Etrion Corporation, an independent solar power producer, today released its condensed consolidated interim financial statements and related management’s discussion and analysis (“MD&A”) for the three and six months ended June 30, 2013.
Marco A. Northland, the Company’s Chief Executive Officer, commented: “Our Italian assets continue to perform in line with the budget, despite having experienced an unusually large number of rainy days during the first half of 2013 and we expect to produce over 100 kilowatt-hours(“kWh”) of solar electricity during the year.
We are also making excellent progress on our development pipeline in Chile. We announced earlier this week the signing of our first power purchase agreement (“PPA”), a 15-year fixed price take or pay contract with Atacama
Minerals Chile S.C.M and we have pre-selected the EPC contractor for the construction of this project. We expect financial close to be reached by December 2013 and for the project to be operational by the end of the second quarter of 2014. We are also advancing on the permitting process for an additional aggregate capacity of 90 megawatts in Chile, which should be fully permitted by the end of 2014. Becoming cash flow positive remains our top
priority and I believe Etrion is well positioned to reach this target in 2015 as we diversify in terms of geography and contract regime. It is very exciting to see that solar can compete with traditional sources of electricity, allowing us to act like any other utility company in Chile. Once future projects are connected, we will smooth the impact of seasonality on our business, positively impacting our net results and cash flow position.”
Sorurce: Etrion Corporation
Results
During the three and six months ended June 30, 2013, the Company reported a net loss of US$0.2 million (loss per share of US$0.001) and a net loss of US$5.7 million (loss per share of US$0.028), respectively, compared to a net
income of US$0.8 million (earnings per share of US$0.004) and a net loss US$1.5 million (loss per share of US$0.008) during the comparable periods in 2012.
During the three and six months ended June 30, 2013, the Group produced approximately 1% and 8% less electricity, respectively, compared to the same periods of 2012, due mainly to lower solar irradiation in 2013. In addition, the
Group’s revenues were also adversely impacted by a reduction ofthe spot market price in Italy. The Group received an average of US$0.07 per kWh during the three and six months ended June 30, 2013, compared to US$0.09 per kWh during the three months ended June 30, 2012 and US$0.10 during the six months ended June 30, 2012.
The net results for the three months ended June 30, 2013, were also adversely affected by non-recurring other expenses of US$0.2 million and non-cash items of US$4.8 million, including depreciation and amortization of US$5.0
million and stock-based compensation of US$0.2 million, offset by unrealized fair value gains associated with derivative financial instruments of US$0.4 million. Excluding these non-recurring and non-cash items, the Company’s net income for the three months ended June 30, 2013, would have been US$4.8million.
The net results for the six months ended June 30, 2013, were also adversely affected by non-recurring items of US$0.6 million, related to an impairment loss associated with the Company’s business development activities of US$0.4 million and other expenses of US$0.2 million and non-cash items of US$10.1 million, including depreciation and amortization of US$10.1 million and stock-based compensation of US$0.3 million, offset by unrealized fair value gains associated with derivative financial instruments of US$0.3 million. Excluding these non-recurring and non-cash items, the Company’s net income for the six months ended June 30, 2013, would have been US$5.1 million.