- Revenues and Other Income up 89%
- Pipeline up 130% with more than $130 million of contracts
secured
- Launch of the largest V2G pilot project in the world up to 25MW
and 700 EVs together with FCA and Terna
- The distribution of the easyWallbox started in 19 European
countries for Jeep 4xe and Fiat 500e, and production is ramping up
towards the target of 50,000 units per year
- ENGIE EPS acknowledges the decision of the ENGIE Group to
assess strategic options for ENGIE EPS, including the possible
divestment of its stake in the Company. The three major energy
storage projects in the USA, Guam (300MWh), Hawaii (240MWh) and New
England (50MWh), will continue to be developed jointly by both
companies. Should ENGIE decide to divest its stake following its
strategic review, ENGIE has reaffirmed its continuous financial
support until a potential transaction is closed. For the future,
both companies will continue jointly developing projects which are
deemed mutually beneficial.
Regulatory News:
ENGIE EPS (Paris:EPS):
2020 FIRST HALF KEY FIGURES
Revenues and Other Income amount to €5.0 million as of 30
June 2020, up 89% compared to 2019 First Half. This quasi 2x growth
is mainly due to the successful developments within the Giga
Storage (utility-scale storage and solar-plus-storage projects) and
Industrial Solutions (microgrids and storage systems) Product
Lines. Worth highlighting are, respectively, the progress in the
construction of the Sol De Insurgentes solar-plus-storage project
in Mexico, with commissioning expected in early 2021, the storage
solution for the Leini power plant and the microgrids in California
and Comoros, all three projects with expected commissioning by
year-end. Construction schedules were partly affected by Covid-19
related logistic restrictions.
On the other hand, the Project Backlog as of today
amounts to €23.8 million, down 30% compared to the Project Backlog
communicated on 30 September 2019, due to progress in project
execution. The timing of conversion into Backlog of the most mature
portion of the Pipeline (with over $130 million of contracts
secured but not yet executed due to customary permitting procedures
and conditions precedent, as well as in the case of Guam the
ongoing appeal) was partly affected by the situation relating to
Covid-19.
Pipeline is up 130% over the same period, reaching €806
million. This Pipeline includes the project in Guam where ENGIE has
been selected as successful bidder* for the construction of two
Solar-plus-300MWh Storage projects under a 20-year power purchase
agreement by the Power Authority of Guam (GPA) and where ENGIE EPS
is the exclusive storage solution provider. It also includes the
240MWh project in Hawaii where ENGIE has been selected in the final
award list for the construction of one solar-plus-storage project
under a 25-year power purchase agreement by Hawaii Electric Co.
Furthermore, it includes a newly secured 50MWh project in New
England.
Gross margin stands at 27% compared to 40% in 2019,
mainly due to the higher commodity content of the iconic project in
Mexico brought by ENGIE, which accounts for more than 51% of the
First Half 2020 revenues.
Personnel costs increased by 19% reaching €3.7 million
compared to €3.1 million in First Half 2019. Today ENGIE EPS has
110 employees, from 15 nationalities, 1/4 of which with a PhD or
other post-graduate degree. The strengthening of the workforce is
in line with its roadmap and mainly devoted to the execution of the
projects in the USA.
R&D investments amounted to €1.9 million compared to
€1.2 million in First Half 2019 and represent 38% of the
consolidated revenues and other income, confirming the strong
commitment towards R&D and innovation which is progressively
addressed also towards the eMobility Product Line.
Other Operating Expenses increased by 36% amounting to
€1.4 million, compared to €1 million in the first semester 2019,
mainly because of time-phasing budget and extraordinary Covid-19
expenses.
EBITDA represents €4.4 million loss in the first semester
2020 compared to a €3.4 million loss in the first semester 2019,
due to lower gross margins in Giga Storage Product Line, the
increase in operating expenses and the extraordinary costs due to
Covid-19, which more than offset the increase in revenues.
EBIT and Net Result as at 30 June 2020 stands,
respectively, at €-6.5 million and €-6.5 million compared with
€-6.7 million and €-6.2 for the previous year.
Net Financial Position at the end of the first semester
2020 decreased to €-17.8 million compared to €-8.1 million on 31
December 2019.
BACKLOG AND PIPELINE UPDATE
As update of the Pipeline and the Project Backlog, it is worth
highlighting in the:
- Giga Storage Product Line, with the ENGIE project award
in Hawaii and Guam, as well as a new contract secured in New
England, ENGIE EPS secured contracts for more than $130 million and
over 500MWh to be online by 2023. With specific reference to the
flagship project the island of Guam, the Guam’s Public Auditor is
expected to issue within days its decision on the challenge brought
by a competing bidder against the award to ENGIE of the Phase III
Renewable Energy Project. ENGIE EPS is confident in a favorable
decision, clearing the path for the project to approach execution.
In Hawaii, following the selection of ENGIE in the final award
group for the Stage 2 Variable Renewable Dispatchable Generation
and Energy Storage projects, customary procedures are ongoing with
respect to the finalization and approval of project documentation,
in line with the announced timetable.
- Industrial Solutions Product Line, ENGIE EPS is
completing its first microgrid in California and is well positioned
to address the increased grid reliability challenges in the
region.
- eMobility Product Line, ENGIE EPS kicked off delivery of
the easyWallbox, setting the production capacity up to 50,000 units
in the next 18 months, to cover 19 countries in Europe; the largest
V2G pilot project in the world finally came to light on 14
September 2020, in partnership with FCA and Terna and in the
presence of the EU Commissioner for Energy and the Italian Minister
for Economic Development to highlight the importance of the project
and the V2G technology in the European technology landscape.
Concerning the decision of the ENGIE Group to assess strategic
options for ENGIE EPS, including the possible divestment of its
stake in the Company, ENGIE has reaffirmed that the three major
energy storage projects in the USA, representing more than $130
million in revenues in the coming years, will continue to be
developed jointly by both companies. For the future, both companies
will continue jointly developing projects which are deemed mutually
beneficial.
Should ENGIE decide to divest its stake following its strategic
review, ENGIE has reaffirmed its continuous financial support until
a potential transaction is closed.
ENGIE EPS will continue to build on its know-how and commercial
successes achieved over the last few years outside and within the
ENGIE Group, and to continue to be a leading player in the Energy
Storage and Electric Mobility markets.
*** *** ***
The investor conference call is scheduled on 25 September 2020
at 8:00am, dial-in and the presentation will be available in the
Investors Section of the corporate website.
*** *** ***
* Under Challenge
About ENGIE EPS
ENGIE EPS is an industrial player within the ENGIE group that
develops technologies to revolutionize the paradigm shift in the
global energy system towards renewable energy sources and electric
mobility. Listed on Euronext Paris (EPS:FP), ENGIE EPS is listed in
the CAC® Mid & Small and the CAC® All-Tradable financial
indices. Its registered office is in Paris and conducts its
research, development and manufacturing in Italy.
For more information: 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 170,000 employees, our customers, partners and
stakeholders, we are a community of Imaginative Builders, committed
every day to more harmonious progress. Turnover in 2019: EUR 60.1
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).
Forward looking statement
This release may contain forward-looking statements. These
statements are not undertakings as to the future performance of
ENGIE EPS. Although ENGIE EPS considers that such statements are
based on reasonable expectations and assumptions at the date of
publication of this release, they are by their nature subject to
risks and uncertainties which could cause actual performance to
differ from those indicated or implied in such statements. These
risks and uncertainties include without limitation those explained
or identified in the public documents filed by ENGIE EPS with the
French Financial Markets Authority (AMF), including those listed in
the “Risk Factors” section of the ENGIE EPS (ex EPS) Registration
Document filed with the AMF on 30 April 2020 (under number D.
20-0439). Investors and ENGIE EPS shareholders should note that if
some or all of these risks are realized they may have a significant
unfavorable impact on ENGIE EPS. These forward looking statements
can be identified by the use of forward looking terminology,
including the verbs or terms “anticipates”, “believes”,
“estimates”, “expects”, “intends”, “may”, “plans”, “build- up”,
“under discussion” or “potential customer”, “should” or “will”,
“projects”, “backlog” or “pipeline” or, in each case, their
negative or other variations or comparable terminology, or by
discussions of strategy, plans, objectives, goals, future events or
intentions. These forward-looking statements include all matters
that are not historical facts. They appear throughout this
announcement and include, but are not limited to, statements
regarding the ENGIE EPS’ intentions, beliefs or current
expectations concerning, among other things, the ENGIE EPS’ results
of business development, operations, financial position, prospects,
financing strategies, expectations for product design and
development, regulatory applications and approvals, reimbursement
arrangements, costs of sales and market penetration. In addition,
even if the ENGIE EPS’ results of operations, financial position
and growth, and the development of the markets and the industry in
which ENGIE EPS operates, are consistent with the forward-looking
statements contained in this announcement, those results or
developments may not be indicative of results or developments in
subsequent periods. The forward-looking statements herein speak
only at the date of this announcement. ENGIE EPS does not have the
obligation and undertakes no obligation to update or revise any of
the forward-looking statements.
1.1 Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT (amounts
in Euro)
30/06/2020
31/12/2019
30/06/2019
Revenues
4.914.240
19.684.041
2.626.522
Other Income
111.887
520.770
32.607
TOTAL REVENUES AND OTHER INCOME
5.026.127
20.204.810
2.659.129
Cost of goods sold
(3.690.491)
(14.857.163)
(1.592.391)
GROSS MARGIN FROM SALES
1.335.635,53
5.347.646,92
1.066.737,65
% on Revenues and Other Income
26,6%
26,5%
40,6%
Personnel costs
(3.703.950)
(6.667.126)
(3.099.999)
Other operating expenses
(1.406.757)
(2.316.539)
(1.031.840)
Other costs for R&D and industrial
operations
(610.141)
(2.094.303)
(288.288)
EBITDA excluding Stock Option and
Incentive Plans expenses (1)
(4.385.212)
(5.730.321)
(3.353.390)
Amortization and depreciation
(1.291.930)
(2.985.304)
(1.487.957)
Impairment and write down
(196.061)
(3.592.049)
(419.686)
Non recurring income and expenses and
Integration costs
(142.226)
(1.573.472)
(782.727)
Stock options and Incentive plans
(513.025)
(1.206.490)
(702.486)
EBIT
(6.528.455)
(15.087.635)
(6.746.245)
Net financial income and expenses
39.481
(312.219)
(165.573)
Income Taxes
(31.291)
755.570
758.275
NET INCOME (LOSS)
(6.520.264)
(14.644.285)
(6.153.543)
Attributable to:
Equity holders of the parent company
(6.520.264)
(14.644.285)
(6.153.543)
Non-controlling interests
0
0
0
Basic earnings per share
(0,51)
(1,15)
(0,48)
Weighted average number of ordinary shares
outstanding
12.766.860
12.766.860
12.766.860
Diluted earnings per share
(0,51)
(1,15)
(0,48)
(1) EBITDA excluding Stock Option and
Incentive Plans expenses is not defined by IFRS. It is defined in
notes 3.8 and 4.6 of Consolidated Financial Statement.
1.2 Consolidated Statement of Other Comprehensive
Income
OTHER COMPREHENSIVE INCOME (amounts in
Euro)
30/06/2020
31/12/2019
30/06/2019
NET INCOME (LOSS)
(6.520.264)
(14.644.285)
(6.153.543)
Exchange differences on translation of
foreign operations and other differences
(2.739)
(4.517)
(4.437)
Other comprehensive income not to be
reclassified to profit or loss in subsequent periods (net of
tax)
7.714
0
0
Actuarial gain and (losses) on employee
benefits
(64.945)
(123.021)
(106.488)
Other comprehensive income (loss) for the
year, net of tax
(59.970)
(127.538)
(110.924)
Total comprehensive income for the year,
net of tax
(6.580.235)
(14.771.823)
(6.264.467)
Attributable to Equity holders of the
parent company
(6.580.235)
(14.771.823)
(6.264.467)
1.3 Consolidated Balance Sheet
ASSETS (amounts in Euro)
30/06/2020
31/12/2019
30/06/2019
Property, plant and equipment
2.860.550
3.097.589
3.238.849
Intangible assets
8.120.705
6.979.216
7.988.719
Investments in entities accounted using
the equity method
996
996
996
Other non current financial assets
168.346
143.346
143.227
TOTAL NON CURRENT ASSETS
11.150.597
10.221.147
11.371.792
Trade and other receivables
4.068.586
9.928.244
4.638.298
Contract assets
7.226.231
9.148.945
4.217.618
Inventories
3.218.163
2.985.948
3.153.814
Other current assets
3.266.872
4.680.548
3.181.856
Current financial assets
459.219
428.201
435.500
Cash and cash equivalent
3.773.701
6.431.376
4.423.931
TOTAL CURRENT ASSETS
22.012.772
33.603.262
20.051.017
TOTAL ASSETS
33.163.369
43.824.409
31.422.809
EQUITY AND LIABILITIES (amounts in
Euro)
30/06/2020
31/12/2019
30/06/2019
Issued capital
2.553.372
2.553.372
2.553.372
Share premium
48.147.696
48.147.696
48.147.696
Other Reserves
4.529.648
4.586.787
4.603.320
Retained Earnings
(52.953.882)
(38.306.765)
(38.298.766)
Profit (Loss) for the period
(6.520.264)
(14.644.285)
(6.153.543)
TOTAL EQUITY
(4.243.431)
2.336.804
10.852.078
Severance indemnity reserve and Employees'
benefits
4.819.075
4.825.619
5.047.361
Non current financial liabilities
20.254.905
13.254.905
4.704.560
Other non current liabilities
1.998.478
1.631.591
1.619.796
Non current deferred tax liabilities
16.494
16.494
16.494
TOTAL NON CURRENT LIABILITIES
27.088.952
19.728.609
11.388.211
Trade payables
5.370.248
15.962.964
4.310.379
Other current liabilities
3.664.869
4.518.758
3.149.166
Current financial liabilities
1.271.175
1.277.274
1.722.975
Income tax payable
11.556
0
0
TOTAL CURRENT LIABILITIES
10.317.848
21.758.996
9.182.519
TOTAL EQUITY AND LIABILITIES
33.163.369
43.824.409
31.422.809
1.4 Consolidated Statement of Changes in Equity
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY (amounts in Euro)
Share Capital
Premium Reserve
Stock Option and Warrants plan
reserve
Other Reserves
Retained Earnings
(Losses)
Profit (Loss) for the
period
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
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)
-
Stock option and warrants
(181.831)
(181.831)
(181.831)
Shareholder's capital increase
-
-
Other movements
(696.054)
(12.841)
708.895
(1)
(1)
Loss for the period
(6.153.543)
(6.153.543)
(6.153.543)
Total comprehensive income
-
-
(106.488)
(4.437)
-
(127.538)
-
(110.926)
Net Equity as of 30 June 2019
2.553.372
48.147.696
4.969.291
(365.971)
(38.298.844)
(6.153.543)
10.852.078
-
10.852.078
Previous year result allocation
6.153.543
6.153.543
6.153.543
Stock option and warrants
-
-
Shareholder's capital increase
-
-
Other movements
(7.998)
(7.998)
(7.998)
Loss for the period
(14.644.285)
(14.644.285)
(14.644.285)
Total comprehensive income
-
-
(16.533)
(80)
-
(16.614)
-
(16.614)
Net Equity as of 31 December
2019
2.553.372
48.147.696
4.969.291
(382.492)
(38.306.857)
(14.644.285)
2.336.726
-
2.336.726
Previous year result allocation
(14.644.285)
14.644.285
-
-
Stock option and warrants
-
-
Shareholder's capital increase
-
-
Loss for the period
(6.520.264)
(6.520.264)
(6.520.264)
Total comprehensive income
-
-
(57.152)
(2.739)
-
(59.891)
-
(59.891)
Net Equity as of 30 June 2020
2.553.372
48.147.696
4.969.291
(439.644)
(52.953.882)
(6.520.264)
(4.243.431)
-
(4.243.431)
1.5 Consolidated Statement of Cash Flows
CASH FLOW STATEMENT (amounts in
Euro)
30/06/2020
31/12/2019
30/06/2019
Net Income or Loss
(6.520.264)
(14.644.285)
(6.153.543)
Amortisation and depreciation
1.291.930
2.985.304
1.487.957
Impairment and write down
196.061
3.592.049
419.686
Stock option and incentive plans
impact
513.025
1.206.489
702.486
Defined Benefit Plan
(6.544)
599.379
319.914
Non-cash variation in bank debts
0
528.048
0
Working capital adjustments
Decrease (increase) in tax assets
(790.475)
221
(318.851)
Decrease (increase) in trade and other
receivables and prepayments
9.140.030
(13.689.123)
(1.976.338)
Decrease (increase) in inventories
(232.215)
66.905
(100.961)
Increase (decrease) in trade and other
payables
(11.631.110)
6.925.288
(1.203.826)
Increase (decrease) in SARs Liability
0
0
(289.110)
Increase (decrease) in non current assets
and liabilities
584.369
107.590
113.925
Net cash flows from operating
activities
(7.455.193)
(12.322.135)
(6.998.662)
Investments
Net Decrease (Increase) in intangible
assets
(1.995.160)
433.625
(1.174.207)
Net Decrease (Increase) in tangible
assets
(53.117)
(276.528)
(208.878)
Net Decrease (Increase) due to IFRS 16
FTA
0
(2.175.922)
(2.051.318)
Net cash flows from investments
activities
(2.048.277)
(2.018.826)
(3.434.402)
Financing
Increase (decrease) in bank debts
6.993.903
9.953.268
3.996.468
IFRS 16 Impact
(148.104)
(41.460)
Net cash flows from financing
activities
6.845.799
9.911.808
3.996.468
Net cash and cash equivalent at the
beginning of the period
6.431.375
10.860.527
10.860.527
NET CASH FLOW FOR THE PERIOD
(2.657.670)
(4.429.153)
(6.436.596)
NET CASH AND CASH EQUIVALENTS AT THE
END OF THE PERIOD
3.773.704
6.431.375
4.423.931
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