DGAP-News: CHORUS Clean Energy AG increases profitability in the first half of 2016

CHORUS Clean Energy AG increases profitability in the first half of 2016

-Group revenue reaches EUR 29.4 million

-EBITDA increases by 5.7 percent to EUR 23.6 million

-7 wind parks with a total output of about 100 megawatts added to the portfolio

-Positive outlook confirmed for the 2016 financial year as a whole

Neubiberg/Munich, August 31, 2016- CHORUS Clean Energy AG (“CHORUS”), based in Neubiberg near Munich, a company specializing in the operation of solar and wind parks, generated revenue of EUR 29.4 million in the first half of 2016 (H1 2015: EUR 30.9 million). This decline is chiefly attributable to the fall in sunlight and wind compared with the prior-year period, as well as the transfer of two Italian solar parks to institutional clients from the Asset Management segment. As yet unrealized one-off earnings in the Asset Management segment are another contributory factor. If the meteorological conditions had reached the level of the multi-year average, earnings growth from electricity generation would have been registered.

Overall revenue from electricity generation at solar and wind parks remained stable, reaching EUR 28.8 million (H1 2015: EUR 28.6 million), thus accounting for the largest share of total revenue. EUR 23.7 million was attributable to earnings from solar electricity generation, with this figure standing at EUR 25.6 million in the prior-year period. Alongside adverse wind conditions compared to the prior-year period, two solar parks in Italy were sold as planned to an Asset Management client and have been operated in this CHORUS segment ever since. By contrast, revenue from electricity generated at wind parks rose from  EUR 3.0 million to EUR 5.1 million in the first half of 2016 – an increase of roughly 70 percent.

During the reporting period, CHORUS acquired three wind parks in Germany with a total output of just under 27 megawatts (MW). This was followed at the end of June 2016 by the acquisition of a portfolio of four wind parks in France with a total output of 62 MW. This is the largest transaction in the history of the company and played a crucial role in the roughly 100 MW expansion of the CHORUS portfolio to a total capacity of approximately 400 MW at the end of the first half of 2016.

During the reporting period, the portfolio generated some 250 million kilowatt hours (kWh) of clean electricity – more than twice as much as in the prior-year period (H1 2015: 119 million kWh). In the first half of 2016 CHORUS generated earnings before interest, taxes and depreciation (EBITDA) of EUR 23.6 million (H1 2015: EUR 22.3 million). The EBITDA margin rose by eight percentage points on the prior-year period to about 80 percent. The financial result decreased by EUR 3.8 million from EUR -2.6 million to EUR -6.4 million. This decline is almost solely attributable to non-cash, IFRS-related measurements of financial instruments (swaps) due to a further decrease in interest rates. These valuations will expire at the end of the term of each instrument. Largely due to the aforementioned decline, the net profit for the period fell from EUR 5.6 million in the prior-year period to EUR 4.1 million.

“Taking into account the meteorological conditions, we are satisfied with the results for the first half of the year. We are particularly pleased with the
increase in profitability and the significant expansion of our solar and wind park portfolio. Between the beginning of January and the end of August 2016, the total output of our parks rose by more than 200 megawatts, meaning that we anticipate further increases in revenue from electricity generation in the course of the year,” says CEO Holger Götze.

As of the reporting date June 30, 2016, equity amounted to EUR 229.4 million and was therefore on a par with the level on December 31, 2015. As a result, the company continues to exhibit a pleasingly high equity ratio of 35 percent. The company is confirming its forecast for the current 2016 financial year. On the basis of the course of business to date and the estimates for the second half of the year, the Management Board is optimistic about the future and continues to expect that the company will close the financial year with revenue of more than EUR 62 million and EBITDA of more than EUR 46 million. This forecast does not include additional investments in wind and solar parks, as well as new transactions in the Asset Management segment during the course of the year.

The end of the reporting period was dominated by the public takeover offer of Capital Stage AG that will be executed by an exchange of shares. Management Board and Supervisory Board of CHORUS welcome the takeover offer. They evaluate the amount of the compensation offered as appropriate. In addition to that the objectives connected with the takeover are in the best interest of the company, its shareholders and employees. Until September 16, 2016 the CHORUS shareholders can exchange their shares for shares of Capital Stage AG. The new combined company will be one of the leading operators of solar and wind parks in Europe with a considerable growth potential.

A number of events occurred after the end of the reporting period on June 30, 2016, that – in the view of the Management Board – will have a positive impact on the further course of business. On August 11, 2016, the company’s shares were included in the SDAX stock market index. As a result, the management expects the share and the company as a whole to boost their profile among both domestic and international investors. Furthermore CHORUS once again increased the portfolio it manages by adding 13 solar and wind parks with a total output of more than 100 MW.