Etrion Releases Second Quarter 2014 Results

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| Source: Etrion Corporation
August 6, 2014, Geneva, Switzerland – Etrion Corporation (“Etrion” or the
“Company”) (TSX: ETX) (OMX: ETX), a solar independent 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, 2014.

Operational Highlights

  · Production: Produced 35.4 million (2013: 37.1 million) and 51.9 million
(2013: 53.1 million) kilowatt-hours of solar electricity from 17 solar power
plants in Italy during the three and six months ended June 30, 2014,
respectively.

  · Construction: Accelerated construction of the 70 megawatt (“MW”) solar park
in the North of Chile (“Project Salvador”), being built by SunPower Corporation
and owned initially 70% by Etrion, 20% by Total Energie Developpement, a
subsidiary of Total S.A., and 10% by Solventus Chile SpA. Project Salvador is
now expected to be fully operational by the end of 2014.

  · Development: Through the partnership with Hitachi High Technologies
Corporation (“Hitachi High-Tech”), a subsidiary of Hitachi Ltd., to develop
utility-scale solar projects in Japan, Etrion advanced on the development of its
first two projects, totaling 34 MW. Financial close for both projects is
expected before the end of September 2014, with construction to commence shortly
thereafter.

Financial Highlights

  · Revenue: Generated revenues of US$17.8 million (2013: US$18.4 million) and
US$26.1 million (2013: US$26.7 million) during the three and six months ended
June 30, 2014, respectively.

  · EBITDA: Recognized earnings before interest, taxes, depreciation and
amortization (“EBITDA”) of US$14.2 million (2013: US$14.3 million) and US$18
million (US$19.1 million) during the three and six months ended June 30, 2014,
respectively.

  · Bond Financing: Completed a bond issue in April 2014 of €80 million in
senior secured bonds in the Norwegian bond market at 8% annual interest with a 5
-year maturity, a portion of which was used to redeem the previous €60 million
corporate bonds.

  · Cash and Working Capital: Closed the second quarter of 2014 with a cash
balance of US$197.9 million (December 2013: US$94.9 million) and positive
working capital of US$180 million (December 2013: US$47.5 million).

Management Comments

Marco A. Northland, the Company’s Chief Executive Officer, commented, “The first
half of 2014, was a transformational period for Etrion as we were able to raise
over US$185 million in the capital markets, significantly strengthening our
balance sheet. We now have a fully-funded diversified near-term growth platform
that will complement our Italian portfolio going forward. In Chile, our 70 MW
Project Salvador remains ahead of schedule and is expected to be fully
operational by the end of this year. In Japan, we have made excellent progress
on our first two projects, together with Hitachi High-Tech, totaling 34 MW, with
financial close expected before the end of September 2014. Japan is a very
exciting market for Etrion, working alongside Hitachi High-Tech, where we expect
to have 100 MW of projects shovel-ready or under construction by the end of
2015.

Mr. Northland continued, “As communicated previously, certain changes were
proposed to the Italian Feed-in-Tariff (“FiT”) regime and we are still awaiting
the final version of the law to determine exactly what impact these changes will
have on our Italian portfolio. Based on our preliminary analysis, we are
confident that we will be able to meet our covenant obligations associated with
the project debt. We are exploring all options to best optimize the economics,
given Etrion’s strong track record in Italy and above expectation performance.
The proposed changes highlight the importance of our strategy shift two years
ago to diversify into new markets with different contract regimes. As our growth
is focused on countries outside of Europe, Italy will represent less than 50% of
our expected installed capacity in 2015.”

Results

During the three months ended June 30, 2014, Etrion reported a net loss of
US$1.4 million (loss per share of US$0.005) compared to a net loss of US$0.2
million (loss per share of US$0.001) for the comparable period of 2013. The net
results for the second quarter of 2014 were adversely impacted by lower solar
irradiation, a reduction in the spot market price in Italy and non-recurring
finance costs associated with the early redemption of the previous €60 million
corporate bonds.

During the six months ended June 30, 2014, Etrion reported a net loss of US$9.6
million (loss per share of US$0.031) compared to a net loss of US$5.7 million
(loss per share of US$0.028) for the comparable period of 2013. The net results
for the first half of 2014 were adversely impacted by lower solar irradiation, a
reduction in the spot market price in Italy and non-recurring operating and
general and administrative expenses as well as finance costs associated with the
early redemption of the previous €60 million corporate bonds.

Earnings Call

A conference call/webcast to present the Company’s second quarter 2014 results
will be held on Thursday, August 7, 2014, at 10:00 a.m. Eastern Daylight Time
(EDT) / 4:00 p.m. Central European Time (CET).

Dial-in details:

North America: +1-647-788-4922 / Toll Free: +1-877-223-4471 / Sweden Toll Free:
02-079-4343

Webcast:

A webcast will be available at:
http://www.investorcalendar.com/IC/CEPage.asp?ID=172033

In addition, the conference call presentation and the Company’s condensed
consolidated interim financial statements for the three and six months ended
June 30, 2014, and related documents will be available on the Company’s website
at www.etrion.com.

A replay of the telephone conference will be available until September 7, 2014.

Replay dial-in details:

North America: +1-416-621-4642 / Toll Free: +1-800-585-8367

Pass code for replay: 61065610

Other Disclosures

In July 2014, Etrion granted 3,220,212 restricted share units (“RSUs”) to
certain directors, officers and other eligible persons of the Company under the
new RSU plan that was approved by shareholders at the Company’s Annual and
Special General Meeting held in June 2014. The RSUs are exercisable, subject to
vesting provisions, over a period of three years.

About Etrion

Etrion Corporation is an independent power producer that builds, owns and
operates utility-scale solar power generation plants. Etrion owns 17 solar power
plants in Italy with approximately 60 MW of installed capacity and has a 70 MW
solar project in Chile under construction that is expected to be operational by
the end of 2014. Etrion is also actively developing greenfield solar power
projects in Chile and Japan. The Company is listed on the Toronto Stock Exchange
in Canada and the NASDAQ OMX Stockholm exchange in Sweden under ticker symbol
“ETX”. Etrion’s largest shareholder is the Lundin family, which owns
approximately 24% of the Company’s shares directly and through various trusts.

For additional information, please visit the Company’s website at www.etrion.com
or contact:

Pamela Chouamier – Investor Relations

Telephone: +41 (22) 715 20 90

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Note: The capacity of power plants in this release is described in approximate
megawatts on a direct current (“DC”) basis, also referred to as megawatt-peak
(“MWp”).

Etrion discloses the information provided herein pursuant to the Swedish
Securities Market Act and/or the Swedish Financial Instruments Trading Act. The
information was submitted for publication in Sweden at 22:00 Central European
Time on August 6, 2014.

Non-IFRS Measure:

This press release includes a non-International Financial Reporting Standard
(“IFRS”) measure, EBITDA. Non-IFRS measures have no standardized meaning
prescribed under IFRS and therefore such measures may not be comparable with
those used by other companies. EBITDA is useful to analyze and compare
profitability between companies and industries because it eliminates the effects
of financing and accounting policy decisions. Refer to Etrion’s MD&A for the
three and six months ended June 30, 2014, for a reconciliation of EBITDA
reported during the relevant periods.

Forward-Looking Information:

This press release contains certain “forward-looking information”. All
statements, other than statements of historical fact, that address activities,
events or developments that the Company believes, expects or anticipates will or
may occur in the future (including, without limitation, statements relating to
electricity revenue from the Italian projects which is subject to confirmation
of both the applicable FiT to which the Company is entitled by the state-owned
company Gestore Servizi Energetici and the applicable spot market price by the
local utilities for electricity sales to the national grid and statements
relating to the anticipated timing for the Company’s development projects in
Chile and Japan and the Company’s anticipated growth in Japan) constitute
forward-looking information. This forward-looking information reflects the
current expectations or beliefs of the Company based on information currently
available to the Company as well as certain assumptions including, without
limitation, confirmation of the applicable FiT and spot market price for
electricity sales, the ability of the Company to obtain project financing on
economic terms, if at all, and all required permits in a timely fashion and the
ability of the Company to identify and acquire additional solar power projects.
Forward-looking information is subject to a number of significant risks and
uncertainties and other factors that may cause the actual results of the Company
to differ materially from those discussed in the forward-looking information,
and even if such actual results are realized or substantially realized, there
can be no assurance that they will have the expected consequences to, or effects
on the Company. Factors that could cause actual results or events to differ
materially from current expectations include, but are not limited to, the lack
of confirmation or reduction of the applicable FiT and the spot market price for
electricity sales from the Italian projects by the designated entities,
uncertainties with respect to the receipt or timing of all applicable permits
for the development of projects, the risk that the Company may not be able to
obtain project financing on economic terms, if at all, the risk that the Company
may not be able to identify and/or acquire additional renewable energy projects
on economic terms, if at all, and changes in applicable laws and regulations
that would have a negative impact on existing or future solar projects.

Any forward-looking information speaks only as of the date on which it is made
and, except as may be required by applicable securities laws, the Company
disclaims any intent or obligation to update any forward-looking information,
whether as a result of new information, future events or results or otherwise.
Although the Company believes that the assumptions inherent in the forward
-looking information are reasonable, forward-looking information is not a
guarantee of future performance and accordingly undue reliance should not be put
on such information due to the inherent uncertainty therein.