This first-half activity report is a "narrative report", and complies with the Transparency Directive.
1. Significant events in the first half of 2007
The Theolia group saw strong business growth in the first half of 2007, mainly due to the arrival of Natenco within the group. At 30 June 2007, several wind farms with total capacity of 146 MW were under construction.
Mid-way through the year, the group has secured the sale of 96 MW of its 150 MW sales target for the year. With traditional strong seasonal business levels in the second half of the year, Theolia could envisage exceeding this target.
Full-year revenues are expected to show very strong growth.
In addition, there will be revenues from the various wind farms acquired from General Electric Energy Financial Services, which represent installed capacity of 165 MW.
- Partnership with General Electric Energy Financial Services (GE EFS)
In February, Theolia and GE EFS, the General Electric group's vehicle for investing in the energy sector, reached a strategic partnership agreement. Theolia acquired GE EFS' European wind farms, which have total installed capacity of 165 MW. As consideration, GE EFS received 5,250,000 new Theolia shares. GE EFS also supported Theolia's rapid growth through a reserved capital increase, buying 1,212,000 new shares for ¤20m. As a result, GE EFS owned a 17.03% stake in Theolia at 2 July 2007.
GE EFS will be able to acquire an additional 3,000,000 Theolia by exercising its warrants.
The closing of the transaction took place on 2 July 2007.
- Thenergo's listing on Alternext
The Theolia Benelux sub-group was renamed Thenergo, and combines the group's non-wind activities.
Thenergo was listed on Alternext on 14 June 2007, and as part of the operation a ¤65m reserved capital increase was carried out. This reduced Theolia's stake from 91.01% to 35.20% (before the purchase of the Environment business).
2. Revenues in the first half of 2007
Presentation by business line
|in thousands of euros||Third-party construction and sales||Electricity from wind power||Non-wind power activities||Consolidated total|
|First quarter 2007||119||13,884||3,147||17,149|
|First quarter 2006||0||39||422||461|
|Second quarter 2007||15,938||8,402||4,798||29,138|
|Second quarter 2006||0||1,433||548||1,981|
|Consolidated total, first-half 2007||16,057||22,285||7,945||46,287|
- Third-party construction and sales: ¤16.057m
The construction and sale of wind farms saw strong growth in the second quarter of 2007, due in particular to sales by Natenco GmbH in Germany.
Revenues totalled ¤16m, relating to the sale of several wind farms with total capacity of 9.5 MW.
As per 30 June 2007, Theolia was building several wind farms at various stages of completion with a total capacity of 146 MW. No revenue was generated from these activities.
- Electricity from wind power: ¤22.285m
This business includes the generation of electricity from the company's own wind farms and wind farms managed for third parties.
On an equivalent-capacity basis, the variation in electricity from wind power revenues between the first and second quarters of 2007 was due to normal seasonal variations in production.
Second-half 2007 production levels will be boosted by the wind farms acquired from GE EFS in July 2007 (165 MW) as part of its strategic partnership with Theolia.
- Non-wind power activities ¤7.945m
This business line covers the generation of electricity from non-wind sources. These activities have now been grouped within Thenergo. When Thenergo was listed on Alternext Paris, Theolia's stake in Thenergo was reduced from 91% to 35%. Until that date, Thenergo's revenues were fully consolidated in Theolia's financial statements. Since then, Thenergo has been accounted for as an equity affiliate, and so no longer contributes to Theolia's revenues.
All Theolia's non-wind power activities in France will also be transferred to Thenergo. In accordance with IFRS 5, Thenergo's assets, liabilities and income statement items are presented on single lines of the balance sheet (assets and liabilities sides) and income statement. Thenergo's revenues no longer appear under Theolia's revenues, but contribute to earnings under the "net profit/loss from divested businesses" item. Figures for the first quarters of 2006 and 2007 and the second quarter of 2006 have been adjusted to ensure that the figures are comparable.
Presentation by geographical zone
|in thousands of euros||France||Germany||Rest of the
|First quarter 2007||1,780||12,223||3,147||17,149|
|First quarter 2006||461||0||0||461|
|Second quarter 2007||1,873||23,287||3,978||29,138|
|Second quarter 2006||1,433||0||548||1 981|
|Consolidated total, first-half 2007||3,653||35,509||7,125||46,287|
Revenues in France and Germany resulted solely from wind power activities.
Revenues in the rest of the world came from Thenergo's non-wind power activities until the second quarter of 2007.
3. 2007 outlook
Signature of an agreement relating to an Italian acquisition
On 29 June 2007, Theolia signed an agreement to acquire an Italian developer. Subject to ongoing due diligence, Theolia will acquire a 21 MW wind farm under construction, expected to come into service by the end of 2007, along with several projects with total capacity of 75 MW that should be authorised very soon and more than 220 MW of projects under development. All projects are located in Italy. The acquisition will also bolster Theolia's workforce in Europe with the addition of 7 staff.
Signature of an agreement relating to a Dutch acquisition
On 29 June 2007, Theolia signed an agreement to acquire a Dutch company that owns wind- and solar-power projects:
- Wind: 220 MW under development
- Solar: 1.6 MW of permits obtained
- Wind: 7.2 MW coming into service by the end of 2007 and 87 MW under development
- Solar: 0.6 MW of permits obtained + 2 MW under development
- Wind power in Namibia: 92 MW under construction. Work should begin in the third quarter of 2007. This project benefits from various grants and revenues from the sale of carbon credits. This project will be transferred to the Theolia Emerging Markets subsidiary.
Creation of Theolia Emerging Markets
On 1 June 2007, Theolia received a letter of intent from an international financial institution with a view to buying a stake in a company to be called Theolia Emerging Markets. This company will operate exclusively in emerging-market countries.
Theolia will own 51% of this new entity and the international financial institution 17% (subject to due diligence currently underway). The remainder will be owned by industrial companies and/or financial institutions.
Theolia Emerging Markets will have six wholly-owned subsidiaries:
- Theolia Wind Power Pvt Ltd (India)
- Theolia CEE (Central and Eastern Europe)
- Theolia Do Brasil (Brazil)
- Theolia Morocco
- Theolia Namibie (Namibia)
- Theolia Afrique du Sud (South Africa)
Theolia Emerging Markets aims to have installed capacity of 600 MW by 2011.
Several transactions are currently at the negotiation stage and should be completed by the end of 2007.
For more information: www.theolia.com
Tel : +33 (0)4 42 904 904
Société anonyme à Conseil d'Administration. Registered capital 38 235 117 ¤
Head office: Parc de la Duranne - 860 rue René Descartes
Les Pléiades Bât F - 13795 Aix en Provence cedex 3
Tél : + 33 (0)4 42 904 904 - Fax : + 33 (0)4 42 904 905 - www.theolia.com
THEOLIA is listed on Eurolist B, Euronext Paris, code: TEO © Copyright Actusnews Wire
Recevez gratuitement par email les prochains communiqués de la société en vous inscrivant sur www.actusnews.com
Receive by email the next press releases of the company by registering on www.actusnews.com, it's free