Highlights in the second quarter 2016:
· All 25 power plants produced electricity in the 2nd quarter until mid June when the 17 power plants affected by the termination of FIT where permanently shut down. The power plants are shut down as a consequence of the ruling in the Administrative Court (TAR) of Lazio confirming the legal basis for GSE's termination decision. The power plants were shut down due to invalid certification of the modules.
· The SPVs affected by the criminal proceedings were admitted to commence financial restructuring by the Bankruptcy Court in Milan. The deadline for reaching a financial restructuring plan has been prolonged from the 8th of July to the 6th of September 2016.
· EAM Solar Italy 3 srl, one of the unaffected companies, was sold in June for a total consideration of EUR 3,55M.
· The Criminal Court proceedings in Milan commenced the 7th of June 2016. On 13th of July 2016 the tribunal reconfirmed EAM Solar ASA as victim of criminal contractual fraud.
· The power production in the quarter was 9.652 GWh. At the end of June 2016, accumulated power production for H1 was 16.126 GWh.
· EBITDA in the quarter was EUR 169k, adjusted for legal costs and SPVs with terminated FIT contracts, the EBITDA was EUR 1.1 million.
· Cost reduction measures implemented have started to take effect in the 2nd quarter 2016.
For information, please contact:
Viktor E Jakobsen, CEO, phone +47 9161 1009, viktor@eam.no
About EAM Solar: EAM Solar is a utility company that acquires and operates solar power plants. The Company currently owns solar PV power plants in Italy. The plants are operating under long-term sales contracts.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
