|FUTUREN records a net profit in the first half of 2018 and continues the implementation of its numerous projects (14/09/2018 07:00)|
The 2018 half-year financial report is available on the Group's website www.futuren-group.com.
1. Key highlights of the first half of 2018
In the first half of 2018, FUTUREN pursued its development policy that aims at commissioning new wind farms for own account in order to strengthen its core business as electricity producer.
In this way, FUTUREN commissioned in May 2018 the Courant-Nachamps wind farm, located on the territory of the eponymous municipalities, in the Charente-Maritime department, in France. The wind farm comprises 7 wind turbines delivering a unit capacity of 3 MW, for a total capacity of 21 MW.
This commissioning brings to 408 MW the gross installed capacity operated by FUTUREN for its own account.
FUTUREN also continued the construction works for its Demange project, located in the municipality of Demange-aux-Eaux, in the Meuse department, in France. This project comprises 9 wind turbines with a unit capacity of 2.2 MW, for a total capacity of 19.8 MW.
Furthermore, in early 2018, the Group signed a turbine supply agreement to purchase 6 wind turbines for the construction of its Faydunes project, located on the territory of the municipality of Saint-Affrique, in the Aveyron department, in France.
Finally, FUTUREN obtained a new building permit, free of any third-party claim, to install 7 wind turbines in the Hérault French department. The installed capacity of the future wind farm is estimated at 6.3 MW,
This new authorization brings to approximately 75 MW the capacity owned by FUTUREN which already received all necessary authorizations and are free of any third-party claim and ready to be built, including the Faydunes project (in the Aveyron department), the Demange project (in the Meuse department), the second tranche of Les Monts project (in the Aube department) and now a new project in the Hérault department.
2. The Group's activity over the first half of 2018
CHANGES IN ACCOUNTING STANDARDS
FUTUREN's consolidated financial statements for the first half of 2018 take into account two main events:
Ecoval 30 is a company specialized in the treatment of solid waste. As FUTUREN was actively pursuing the disposal of the company, Ecoval 30 was consolidated as a non-current asset classified as held for sale (IFRS 5 standard) as at December 31, 2017.
Since the discussions for the disposal of the company have not been successful, Ecoval 30 does no longer meet the criteria for application of the IFRS 5 standard as at June 30, 2018 and is therefore reintegrated into FUTUREN's consolidated financial statements using the global integration method in the first half of 2018. A new "Other activities" segment has been created for that purpose.
The Group continues to favor the sale of the Ecoval 30 entity.
The application of the new IFRS 15 standard as from January 1st, 2018 has two main consequences for the recognition of the revenue of the FUTUREN Group's Sale of electricity activity:
The application of the IFRS 15 standard reduced the revenue recorded in the first half of 2017 by a cumulative amount of 0.8 million euros.
A restatement of all these impacts is presented for the first half of 2017 for comparative purposes.
CONSOLIDATED INCOME STATEMENT
FUTUREN's consolidated revenue reached 33.8 million euros for the first half of 2018, up by + 7% compared to the first half of 2017 as restated.
The Sales of electricity activity relies on long term electricity buyback contracts (15 to 20 years depending on the country) with guaranteed tariffs. This secure activity accounted for 86% of the consolidated revenue in the first half of 2018.
The Development and management of wind farms activity registered a revenue of 2.1 million euros in the first half of 2018, down compared to the first half of 2017 as restated, mainly because of the termination of some contracts of management for third parties in Germany.
The revenue reported by Ecoval 30 and registered in the "Other Activities" segment amounts to 2.4 million euros in the first half of 2018, up by + 2% compared to the first half of 2017 as restated.
Following the same trend as the revenue, FUTUREN's consolidated EBITDA reached 18.8 million euros for the first half of 2018, up by + 6% compared to the first half of 2017 as restated.
The EBITDA of the Development and management of wind farms activity was down in the first half of 2018. The activity benefited in the first half of 2017 from positive non-recurring impacts, particularly related to the cancellation of a contentious supplier debt.
The EBITDA of the Other activities segment amounted to 0.4 million euros in the first half of 2018, in line with the first half of 2017.
In total, the consolidated EBITDA/revenue margin reached 56% for the first half of 2018.
FUTUREN's operating income recorded a strong increase and reached 5.0 million euros for the first half of 2018, compared to 2.9 million euros for the first half of 2017 as restated. It should be noted that the first half of 2017 was impacted by a non-recurring expense of 3.6 million euros related to the preparation of the capital transactions initiated by FUTUREN.
In the first half of 2018, FUTUREN recorded an impairment loss of 1.1 million euros to reduce the net assets of its subsidiary Ecoval 30 to fair value and depreciated an old receivable for an amount of 0.9 million euros
FUTUREN's financial income significantly improved and represented a net cost of 1.7 million euros for the first half of 2018, compared to a net cost of 3.8 million euros for the first half of 2017 as restated.
The net interest cost related to wind farms increased slightly over the past half-year period, mainly due to the commissioning of a wind farm in May 2018.
In the first half of 2018, the "Other" item benefited from the positive impact of the sale of the shares in a non-consolidated subsidiary for 1.0 million euros.
The consolidated net income for the first half of 2018 is a profit of 1.4 million euros, compared to a loss of 3.1 million euros recorded in the first half of 2017as restated.
DEBT AND CASH POSITION
The Group's net financial debt reached 116.0 million euros as at June 30, 2018, recording an increase of 11.5 million euros over the first half of 2018. This increase mainly reflects the new cash advances granted by the majority shareholder to finance the development of the Group.
During the first half of 2018, the majority shareholder granted 17.1 million euros as cash advances to the Group, mainly to finance the ongoing construction of wind farms.
FUTUREN's cash position decreased by 1.8 million euros over the half-year period. Operating activities generated a positive net cash inflow of 15.7 million euros. Loan drawings and new cash advances net of repayments enabled an additional cash inflow of 9.9 million euros. A sale also allowed to cash-in 1.0 million euros. On the other hand, the Group continued to invest at a very sustained pace, spending 25.5 million euros on the progress of its projects, and paid interest due for an amount of 2.8 million euros.
3. Significant events after the date of closing of the half-year financial statements
FUTUREN is a group active in the field of wind energy, present throughout the entire wind value chain. The Group develops, builds and owns wind farms in four countries: Germany, France, Morocco and Italy. In total, the Group manages 632 MW for its own account and for third parties.
Registered office: Cœur Défense – 100, esplanade du Général de Gaulle – 92932 Paris La Défense - France
Administrative address: Europarc de Pichaury - Bât. B9 - 1330, avenue JRGG de la Lauzière - BP 80199 - 13795 Aix-en-Provence Cedex 3 - France
Tel: +33 (0)4 42 904 904 – Fax: +33 (0)4 42 904 905 - www.futuren-group.com
The stock is listed on the compartment B of Euronext Paris, symbol: FTRN.
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