DGAP-News: S.A.G. Solarstrom AG on target despite general market slump
(firmenpresse) - DGAP-News: S.A.G. Solarstrom AG / Key word(s): Quarter Results
S.A.G. Solarstrom AG on target despite general market slump
07.11.2013 / 07:30
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S.A.G. Solarstrom AG on target despite general market slump
- Installation volume in Europe slumps by over 50%
- Overall performance of S.A.G. Solarstrom AG only 11.5% below previous
year
- Sales in the first nine months at EUR74.5 million
- EBIT at -EUR2.8 million
- Operative result marked by international expansion and project activity
- Forecast for entire year confirmed
Freiburg i. Br., November 7, 2013. S.A.G. Solarstrom AG (German security
identification number: 702 100, ISIN: DE0007021008) has achieved sales of
EUR74.5 million (Q1-Q3 2012: EUR90.1 million) in continuing operations in
the first nine months of 2013 despite the very adverse market environment,
with a market slump in Europe of over 50%. The Group has continued to
implement projects successfully in Europe despite massive market turbulence
and has developed new markets outside of Europe. EBIT was still in the
negative range at -EUR2.8 million (Q1-Q3 2012: +EUR0.8 million) due to the
preproduction costs of project activity and accelerated international
expansion. 25.2% of sales were achieved in Germany, 63.1% in the UK and
11.7% in other foreign countries - demonstrating the success of the
international expansion strategy. Projects that were already planned for Q3
in the UK have been delayed, partially due to the unclear general
conditions regarding the punitive tariffs on Chinese module imports, and as
a result sales in Q3 2013 were at EUR11.7 million and EBIT at -EUR0.7
million. Altogether, the S.A.G. Solarstrom Group succeeded in the first
nine months of 2013 in compensating for the massive market slump of over
50% in Europe to a large extent. Overall performance at EUR76.2 million
(Q1-Q3 2012: EUR86.1 million) was only 11.5% below the previous year's
period. The company is still expecting to achieve an installation and sales
volume of more than 117 MWp and a positive operating result in fiscal year
2013.
'The European market has, as expected, collapsed by more than 50%, due to
regulatory changes and the introduction of punitive tariffs and minimum
import prices on Chinese module imports', says Dr. Karl Kuhlmann, CEO of
S.A.G. Solarstrom AG. 'We therefore had to significantly accelerate our
international expansion, in order to develop future growth markets for our
Group. This has left its mark on our result and our balance sheet.' The
group period result was -EUR6.9 million, and taking into account the
discontinued operations in Partner Sales, -EUR8.1 million. 'However, we are
convinced that our aggressive expansion strategy has laid crucial
foundations for profiting from market growth at the end of the
consolidation phase'.
Although several projects planned for Q3 in the UK have been delayed,
S.A.G. Solarstrom AG is currently anticipating achieving its forecast, an
ambitious one under the present market conditions. 'We also implemented a
large part of our installation volume in Q4 last year', continues Kuhlmann,
'which is why we are confirming our forecast, particularly in view of our
current project pipeline and the advanced project situation.'
Plant Construction: Installation volume slightly above previous year's
level
Despite the massive market slump in Europe, the business area Plant
Construction succeeded in retaining a very stable installation volume. In
the first nine months of 2013, 44.4 MWp was installed, mainly in the UK and
Germany (Q1-Q3 2012: 42.8 MWp). Sales reached EUR56.0 million (Q1-Q3 2012:
EUR69.9 million) - this reflects the decrease in price for photovoltaic
systems following the drop in component prices during 2012 and the first
few months of 2013. At -EUR6.3 million (Q1-Q3 2012: -EUR3.3 million), EBIT
shows not only the usual, in some cases considerable preproduction costs of
project activity due to the size of the projects, but also the costs of
accelerated foreign expansion in new markets such as Latin America, Africa
and Turkey. Sales in Q3 were EUR4.5 million (Q3 2012: EUR44.9 million) and
EBIT -EUR2.6 million (Q3 2012: +EUR0.7 million). As projects in the UK were
delayed, the costs mentioned were only offset by low sales.
Partner Sales discontinued - Project Sales is being prepared for the market
S.A.G. Solarstrom AG discontinued the loss-making business area Partner
Sales in June 2013. With an installation volume of only 3 MWp from Q1 2013,
sales in the first nine months were EUR1.2 million (Q1-Q3 2012: EUR18.5
million), and EBIT added up to -EUR1.2 million (Q1-Q3 2012: -EUR0.4
million). Other significant costs of closure are not expected, and
depreciation on goodwill has already been taken into account for the
balance sheet at -EUR0.3 million. Although a higher sales volume in the
business area Partner Sales would have increased the installation and sales
volume, the margin would have been negative.
For the newly created business area Project Sales, which covers the
secondary market business with photovoltaic systems, power production
projects for own consumption and integrated energy projects, further
projects for the secondary market have already been identified and
negotiations initiated, which should lead to contributions to sales and
results by the end of 2013, according to current estimates.
Plant Operation and Services: stable revenue and increasing monitoring
figures
The business area Plant Operation and Services achieved sales of EUR13.3
million (Q1-Q3 2012: EUR14.1 million) in the first nine months of 2013. The
business area was thus very successful in extensively compensating the
massive market slump of over 50% in Europe, by which both the hardware
business and project-dependent services such as yield reports are affected
in Europe, through further expansion. Due to development costs and costs
for further internationalization, EBIT was EUR2.1 million (Q1-Q3 2012:
EUR2.3 million). With sales of EUR4.8 million (Q3 2012: EUR4.7 million) and
an EBIT of EUR0.7 million (Q3 2012: EUR0.7 million), Q3 2013 was above the
previous year's level. The number of systems monitored by meteocontrol GmbH
rose at September 30, 2013 to around 33,600 with a total output of 7.8 GWp
(September 30, 2012: around 29,500 systems, 5.9 GWp), and currently the
figure is around 34,000 systems with a total output of 8 GWp.
Power Production: Q3 2013 back to normal level
As a result of the extraordinarily long winter with little sunlight, sales
in the business area Power Production were 15% below the previous year's
period (Q1-Q3 2012: EUR6.2 million), at EUR5.2 million in the first nine
months of 2013. EBIT was EUR1.5 million due to linear depreciation (Q1-Q3
2012: EUR1.8 million). Q3 2013 contributed EUR2.3 million to sales (Q3
2012: EUR2.4 million) and an EBIT of EUR1.1 million (Q3 2012: EUR1.1
million) and was thus back to its usual level for Q3. The business area is
a guarantor of two-digit EBIT margins, even taking into account
fluctuations due to the weather.
Balance sheet shows costs of foreign expansion and preproduction costs of
project activity
At the key date of September 30, 2013 S.A.G. Solarstrom AG's balance sheet
continued to show a balance sheet total expanded by large-scale projects,
with a high working capital. The accumulated net loss at the key date also
affected the equity ratio, which was temporarily at 11.8%. Without impact
from large-scale projects and financing of the Group's own system park, the
equity ratio would have been a solid 29.4%. The current liabilities were
covered at September 30, 2013 at 117% by current assets. Despite the
preproduction costs of further project activity and the negative EBIT, the
operative cash flow was +EUR3.9 million in the first nine months of fiscal
year 2013 (Q1-Q3 2012: +EUR96.2 million, mainly due to the purchase price
payment for a large-scale project). In Q3 2013, a positive operative cash
flow in the amount of EUR2.8 million was achieved (Q3 2012: -EUR8.2
million).
Course set for 2014 - forecast for 2013 confirmed
Since Q2 2013, S.A.G. Solarstrom AG has driven its foreign expansion beyond
Europe at full speed and thus set the course for participating in the
market growth of these new markets in the medium term.
Despite the delays in projects in the UK and the adverse market conditions,
S.A.G. Solarstrom AG is currently anticipating that it will be able to
increase its installation and sales volume to over 117 MWp and achieve a
positive operating result, as planned.
About S.A.G. Solarstrom AG
S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN:
DE0007021008) of Freiburg i.Br., Germany, is a manufacturer-independent
provider of photovoltaic plants configured to customers' individual needs.
The Group constructs plants of all sizes both in Germany and abroad. S.A.G.
Solarstrom AG also produces solar energy at its own plants.
S.A.G. Solarstrom AG's service portfolio covers the entire life cycle of
photovoltaic plants, including forecast and energy services, yield reports,
and remote service and maintenance, as well as insurance and financing. The
Group thus offers a comprehensive value chain in photovoltaics, from yield
reports, planning, construction, operations, and monitoring to
optimization, repowering, and deconstruction.
S.A.G. Solarstrom AG was founded in 1998. Around 200 specialists work at
the four locations in Germany and the foreign subsidiaries.
S.A.G. Solarstrom AG is listed in the Prime Standard of the Frankfurt Stock
Exchange as well as according to the rules and standards M:access of the
Munich Stock Exchange.
Further information: www.solarstromag.com
Contact:
S.A.G. Solarstrom AG
Sasbacher Straße 5
79111 Freiburg
Germany
www.solarstromag.com
Public Relations / Investor Relations
Jutta Lorberg
phone: +49-(0)761-4770-311
e-mail: pr(at)solarstromag.com / ir(at)solarstromag.com
End of Corporate News
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Language: English
Company: S.A.G. Solarstrom AG
Sasbacher Str. 5
79111 Freiburg
Germany
Phone: + 49 761 4770 0
Fax: + 49 761 4770 555
E-mail: mail(at)solarstromag.com
Internet: www.solarstromag.com
ISIN: DE0007021008, DE000A1E84A4, DE000A1K0K53,
WKN: 702100, A1E84A, A1K0K5
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München
(m:access), Stuttgart
End of News DGAP News-Service
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