EUROPLASMA Press release | 2014 Half-Year Results | Bordeaux, 31 October 2014
Consolidated results at 30 June 2014Europlasma, the French company with a global reach that builds, designs and operates plasma solutions for renewable energy generation and hazardous waste recovery, today published its 2014 half-yearly consolidated financial statements as approved by the Board of Directors on
31 October 2014.
Commenting on the first-half results, CEO Jean-Eric Petit said:
"In the first half of 2014, Europlasma focused its efforts on implementing strategic, financial and operational measures to complete the Group's industrial recovery. These measures are not yet reflected in the figures for the first half, but they do mean that we can embark on the next stages in our development with renewed confidence. The huge success of our last capital increase and the €35.9 million raised mean that Europlasma now has the means necessary to realise its growth potential. We can look forward to the next few years with peace of mind, still with the same ambition of playing a key role in sustainable development and the energy transition."
30/06/2013 Difference
5,656 -902
-2,200 -3,080
-4,114 -3,332
-297 -256
-2,684 2,684
-7,358 -615
-6,014 -1,947
-0.38 0.01
Source: 2014 half-yearly consolidated financial statements approved by the Board of Directors on 31/10/2014
Activity and Revenue
Revenue in the first half of 2014 was down 16% compared with H1 2013: Torches & Processes and Hazardous
Waste both saw a decline in revenue; however revenue for the Renewable Energy sector rose.
Renewable Energy booked revenue of €1,109,000, compared with €692,000 at 30/06/2013, linked to progress on the performance of the EPC contract for the CHO Morcenx plant. Preliminary delivery took place on 13 June 2014 following the agreed performance tests.
Commercially, the development of new plant projects continued: in France, studies were carried out with a view to filing full licence applications for several projects during the second half of 2014. The Canadian developer Fourth State Energy has selected CHO Power technology for its plant projects, especially in Nova Scotia. A preliminary design was submitted to it in early 2014, while the detailed design is expected to follow shortly.
Hazardous Waste destruction was down 17% at 30/06/2014 compared with 30/06/2013, contributing
€3,584,000 to consolidated revenue. The volume of treated asbestos waste fell 26%, with 1,785 tonnes treated at 30/06/2014 versus 2,400 tonnes at 30/06/2013. Production in the first half of 2014 was affected by outages on torch rectifiers and by two scheduled shutdowns lasting around five weeks to upgrade the furnace, compared with just one in the first half of 2013.
In a tough economic climate, commercial activity slowed in terms of orders and deliveries (-10%). Conversely, a 33% increase in quotations was recorded, a sign of the interest among waste producers in a final treatment solution.
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Press release | 2014 Half-Year Results | Bordeaux, 31 October 2014
The Torches & Processes business generated revenue of €61,000, compared with €649,000 at
30/06/2013. H1 2013 revenue was mainly generated under the KNPP (Kozloduy Nuclear Power Plant)
contract, temporarily suspended at the customer's request in 2014.
A sales drive in recent months led to three studies being commissioned in the first half of 2014, underscoring the global interest in Europlasma technology in sectors as diverse as the steel industry, biofuel production and waste neutralisation.
Results
Operating loss in the first half of 2014 stood at -€7,446,000, versus -€4,114,000 at 30/06/2013. This was mainly due to operational expenses linked to the start-up in February 2014 and then the ramp-up of the CHO Morcenx plant and related tests: operating losses recorded by the Renewable Energy segment thus amounted to -€3,994,000, against -€2,342,000 at 30/06/2013.
The Hazardous Waste business, impacted by the lower volume of vitrified asbestos waste, recorded an operating loss of -€1,413,000, compared with -€653,000 at 30/06/2013.
The Holding Company, Torches & Processes segment, which bears all Group corporate costs, recorded an operating loss of -€2,015,000, against -€1,019,000 at 30/06/2013, due to the low turnover during the period
and the €593,000 impairment loss booked on the KIWI pilot.
Adjusting for financial income of -€553,000 and minority interests, the net loss came to -€7,961,000, compared with a loss of -€6,014,000 at 30 June 2013.
In thousands of euros (T€) | 30/06/2014 | 31/12/2013 Difference |
Non-current assets Current assets Consolidated equity - Group share Non-controlling interests Non-current financial liabilities Other non-current liabilities Current financial liabilities Other current liabilities Net debt Gearing Operating cash flows Net disinvestments/(Investments) Shareholders' equity - Group share, in euros per share | 29,981 13,666 -1,410 487 8,597 1,338 10,979 23,655 18,279 1.05 -5,126 -149 -0.07 | 31,597 -1,617 16,693 -3,027 2,374 -3,784 748 -260 15,935 -7,338 1,729 -391 1,810 9,169 25,694 -2,039 15,767 2,512 0.83 0.22 -4,282 -844 104 -254 0.15 -0.22 |
Source: 2014 half-yearly consolidated financial statements approved by the Board of Directors on 31 October 2014
The balance sheet total stood at €43,646,000, versus €48,290,000 at 31/12/2013, a decrease of €4,644,000.
For balance-sheet assets, this change is the result of a decrease in non-current assets of €1,617,000 (depreciation, amortisation and impairment of fixed assets for €2,203,000, higher than the asset purchases of
€932,000) and a decrease in current assets of €3,027,000 (affecting all items in view of the downtick in business) compared with 31/12/2013.
In balance-sheet liabilities, equity fell by €4,045,000 between 31/12/2013 and 30/06/2014 due to the loss for the period of -€7,974,000, partially offset by the capital increase in February 2014 for €4,146,000, premium included.
Group net debt amounted to €18,279,000 at 30/06/2014, versus net debt of €15,767,000 at 31/12/2013. This increase is mainly due to new short-term funding of €2.8m granted to the Group in April 2014.
Renewable energy
At Morcenx, the CHO Power plant reached nominal efficiency. Staff are currently working on implementing the action plan drawn up last June to increase plant capacity ahead of a final delivery of CHO Morcenx in the first quarter of 2015.
At the same time, CHO Power and its partner ENRgy are developing the CHO Tiper project in Thouars
(Deux-Sèvres), based on the same technical and economic model as the CHO Morcenx plant. The special
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Press release | 2014 Half-Year Results | Bordeaux, 31 October 2014
purpose vehicle CHO Tiper SAS, owned equally by CHO Power and ENRgy, was set up and licence applications filed with the prefecture in early October 2014.
In parallel, CHO Power is continuing its sales and marketing efforts. The technology developed by CHO Power has sparked considerable interest among French, European and international players. Qualified business contacts and delegations of various origins have already visited the Morcenx site, the first step
towards commercial negotiations.
Hazardous waste
The Group is currently finalising the optimisation plan for its asbestos waste vitrification plant, with an investment expected to be in the region of €1m. With an upgraded furnace combined with powerful
auxiliaries, 2015 could be the year when nominal production capacity is reached.
The Group intends to base the development of this activity on its know-how: Inertam is the only facility in the world for the destruction and recovery of asbestos waste, in a market that still enjoys a favourable regulatory environment.
Studies and Engineering, Torches and Processes
The efforts made by Europlasma in terms of communication and marketing, which have already led to three studies being commissioned during the first half of 2014, continue to bear fruit, with a new study commissioned for the steel industry.
Europlasma is actively targeting the nuclear waste market with a short-term goal of launching two separate
projects in Europe. In Asia and North America, new business development is picking up and could lead to new contracts being signed sometime in 2015.
Press and Investors contacts
EUROPLASMA
Jean-Eric PETIT - Chief Executive Officer Estelle MOTHAY - Chief Financial Officer Anne BORDERES - Communication Manager Tel: + 33 (0) 556 497 000 contactbourse@europlasma.com
CAPVALUE Samuel BEAUPAIN - Relations presse - 01 80 81 50 05 - sbeaupain@capvalue.fr
Important notice
This release contains provisional information and statements based on the best estimates of the Management at the date of their publication. This information is, by nature, subject to risks and uncertainties which are difficult to predict and generally outside of the Group's field of action. These risks include the risks listed in the Group's reference document available on its website http://www.europlasma.com.
Consequently, the future performance of the Group may differ significantly from the provisional data communicated and the
Group can make no commitment to the achievement of these provisional elements.
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APPENDICES1. GL OSS ARY
CHO Morcenx : Simplify joint-stock company (Société par Actions Simplifiée), owner of the waste and biomass-to-energy power plant in Morcenx (France), 25% owned by Europlasma Group, through its sub CHO Power.
EBITDA : This is the net consolidated revenue, including companies' fiscal expenses, net financial expenses and net appropriations to depreciation and provisions.
EPC : Engineering, Procurement and Construction contract. This is a contract of engineering, suplly and construction.
Gearing : Net debt / (net debt + equity ratio)
KIWI : Kobelco Eco Solution (KES) Industrial CHO PoWer GasIfication is a R&D program that aims to test the combination of a new type of gasifier developed by KES and the Turboplasma ® (syngas cleaning process by plasma) developed by Europlasma, for the production of energy form waste and biomass.
KNPP : Kozloduy Nuclear Power Plant is a contact for the supply of a plasma furnace to reduce and immobilize radioactive waste in Bulgaria.
Net debt : Financial debt less liquid assets and short term investment securities.
O&M : Operations and Maintenance Contract.
Take Over Date : provisional technical delivery of the power plant in Morcenx within the EPC contract.
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2. SEGMENT INFORMATION30/06/2014
Holding Company, R&D, Engineering and
Torches
Hazardous waste
Renewable
Energies
Air and Gas Total
Goodwill 0 2,615 0 8 2,624
Other intangible assets 927 29 335 0 1,292
Property, plant and equipment 9,384 5,092 68 0 14,544
Other non-current assets 1,264 735 8,946 576 11,521
Cash and cash equivalent 820 207 125 144 1,297
Total assets 15,127 12,113 15,362 1,044 43,646
Financial liabilities 10,357 2,711 6,507 0 19,576
Revenue 61 3,584 1,109 0 4,754
Operating income -2,015 -1,413 -3,994 -23 -7,446
EBITDA -940 -186 -4,131 -23 -5,280
Net increase in depreciation, amortisation, and impairment -1,075 -1,228 100 0 -2,203
31/12/2013
Holding Company, R&D, Engineering and
Torches
Hazardous waste
Renewable
Energies
Air and Gas Total
Goodwill 0 2,615 0 8 2,624
Other intangible assets 920 21 497 0 1,438
Property, plant and equipment 10,336 5,530 71 0 15,937
Other non-current assets 1,288 732 9,003 576 11,599
Cash and cash equivalent 311 880 742 45 1,978
Total assets 16,512 13,739 16,326 1,713 48,290
Financial liabilities 7,386 2,698 7,661 0 17,746
Revenue 1,613 9,175 1,784 0 12,572
Operating income -1,950 -767 -6,402 -17 -9,135
EBITDA -441 1,545 -6,331 -113 -5,341
Net increase in depreciation, amortisation, and impairment -1,509 -2,311 -422 96 -4,146
30/06/2013
Holding Company, R&D, Engineering and
Torches
Hazardous waste
Renewable
Energies
Air and Gas Total
Goodwill 0 2,615 0 0 2,615
Other intangible assets 695 17 649 0 1,361
Property, plant and equipment 10,988 4,931 2 0 15,920
Other non-current assets 1,290 737 9,246 0 11,273
Cash and cash equivalent 233 309 2 0 545
Total assets* 16,976 13,925 16,466 20,325 67,692
Financial liabilities 9,464 2,686 1,097 0 13,247
Revenue 649 4,315 692 0 5,656
Operating income -1,119 -653 -2,342 0 -4,114
EBITDA -486 585 -2,299 0 -2,200
Net increase in depreciation, amortisation, and impairment -633 -1,238 -279 0 -2,150
* The distribution of total assets by sector has been revised since the segment information disclosed in the 2013 half‐yearly financial statements.
Source: 2014 half-yearly consolidated financial statements approved by the Board of Directors on 31/10/2014
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