S.A.G. Solarstrom AG: positive Q2 2012 despite difficult market environment
- Sales in Q2 2012 +50% compared with Q1 2012 at €31.9 million - EBIT in Q2 €0.9 million - Significant increase in Service Business and Power Production
Freiburg, August 9, 2012. Despite the very challenging market environment in Q2 2012, S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN: DE0007021008) has achieved a leap in sales of almost 50% compared with Q1 2012, to €31.9 million (Q1 2012: €21.4 million) and a positive EBIT of €0.9 million (Q1 2012: -€2.8 million). The cumulative figure for sales in the first six months was €53.3 million (first half of 2011: €137.9 million) and EBIT was -€1.9 million first half of 2011: €8.2 million). The operative deficit of the first quarter of the year was thus considerably reduced at the half-year. The previous year's period was still substantially influenced by the large-scale Serenissima project. The business areas Plant Operation and Services, as well as Power Production also delivered reliable, high-margin revenue in Q2 2012 and were thus able to compensate for the market-related fluctuations and preproduction costs in the area of Project Planning and Plant Construction. Despite the very difficult general conditions, S.A.G. Solarstrom AG is anticipating that the MWp sales volume in 2012 will continue to rise (2011: 100 MWp) and that a positive operating result will be achieved.
"The banking and financial crisis, the abrupt changes in the regulatory general conditions in Europe and the price decline on the market for components presented us with major challenges in the first half-year. The Q2 result, which was very positive in view of the market situation, once again emphasizes the stability of the S.A.G. Solarstrom Group and shows that we have reacted quickly to these market challenges", says Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG. "We will now implement competitive photovoltaic projects without a guaranteed feed-in tariff somewhat earlier than planned".
Sales volume tripled for small and medium-sized systems
The business area Project Planning and Plant Construction achieved sales of €16.3 million in Q2 (Q1 2012: €8.7 million) and an EBIT of -€0.7 million (Q1 2012: -€3.2 million) and was thus able to substantially reduce the operative deficit in comparison with the first quarter of the year. Total sales in the first half of 2012 were €25 million (first half of 2011: €110.8 million) and EBIT was -€3.9 million (first half of 2011: €5.9 million). The long period of uncertainty with regard to the regulatory changes in Germany and Italy, as well as the intensifying banking and financial crisis made the implementation of large-scale projects in the first half of 2012 considerably more difficult. Although the business area almost tripled the MWp sales volume of smaller and medium-sized systems (without Serenissima) in comparison with the first half of 2011, it could not completely compensate for the preproduction costs of larger projects.
Partner Sales increases sales volume by 50 %
In Q2, the business area Partner Sales achieved sales of €8.3 million (Q1 2012: €6.8 million) and an EBIT of €0.2 million (Q1 2012: -€0.4 million). In the first half of the year, sales were slightly below the previous year's period at €15.1 million (first half of 2011: €16.9 million), but the above average decline in the market prices need to be taken into consideration here. The business area Partner Sales succeeded in massively increasing the sales volume in comparison with the first half of 2011 by 50%, so that a heavier drop in sales could be prevented. The persistently high level of pressure from competition in the first half-year in the business area Partner Sales was reflected in the EBIT at -€0.2 million(first half of 2011: €0.5 million).
Plant Operation and Services increases sales and result significantly
The business area Plant Operation and Services benefited positively from the high amount of new installations of photovoltaic systems and the correspondingly higher demand for monitoring and forecast services. The number of systems monitored by meteocontrol GmbH rose to around 27,000 systems with a total output of almost 5.6 GWp by the end of the first half-year. At the end of December 2011, it was only 23,600 systems with 4.2 GWp. Sales increased in comparison with the first half of 2011 by 40%, from €6.7 million to €9.4 million, with Q2 2012 at €4.9 million lying only slightly higher than Q1 2012 at €4.5 million. EBIT in the first half-year was €1.6 million (first half of 2011: €1.1 million) and was thus as much as 43% above the operating result of the previous year's period. Both quarters contributed a similar portion to the EBIT, at almost €0.8 million.
Power Production with reliable revenue
Sales in the business area Power Production increased slightly in comparison with the previous year's period to €3.8 million (first half of 2011: €3.5 million). In 2011 the Group extended its own power plant portfolio by a 5.1 MWp ground-mounted system in Kamenicna, Czech Republic, and an almost 1 MWp rooftop system in Dortmund. EBIT remained at the previous year's level at almost €0.7 million (first half of 2011: €0.7 million). Due to seasonal effects, Q2 contributed the largest portion of the half-year result to this business area, with sales of €2.4 million and an EBIT of €0.6 million.
Balance sheet total and debt further reduced
The consolidated period result of -€5.1 million (first half of 2011: €3 million) was negatively impacted by the financial result of -€4.6 million (first half of 2011: -€4.1 million), in which prefunding costs for further project activity and expenditure for the second corporate bond issued in June 2011 had an impact, as did the financing costs for the large-scale Serenissima project, up to the completion of sale of the project on March 30, 2012.
Despite the negative EBIT for the reporting period, in the first half of 2012, S.A.G. Solarstrom AG achieved a cash flow from operations in the amount of €104.4 million (first half of 2011: €14 million) and was thus able to further reduce both the balance sheet total and debt by June 30, 2012.
Despite the very challenging market environment, S.A.G. Solarstrom AG confirms the year's forecast to further increase MWp sales volume in 2012 (2011: 100 MWp) and to achieve a positive operating result.
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 high-quality photovoltaic plants configured to customers' individual needs. The Group constructs efficient 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.
Founded in 1998, S.A.G. Solarstrom AG is considered a pioneer in the solar industry. Around 210 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 m:access rules and standards of the Munich Stock Exchange.
Further information: www.solarstromag.com
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