects as a core business. The two main consequences are that as from July 1, 2015, sales of wind farms and projects are no longer recognized as revenue and the depreciation policy has been reviewed. CONSOLIDATED INCOME STATEMENT
FUTUREN's consolidated revenue reached 59.2 million euros in 2015, driven by a growth of + 11.2% in sales of electricity over the year.
Thanks to globally favorable wind conditions and to the commissioning of a 21 MW wind farm in November 2015, the Sales of electricity activity recorded a revenue of 51.1 million euros in 2015, up by + 11.2%. The Sales of electricity activity, which relies on 15- to 20-year electricity buy-back contracts, benefits from a recurring revenue and significant margins over the long term. This secure activity accounts for 86% of the consolidated revenue for 2015. In August 2014, the Group recognized as revenue, in the Development and management of wind farms activity, the sale of an operating wind farm in Germany. During the first half of 2015, the Group did not sell any wind farm or project and, since July 1, 2015, sales of wind farms and projects are no longer recognized as revenue. In this context, the Development and management of wind farms activity was down in 2015 compared to the previous year. The Group does no longer register any non-wind activity since the disposal of the solar park at the end of May 2014. Driven by globally favorable wind conditions, FUTUREN's main activity, the Sales of electricity, reported strong growth.
The EBITDA from the Sales of electricity activity amounted to 37.4 million euros in 2015, compared to 31.5 million euros in 2014, an increase of + 18.8%. The EBITDA/revenue margin for the Sales of electricity activity reached 73.2% in 2015, compared to 68.5% in 2014. Consolidated EBITDA grew by + 30.0% in 2015, reaching 34.5 million euros, compared to 26.5 million euros for fiscal year 2014. The consolidated EBITDA/consolidated revenue margin also rose sharply, from 44.0% in 2014 to 58.3% in 2015.
On the basis of relatively stable amortization, the Group's operating income is strongly improving, going from a loss of 2.4 million euros in 2014 to a profit of 13.3 million euros in 2015.
3. Current operating income before amortization and non-operational risk provisions. 4. Restated for the accounting of Breeze Two Energy as a discontinued activity, according to IFRS 5. The vast majority of amortization is related to wind farms held and controlled by the Group. In 2015, the Group reviewed its depreciation policy. The amortization charge is now calculated on a linear basis over 23 years. Impairment recorded in 2015 is again down sharply, going from 6.5 million euros in 2014 to 0.8 million euros in 2015, reaching a negligible level compared to the profit generated by the business. Reflecting the performance of the operating activities, the operating income/revenue margin reached 22.5% in 2015.
The Group's financial income represented a net cost of 8.7 million euros in 2015, compared to a net cost of 22.4 million euros in 2014.
The annual interest cost related to the convertible bond amounted to 4.0 million euros in 2015, compared to 14.7 million euros in 2014. Following the financial restructuring carried out at the end of 2014, the Company almost no longer records any additional interest cost due to the convertible nature of the bond. This additional cost amounted to 10.5 million euros in 2014. The net interest cost related to bank financing of operating wind farms decreased over the year, due to (i) the normal repayment of project financing, reducing over the years, the corresponding interest cost, (ii) the decrease in installed capacity following the sale of a 6 MW operating wind farm in August 2014 and (iii) the renegotiation of existing loans in Germany. The Group's financial income registered a very strong increase. The net cost decreased by 13.7 million euros between 2014 and 2015, mainly thanks to the success of the financial restructuring carried out at the end of 2014.
The net income of the consolidated Group for 2015 is a profit of 3.4 million euros, compared to a loss of 27.1 million euros for 2014. The momentum began in the first half of 2015 has been confirmed and amplified in the second half of 2015. In total, the 2015 fiscal year registered a profit, with a net income representing 5.7% of the revenue. After having conducted extensive restructuring, both at operating and financial levels, the Group today demonstrates the relevance of the strategy implemented and the profitability of its business model. DEBT AND CASH POSITION
The Group's net financial debt reached 142.9 million euros as at December 31, 2015, a decrease of 183.2 million euros over the year. The deconsolidation of Breeze Two Energy during the period led to the decrease in net debt of 183.3 million euros.
Operating wind farm financing (FUTUREN) It is reminded that FUTUREN's project financing debt is non-recourse or with limited recourse against the parent company. Each special purpose vehicle holding a wind farm directly takes out financing with the bank and ensures reimbursement through the cash flows generated by the operation of the wind farm. Other financial liabilities The balance of the “Other financial liabilities” item, i.e. 16.0 million euros as at December 31, 2015, mainly corresponds to financing brought by the investment vehicle THEOLIA Utilities Investment Company to its three wind farms. It is reminded that the wind farms held by THEOLIA Utilities Investment Company are consolidated using the global integration method and that their parent company, THEOLIA Utilities Investment Company, is consolidated using the equity method. Cash and cash equivalents
Main changes in cash during 2015 (excluding Breeze Two Energy)
In 2015, the Group carried on the construction of the Haute Borne and Chemin Perré wind farms in France and continued to invest in its repowering project in Morocco. In total, the Group spent 26.4 million euros in its investments in 2015, compared to 7.7 million euros in 2014. Borrowings and other liabilities recorded a net increase of 16.1 million euros in 2015, mainly due to drawdowns on project financing related to two wind farms under construction in France. Finally, in 2015, the Group paid out interest in the amount of 10.6 million euros, regarding project financing related to operating wind farms owned by FUTUREN and OCEANEs. Restated for the impact of the deconsolidation of Breeze Two Energy, the Group's cash position increased by 12.3 million euros in 2015. The dynamism of operations allowed to make significant investments (in the amount of 26.4 million euros) and to service debt, while strengthening the Group's cash position. Other financial assets 3. Events following December 31, 2015 Further development in France
4. Presentation meeting and financial documentation The 2015 Annual Financial Report is available on the Group's website www.futuren-group.com. The presentation will be available on the Group's website www.futuren-group.com, as from March 16, 2016 at 2:00 pm. About FUTUREN CONTACT
French Société anonyme (public limited company with Board of Directors) with a share capital of €18,605,511.70
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