PARIS--(BUSINESS WIRE)--Regulatory News:
Revenues up 81% to €2.7 million, Gross Margin up to 41%, Project Backlog up 38% and Pipeline accelerating to €350 million confirm the growth trend of ENGIE Eps (Paris:EPS) in a booming global market thanks to the full support and the more and more efficient integration within ENGIE.
2019 FIRST HALF KEY FIGURES
Revenues and Other Income amount to €2.7 million as of 30 June 2019, up 81% compared to the 2018 first half. Growth is mainly driven by the successful deployment of microgrids in Africa and Asia Pacific such as the Comoros, Somaliland and New Caledonia, reaching as of today a total of 50 customers in 25 countries across the globe.
As of the date of this Press Release, Project Backlog corresponds to €33.8 million, an increase of 38% compared to 28 September 2018, of which €24.1 million of final and irrevocable orders on an EPC basis, and €9.7 million of projects secured on a Power Purchase Agreements (PPA) basis, for which financing is currently under structuring and Pipeline increased by 43% compared to 28 September 2018, reaching €350 million.
Order intake in 2019 has reached 37.4MW, representing approximately €18.8 million.
Gross margin increased to 41%, compared to 26% in 2018 first half, mainly driven by a different revenue mix and despite an increase in project size.
Personnel costs increased by 42% reaching €3.1 million compared to the €2.2 million of 2018 first half due to the expected growth of the Company.
Other Operating Expenses increased by 45% amounting to €1.0 million compared to €0.7 million in first half 2018 mainly driven by the major commitment in R&D and perfectly in line with the planned growth of the internal organizational structure and the execution of ENGIE EPS Long Term Strategic Plan.
R&D investments amounted to €1.4 million, including expenses and capitalized amounts. These investments represent 52% of consolidated revenues and 31% of all fixed costs in perfect continuity with the well-known strong commitment of ENGIE EPS in R&D and innovation.
EBITDA loss amounts to €3.4 million in first half 2019 compared to the €2.8 million loss in the same period of 2018.
Net Financial Position at the end of June 2019 improved to € -2.0 million from € -13.2 million on 30 June 2018, mainly due to the €30 million capital increase completed on 6 August 2018, despite working capital exposure and continuous investments in R&D. In this respect, ENGIE Eps has been supported by Societe Generale, which in June 2019 approved an additional €7.5 million facility. In this context, ENGIE has confirmed its strong support for the new strategy, including ENGIE EPS in the scope of the Renewables Global Business Line and meeting ENGIE EPS’ short term cash needs and working capital exposure in form of intercompany lending.
About ENGIE EPS
ENGIE EPS is part of the ENGIE group and specializes in microgrids and storage solutions that enable intermittent renewable sources to be transformed into a stable power source. Listed on Euronext Paris (EPS:FP), ENGIE EPS is listed in the CAC® Mid & Small and the CAC® All-Tradable indices. Its registered office is in Paris and conducts its research, development and manufacturing in Italy. Thanks to technology covered by 130 patents and applications, ENGIE EPS develops utility scale energy storage systems to stabilize electrical grids that are heavily penetrated by renewable sources in developed countries, and microgrids in islands and emerging economies to power off-grid areas at a lower cost than fossil fuels. More information on www.engie-eps.com.
About ENGIE
Our Group is a global reference in low-carbon energy and services. In response to the urgency of climate change, our ambition is to become the world leader in the zero-carbon transition "as a service" for our customers, in particular global companies and local authorities. We rely on our key activities (renewable energy, gas, services) to offer competitive turnkey solutions.
With our 160,000 employees, our customers, partners and stakeholders, we are a community of Imaginative Builders, committed every day to more harmonious progress.
Turnover in 2018: EUR 60.6 billion. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe) and non-financial indices (DJSI World, DJSI Europe and Euronext Vigeo Eiris - World 120, Eurozone 120, Europe 120, France 20, CAC 40 Governance).
1.1 Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT
|
30/06/2019 |
31/12/2018 |
30/06/2018 |
||
Revenues |
2,626,522 |
15,540,960 |
1,428,893 |
||
Other Income |
32,607 |
119,721 |
42,792 |
||
TOTAL REVENUES AND OTHER INCOME |
2,659,129 |
15,660,681 |
1,471,685 |
||
Cost of goods sold |
(1,592,391) |
(10,983,399) |
(1,094,152) |
||
GROSS MARGIN FROM SALES |
1,066,737,65 |
4,677,282,29 |
377,532,18 |
||
% on Revenues |
41% |
30% |
26% |
||
Personnel costs |
(3,099,999) |
(4,352,366) |
(2,186,498) |
||
Other operating expenses |
(1,031,840) |
(1,647,802) |
(712,701) |
||
Other costs for R&D and industrial operations |
(288,288) |
(3,279,710) |
(248,793) |
||
EBITDA excluding Stock Option and Incentive Plans expenses (1) |
(3,353,390) |
(4,602,596) |
(2,770,459) |
||
Amortization and depreciation |
(1,487,957) |
(1,655,407) |
(634,923) |
||
Impairment and write down |
(419,686) |
(289,038) |
(63,166) |
||
Non recurring income and expenses and Integration costs |
(782,727) |
(2,627,433) |
(1,506,077) |
||
Stock options and Incentive plans |
(702,486) |
(2,723,817) |
(1,165,957) |
||
EBIT |
(6,746,245) |
(11,898,290) |
(6,140,582) |
||
Net financial income and expenses |
(165,573) |
(692,014) |
(797,998) |
||
Revaluation of European Investment Bank warrants liabilities (IFRS 2) and other impacts of EIB loan prepayment |
0 |
3,777,134 |
3,777,134 |
||
Income Taxes |
758,275 |
78,532 |
53,163 |
||
NET INCOME (LOSS) |
(6,153,543) |
(8,734,637,72) |
(3,108,281,78) |
||
Attributable to: |
|
||||
Equity holders of the parent company |
(6,153,543) |
(8,734,638) |
(3,108,282) |
||
Non-controlling interests |
0 |
0 |
0 |
||
Basic earnings per share |
(0,48) |
(0,83) |
(0,35) |
||
Weighted average number of ordinary shares outstanding |
12,766,860 |
10,525,521 |
8,816,135 |
||
Diluted earnings per share |
(0,48) |
(0,83) |
(0,35) |
||
(1) EBITDA excluding Stock Option and Incentive Plans expenses is not defined by IFRS. It is defined in notes 3.8 and 4.6.
|
|||||
1.2 Consolidated Statement of Other Comprehensive Income
OTHER COMPREHENSIVE INCOME
|
30/06/2019 |
31/12/2018 |
30/06/2018 |
||
NET INCOME (LOSS) |
(6,153,543) |
(8,734,638) |
(3,108,282) |
||
Exchange differences on translation of foreign operations and other differences |
(4,437) |
(156) |
8,484 |
||
Actuarial gain and (losses) on employee benefits |
(106,488) |
(43,733) |
5,867 |
||
Other comprehensive income (loss) for the year, net of tax |
(110,924) |
(43,889) |
14,350 |
||
Total comprehensive income for the year, net of tax |
(6,264,467) |
(8,778,527) |
(3,093,932) |
||
Attributable to Equity holders of the parent company |
(6,264,467) |
(8,778,527) |
(3,093,932) |
1.3 Consolidated Balance Sheet
ASSETS
|
30/06/2019 |
31/12/2018 |
30/06/2018 |
||
Property, plant and equipment |
3,238,849 |
1,294,653 |
732,618 |
||
Intangible assets |
7,988,719 |
7,986,470 |
6,723,850 |
||
Investments in entities accounted using the equity method |
996 |
996 |
|
||
Other non current financial assets |
143,227 |
143,227 |
74,287 |
||
TOTAL NON CURRENT ASSETS |
11,371,792 |
9,425,346 |
7,530,755 |
||
Trade and other receivables |
8,855,916 |
8,164,968 |
2,171,071 |
||
Inventories |
3,153,814 |
3,052,853 |
8,942,062 |
||
Other current assets |
3,181,856 |
1,981,965 |
1,154,696 |
||
Current financial assets |
435,500 |
350,000 |
0 |
||
Cash and cash equivalent |
4,423,931 |
10,860,527 |
3,900,009 |
||
TOTAL CURRENT ASSETS |
20,051,017 |
24,410,314 |
16,167,838 |
||
TOTAL ASSETS |
31,422,809 |
33,835,660 |
23,698,593 |
||
EQUITY AND LIABILITIES
|
30/06/2019 |
31/12/2018 |
30/06/2018 |
||
Issued capital |
2,553,372 |
2,553,372 |
1,915,029 |
||
Share premium |
48,147,696 |
48,843,750 |
20,550,878 |
||
Other Reserves |
4,603,320 |
4,932,184 |
5,753,829 |
||
Retained Earnings |
(38,298,766) |
(30,296,289) |
(30,297,493) |
||
Profit (Loss) for the period before Revaluation of European Investment Bank warrants liabilities (IFRS 2) |
(6,153,543) |
(12,511,771) |
(6,885,416) |
||
Total Equity before European Investment Bank variation (IFRS 2) |
10,852,078 |
13,521,244 |
(8,963,172) |
||
Revaluation of European Investment Bank warrants liabilities (IFRS 2) - Impact on Net Profit |
0 |
3,777,134 |
3,777,134 |
||
TOTAL EQUITY |
10,852,078 |
17,298,378 |
(5,186,038) |
||
Severance indemnity reserve and Employees' benefits |
5,047,361 |
4,226,240 |
2,075,652 |
||
Non current financial liabilities |
4,704,560 |
1,810,167 |
2,313,179 |
||
Other non current liabilities |
1,619,796 |
0 |
0 |
||
Non current deferred tax liabilities |
16,494 |
16,494 |
61,890 |
||
TOTAL NON CURRENT LIABILITIES |
11,388,211 |
6,052,901 |
4,450,721 |
||
Trade payables |
4,310,379 |
5,513,949 |
3,952,702 |
||
Other current liabilities |
3,149,166 |
2,709,845 |
5,658,747 |
||
Current financial liabilities |
1,722,975 |
2,240,696 |
14,822,462 |
||
Income tax payable |
0 |
19,892 |
0 |
||
TOTAL CURRENT LIABILITIES |
9,182,519 |
10,484,381 |
24,433,911 |
||
TOTAL EQUITY AND LIABILITIES |
31,422,809 |
33,835,660 |
23,698,593 |
1.4 Consolidated Statement of Changes in Equity
CONSOLIDATED STATEMENT OF
|
Share Capital |
Premium Reserve |
Stock Option and Warrants plan reserve |
Other Reserves |
Retained Earnings
|
Profit (Loss) for
|
Total Equity before European Investment Bank variation (IFRS 2) |
Revaluation of European Investment Bank warrants liabilities (IFRS 2) and other impacts of EIB loan prepayment |
TOTAL EQUITY |
|||||||
Net Equity as of 31 December 2017 |
1,687,925 |
19,451,395 |
6,604,909 |
(173,645) |
(20,198,389) |
(5,923,291) |
1,448,905 |
(3,086,219) |
(1,637,314) |
|||||||
IFRS 15 first time adoption as at 1 January 2018 |
|
|
|
|
(1,074,563) |
|
(1,074,563) |
|
(1,074,563) |
|||||||
Previous year result allocation |
0 |
0 |
|
0 |
(9,009,510) |
5,923,291 |
(3,086,219) |
3,086,219 |
0 |
|||||||
Stock option and warrants |
0 |
0 |
(1,453,787) |
|
0 |
0 |
(1,453,787) |
|
(1,453,787) |
|||||||
Shareholder's capital increase |
865,446 |
29,392,355 |
|
0 |
0 |
0 |
30,257,801 |
|
30,257,801 |
|||||||
Other movements |
|
|
|
(1,560) |
(13,671) |
|
(15,231) |
|
(15,231) |
|||||||
Loss for the period |
0 |
0 |
|
0 |
0 |
(12,511,771) |
(12,511,771) |
3,777,134 |
(8,734,638) |
|||||||
Total comprehensive income |
0 |
0 |
0 |
(43,733) |
(156) |
0 |
(43,889) |
0 |
(43,889) |
|||||||
Net Equity as of 31 December 2018 |
2,553,372 |
48,843,750 |
5,151,122 |
(218,938) |
(30,296,289) |
(12,511,771) |
13,521,245 |
3,777,134 |
17,298,379 |
|||||||
Previous year result allocation |
|
|
|
(27,704) |
(8,706,934) |
12,511,771 |
3,777,134 |
(3,777,134) |
0 |
|||||||
Stock option and warrants |
|
|
(181,831) |
|
|
|
(181,831) |
|
(181,831) |
|||||||
Shareholder's capital increase |
|
|
|
|
|
|
0 |
|
0 |
|||||||
Other movements |
|
(696,055) |
|
(12,841) |
708,895 |
|
(1) |
|
(1) |
|||||||
Loss for the period |
|
|
|
|
|
(6,153,543) |
(6,153,543) |
|
(6,153,543) |
|||||||
Total comprehensive income |
0 |
0 |
|
(106,488) |
(4,437) |
0 |
(110,926) |
0 |
(110,926) |
|||||||
Net Equity as of 30 June 2019 |
2,553,372 |
48,147,695 |
4,969,291 |
(365,971) |
(38,298,766) |
(6,153,543) |
10,852,078 |
0 |
10,852,078 |
1.5 Consolidated Statement of Cash Flows
CASH FLOW STATEMENT
|
30/06/2019 |
31/12/2018 |
30/06/2018 |
||
Net Income or Loss |
(6,153,543) |
(8,734,638) |
(3,108,282) |
||
Non-cash adjustment to reconcile profit before tax to net cash flows |
0 |
(357,655) |
0 |
||
Revaluation of European Investment Bank warrants liabilities (IFRS 2) and other impacts of EIB loan prepayment |
0 |
(3,777,134) |
(3,777,134) |
||
Amortisation and depreciation |
1,487,957 |
1,655,407 |
634,923 |
||
Impairment and write down |
419,686 |
289,038 |
63,166 |
||
Stock option and incentive plans impact |
702,486 |
(1,466,296) |
643,962 |
||
Defined Benefit Plan |
319,914 |
443,411 |
147,364 |
||
Non-cash variation in bank debts |
0 |
488,338 |
88,904 |
||
Working capital adjustments |
|
|
|
||
Decrease (increase) in tax assets |
(318,851) |
719,544 |
714,203 |
||
Decrease (increase) in trade and other receivables and prepayments |
(1,976,338) |
(4,362,766) |
5,410,135 |
||
Decrease (increase) in inventories |
(100,961) |
1,780,617 |
(4,108,592) |
||
Increase (decrease) in trade and other payables |
(1,203,826) |
3,224,791 |
2,340,922 |
||
Increase (decrease) in SARs Liability |
(289,110) |
0 |
0 |
||
Increase (decrease) in non current assets and liabilities |
113,925 |
2,686,501 |
(820,065) |
||
Net cash flows from operating activities |
(6,998,662) |
(7,410,842) |
(1,770,494) |
||
Investments |
|
|
|
||
Net Decrease (Increase) in intangible assets |
(1,174,207) |
(3,137,602) |
(992,234) |
||
Net Decrease (Increase) in tangible assets |
(208,878) |
(780,971) |
(81,199) |
||
Net Decrease (Increase) due to IFRS 16 FTA |
(2,051,318) |
0 |
0 |
||
Net cash flows from investments activities |
(3,434,402) |
(3,918,573) |
(1,073,433) |
||
Financing |
|
|
|
||
Increase (decrease) in bank debts |
3,996,468 |
(12,304,402) |
1,179,811 |
||
Shareholders cash injection |
0 |
30,257,801 |
1,326,586 |
||
Investments in company accounted for using the equity method |
0 |
(996) |
0 |
||
Net cash flows from financing activities |
3,996,468 |
17,952,403 |
2,506,397 |
||
|
|
|
|
||
Net cash and cash equivalent at the beginning of the period |
10,860,527 |
4,237,540 |
4,237,540 |
||
NET CASH FLOW FOR THE PERIOD |
(6,436,596) |
6,622,988 |
(337,530) |
||
NET CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD |
4,423,931 |
10,860,527 |
3,900,009 |