BORDEAUX, France, October 31, 2014 /PRNewswire/ --
Europlasma, the French company with
a global reach that builds, designs and operates plasma solutions
for renewable energy generation and hazardous waste recovery, today
published its 2014 half-yearly consolidated financial statements as
approved by the Board of Directors on 31 October 2014.
Commenting on the first-half results, CEO Jean-Eric Petit said:
"In the first half of 2014, Europlasma focused its efforts on
implementing strategic, financial and operational measures to
complete the Group's industrial recovery. These measures are not
yet reflected in the figures for the first half, but they do mean
that we can embark on the next stages in our development with
renewed confidence. The huge success of our last capital increase
and the €35.9 million raised mean that Europlasma now has the means
necessary to realise its growth potential. We can look forward to
the next few years with peace of mind, still with the same ambition
of playing a key role in sustainable development and the energy
transition."
Activity and results
in thousands of euros (EUR'000) 30/06/2014 30/06/2013 Difference
Revenue 4,754 5,656 -902
EBITDA -5,280 -2,200 -3,080
Operating income -7,446 -4,114 -3,332
Financial income -553 -297 -256
Profit (loss) from discontinued
operations 0 -2,684 2,684
Net income for the year -7,973 -7,358 -615
Net income, Group share -7,961 -6,014 -1,947
Earnings per share (in euros per share) -0.37 -0.38 0.01
Source: 2014 half-yearly consolidated financial statements
approved by the Board of Directors on 31/10/2014
Activity and Revenue
Revenue in the first half of 2014 was down 16% compared with H1
2013: Torches & Processes and Hazardous Waste both saw a
decline in revenue; however revenue for the Renewable Energy sector
rose.
Renewable Energy booked revenue of €1,109,000, compared
with €692,000 at 30/06/2013, linked to progress on the performance
of the EPC contract for the CHO Morcenx plant. Preliminary delivery
took place on 13 June 2014 following
the agreed performance tests.
Commercially, the development of new plant projects continued:
in France, studies were carried
out with a view to filing full licence applications for several
projects during the second half of 2014. The Canadian developer
Fourth State Energy has selected CHO Power technology for its plant
projects, especially in Nova
Scotia. A preliminary design was submitted to it in early
2014, while the detailed design is expected to follow shortly.
Hazardous Waste destruction was down 17% at 30/06/2014 compared with 30/06/2013, contributing
€3,584,000 to consolidated revenue. The volume of treated asbestos
waste fell 26%, with 1,785 tonnes treated at 30/06/2014 versus 2,400 tonnes at 30/06/2013.
Production in the first half of 2014 was affected by outages on
torch rectifiers and by two scheduled shutdowns lasting around five
weeks to upgrade the furnace, compared with just one in the first
half of 2013.
In a tough economic climate, commercial activity slowed in terms
of orders and deliveries (-10%). Conversely, a 33% increase in
quotations was recorded, a sign of the interest among waste
producers in a final treatment solution.
The Torches & Processes business generated revenue of
€61,000, compared with €649,000 at 30/06/2013. H1 2013 revenue
was mainly generated under the KNPP (Kozloduy Nuclear Power Plant)
contract, temporarily suspended at the customer's request in
2014.
A sales drive in recent months led to three studies being
commissioned in the first half of 2014, underscoring the global
interest in Europlasma technology in sectors as diverse as the
steel industry, biofuel production and waste neutralisation.
Results
Operating loss in the first half of 2014 stood at -€7,446,000,
versus -€4,114,000 at 30/06/2013. This was mainly due to
operational expenses linked to the start-up in February 2014 and then the ramp-up of the CHO
Morcenx plant and related tests: operating losses recorded by the
Renewable Energy segment thus amounted to -€3,994,000, against
-€2,342,000 at 30/06/2013.
The Hazardous Waste business, impacted by the lower volume of
vitrified asbestos waste, recorded an operating loss of
-€1,413,000, compared with -€653,000 at 30/06/2013.
The Holding Company, Torches & Processes segment, which
bears all Group corporate costs, recorded an operating loss of
-€2,015,000, against -€1,019,000 at 30/06/2013, due to the low
turnover during the period and the €593,000 impairment loss booked
on the KIWI pilot.
Adjusting for financial income of -€553,000 and minority
interests, the net loss came to -€7,961,000, compared with a loss
of -€6,014,000 at 30 June 2013.
Consolidated financial position and cash flow
In thousands of euros (TEUR) 30/06/2014 31/12/2013 Difference
Non-current assets 29,981 31,597 -1,617
Current assets 13,666 16,693 -3,027
Consolidated equity - Group share -1,410 2,374 -3,784
Non-controlling interests 487 748 -260
Non-current financial liabilities 8,597 15,935 -7,338
Other non-current liabilities 1,338 1,729 -391
Current financial liabilities 10,979 1,810 9,169
Other current liabilities 23,655 25,694 -2,039
Net debt 18,279 15,767 2,512
Gearing 1.05 0.83 0.22
Operating cash flows -5,126 -4,282 -844
Net disinvestments/(Investments) -149 104 -254
Shareholders' equity - Group share, in euros per
share -0.07 0.15 -0.22
Source: 2014 half-yearly consolidated financial statements
approved by the Board of Directors on 31
October 2014
The balance sheet total stood at €43,646,000, versus €48,290,000
at 31/12/2013, a decrease of €4,644,000.
For balance-sheet assets, this change is the result of a
decrease in non-current assets of €1,617,000 (depreciation,
amortisation and impairment of fixed assets for €2,203,000, higher
than the asset purchases of €932,000) and a decrease in current
assets of €3,027,000 (affecting all items in view of the downtick
in business) compared with 31/12/2013.
In balance-sheet liabilities, equity fell by €4,045,000
between 31/12/2013 and 30/06/2014 due
to the loss for the period of -€7,974,000, partially offset by the
capital increase in February 2014 for
€4,146,000, premium included.
Group net debt amounted to €18,279,000 at 30/06/2014, versus net
debt of €15,767,000 at 31/12/2013. This increase is mainly due to
new short-term funding of €2.8m granted to the Group in
April 2014.
Outlook
Renewable energy
At Morcenx, the CHO Power plant reached nominal efficiency.
Staff are currently working on implementing the action plan drawn
up last June to increase plant capacity ahead of a final delivery
of CHO Morcenx in the first quarter of 2015.
At the same time, CHO Power and its partner ENRgy are developing
the CHO Tiper project in Thouars (Deux-Sèvres), based on the same
technical and economic model as the CHO Morcenx plant. The special
purpose vehicle CHO Tiper SAS, owned equally by CHO Power and
ENRgy, was set up and licence applications filed with the
prefecture in early October 2014.
In parallel, CHO Power is continuing its sales and marketing
efforts. The technology developed by CHO Power has sparked
considerable interest among French, European and international
players. Qualified business contacts and delegations of various
origins have already visited the Morcenx site, the first step
towards commercial negotiations.
Hazardous waste
The Group is currently finalising the optimisation plan for its
asbestos waste vitrification plant, with an investment expected to
be in the region of €1m. With an upgraded furnace combined with
powerful auxiliaries, 2015 could be the year when nominal
production capacity is reached.
The Group intends to base the development of this activity on
its know-how: Inertam is the only facility in the world for the
destruction and recovery of asbestos waste, in a market that still
enjoys a favourable regulatory environment.
Studies and Engineering, Torches and Processes
The efforts made by Europlasma in terms of communication and
marketing, which have already led to three studies being
commissioned during the first half of 2014, continue to bear fruit,
with a new study commissioned for the steel industry.
Europlasma is actively targeting the nuclear waste market with a
short-term goal of launching two separate projects in Europe. In Asia and North
America, new business development is picking up and could
lead to new contracts being signed sometime in 2015.
Important notice
This release contains provisional information and statements
based on the best estimates of the Management at the date of their
publication. This information is, by nature, subject to risks and
uncertainties which are difficult to predict and generally outside
of the Group's field of action. These risks include the risks
listed in the Group's reference document available on its website
http://www.europlasma.com.
Consequently, the future performance of the Group may differ
significantly from the provisional data communicated and the Group
can make no commitment to the achievement of these provisional
elements.
APPENDICES
1. GLOSSARY
CHO Morcenx : Simplify joint-stock company (Société
par Actions Simplifiée), owner of the waste and biomass-to-energy
power plant in Morcenx (France),
25% owned by Europlasma Group, through its sub CHO Power.
EBITDA : This is the net consolidated revenue,
including companies' fiscal expenses, net financial expenses and
net appropriations to depreciation and provisions.
EPC : Engineering, Procurement and Construction
contract. This is a contract of engineering, suplly and
construction.
Gearing : Net debt / (net debt + equity ratio)
KIWI : Kobelco Eco Solution (KES)
Industrial CHO PoWer GasIfication is a R&D
program that aims to test the combination of a new type of gasifier
developed by KES and the Turboplasma ® (syngas cleaning process by
plasma) developed by Europlasma, for the production of energy form
waste and biomass.
KNPP : Kozloduy Nuclear Power
Plant is a contact for the supply of a plasma furnace to
reduce and immobilize radioactive waste in Bulgaria.
Net debt : Financial debt less liquid assets and short
term investment securities.
O&M : Operations and Maintenance Contract.
Take Over Date : provisional technical
delivery of the power plant in Morcenx within the EPC contract.
2. SEGMENT INFORMATION
Holding
Company,
R&D, Air
Engineering Hazardous Renewable and
30/06/2014 and Torches waste Energies Gas Total
Goodwill 0 2,615 0 8 2,624
Other intangible assets 927 29 335 0 1,292
Property, plant and equipment 9,384 5,092 68 0 14,544
Other non-current assets 1,264 735 8,946 576 11,521
Cash and cash equivalent 820 207 125 144 1,297
Total assets 15,127 12,113 15,362 1,044 43,646
Financial liabilities 10,357 2,711 6,507 0 19,576
Revenue 61 3,584 1,109 0 4,754
Operating income -2,015 -1,413 -3,994 -23 -7,446
EBITDA -940 -186 -4,131 -23 -5,280
Net increase in depreciation, amortisation,
and impairment -1,075 -1,228 100 0 -2,203
Holding
Company,
R&D, Air
Engineering Hazardous Renewable and
31/12/2013 and Torches waste Energies Gas Total
Goodwill 0 2,615 0 8 2,624
Other intangible assets 920 21 497 0 1,438
Property, plant and equipment 10,336 5,530 71 0 15,937
Other non-current assets 1,288 732 9,003 576 11,599
Cash and cash equivalent 311 880 742 45 1,978
Total assets 16,512 13,739 16,326 1,713 48,290
Financial liabilities 7,386 2,698 7,661 0 17,746
Revenue 1,613 9,175 1,784 0 12,572
Operating income -1,950 -767 -6,402 -17 -9,135
EBITDA -441 1,545 -6,331 -113 -5,341
Net increase in depreciation, amortisation,
and impairment -1,509 -2,311 -422 96 -4,146
Holding
Company,
R&D, Air
Engineering Hazardous Renewable and
30/06/2013 and Torches waste Energies Gas Total
Goodwill 0 2,615 0 0 2,615
Other intangible assets 695 17 649 0 1,361
Property, plant and equipment 10,988 4,931 2 0 15,920
Other non-current assets 1,290 737 9,246 0 11,273
Cash and cash equivalent 233 309 2 0 545
Total assets* 16,976 13,925 16,466 20,325 67,692
Financial liabilities 9,464 2,686 1,097 0 13,247
Revenue 649 4,315 692 0 5,656
Operating income -1,119 -653 -2,342 0 -4,114
EBITDA -486 585 -2,299 0 -2,200
Net increase in depreciation, amortisation,
and impairment -633 -1,238 -279 0 -2,150
* The distribution of total assets by sector has been revised
since the segment information disclosed in the 2013 half-yearly
financial statements.
Source: 2014 half-yearly consolidated financial statements
approved by the Board of Directors on 31/10/2014
Press and Investors contacts
EUROPLASMA
Jean-Eric PETIT - Chief Executive Officer
Estelle MOTHAY - Chief Financial Officer
Anne BORDERES - Communication Manager
Tel: +33-(0)-556-497-000
contactbourse@europlasma.com
CAPVALUE
Samuel BEAUPAIN - Relations presse - +33-(0)1-80-81-50-05 -
sbeaupain@capvalue.fr