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ET | Source: Scatec Solar

Q2 2017 Presentation.pdf

Q2 2017 Report.pdf

Oslo, July 21, 2017: Scatec Solar's second quarter consolidated revenues reached NOK 279 million, up from 213 million in the same period last year. Consolidated EBITDA reached NOK 217 million, up from NOK 153 million last year. The year on year increase in revenues and EBITDA is mainly explained by better solar irradiation, additional revenues from the new plants in Jordan and a strengthening of ZAR/NOK of 17%.

Scatec Solar's proportionate share of revenues reached NOK 165 million, down from 437 million in the same period last year. The proportionate EBITDA reached NOK 100 million in line with the same period last year. Cash flow to equity across all business activities reached NOK 20 million in the second quarter, compared to NOK 31 million in the same period last year.

Power production reached 147 GWh in the second quarter, up 24% from same quarter last year, excluding divestments, and down 6% from previous quarter due to seasonally lower production in South Africa.

"We have made significant progress on the 1,143 MW project backlog over the last few months and several projects are approaching financial close. With these projects, we are set to strengthen our position as a leading emerging market focused IPP. With technology innovation and cost reductions in the industry we are exploring additional partnerships and new business models that will allow us to add to our growth opportunities ", says Scatec Solar's CEO, Raymond Carlsen.

For more details, please see attached the second quarter report and presentation.

A presentation of the results will be held today at 08.00 at Høyres Hus, Stortingsgata 20, 0161 Oslo. The presentation and Q&A session can also be followed through a live webcast from our website www.scatecsolar.com/investor.

For further information, please contact:

Mr. Raymond Carlsen, CEO,          tel: +47 454 11 280           This email address is being protected from spambots. You need JavaScript enabled to view it. 

Mr. Mikkel Tørud, CFO,                  tel: +47 976 99 144           This email address is being protected from spambots. You need JavaScript enabled to view it.


About Scatec Solar

Scatec Solar is an integrated independent solar power producer, delivering affordable, rapidly deployable and sustainable source of clean energy worldwide. A long-term player, Scatec Solar develops, builds, owns, operates and maintains solar power plants, and already has an installation track record of 600 MW.

The company is producing electricity from 322 MW of solar power plants in the Czech Republic, South Africa, Rwanda, Honduras and Jordan. With an established global presence, the company is growing briskly with a project backlog and pipeline of 1.8 GW under development in the Americas, Africa, Asia and the Middle East. Scatec Solar is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol 'SSO'.

To learn more, visit www.scatecsolar.com

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ET | Source: Franklin Electric

FORT WAYNE, Ind., July 20, 2017 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. (NASDAQ:FELE) announces its partnership with STAR Island, the world’s first-of-its-kind, off-grid sustainable island destination. STAR (Sustainable Terrain And Resources) Island, a 35-acre cay located off the northern coast of Eleuthera, Bahamas, is proving travelers can enjoy sustainability without sacrifice. The island’s integrated off-grid philosophy is employed to generate electricity using solar panels, producing pure drinking water from a reverse osmosis system running on Franklin Electric’s solar powered pumps, and providing organically-grown food, highlighting just a few of the island’s innovative green solutions.

Franklin Electric’s new Fhoton SolarPAK System was selected to supply the island with its potable water and will be the first of many pumping systems the company supplies for STAR Island. Franklin Electric and STAR Island are committed to further innovation with green pump technologies to assist with other water-based applications such as the removal of wastewater, decorative water features, and water pressure boosting applications.

The Fhoton SolarPAK System features a Franklin Electric submersible pump and motor, and the Fhoton solar controller in one package. When used with solar panels to power the pump and motor, the system draws groundwater to the surface for a variety of uses. The system is an ideal choice for remote or “off grid” areas where delivering water is impractical due to the availability of electricity or for those that simply want to conserve energy. The catalyst behind this new system, the Fhoton solar controller, features a compact modular design, providing installation flexibility for the contractor. For added durability, it touts a robust IP66, NEMA 4 enclosure that protects against wildlife, insects, dust, and weather. The controller includes diagnostic features and built-in protection from potential harmful conditions, such as: surge, underload (dry run), overvoltage, locked pump, open and short circuit, overheated controller, and reverse polarity.

The Franklin Electric Fhoton SolarPAK System is cULus and UL approved and available in a variety of flow rates from 2.5 to 90 gpm (9.5 to 270 lpm) and power ratings of 0.75 and 1.5 hp (0.55 or 1.1 kW). Fhoton’s motor control algorithm and hardware design enable the end user to get a higher solar- or photon-to-water energy conversion ratio, which means more water with less sunlight needed. It can drive a broad range of submersible and surface motor types and can be used in a new solar array or retrofit to an existing array in many cases, providing added application flexibility.

The Fhoton SolarPAK System supports a variety of pumping applications, including: livestock watering, tank/cistern filling, wildlife refuge and game farms, rural water supply for villages and homesteads, irrigation systems, fountains, vineyards, renewable energy projects, effluent pumping, rain harvesting, and more.

“We are so honored to be a part of the STAR Island initiative. Franklin Electric remains dedicated to providing the market with new products, systems, and services to address application challenges, so we appreciate Mr. David Sklar’s pioneering vision and contribution to the ever-growing green initiative. Like most locations globally, STAR Island has ample sunlight to run a solar pumping system. Given the fact that solar panels are as cost effective as ever and delivering water via the grid is impractical, in this case, due to the unavailability of electricity, the Fhoton SolarPAK System is an ideal choice for this project,” said Mr. Don Kenney, President, North America Water Systems and Vice President, Franklin Electric Co., Inc.

Against incredible odds and with limited resources, STAR Island Bahamas set out on a mission to be the world’s first sustainable island destination, with guilt-free comfort to demonstrate that a desirable carbon-neutral lifestyle is both possible and realistic.

According to the project’s founder and CEO, David Sklar, a Bluffton, South Carolina ‘eco-tect’ recognized for his innovative design solutions, “Our development priorities include showcasing the latest clean technologies, sustainable products and green building, all with an eye to being able to scale and replicate the project. We envision the island as a blueprint for the future, reducing the learning curve for others in the fight against pollution of the planet and climate change.”

The first phase of the project featuring The Beach Bar & Grill, beach cabanas and Organic Island Garden opened to the public this spring. Visitors now can enjoy lunch by the beach featuring organic island-grown produce and fresh local catches. Activities such as bone fishing, kayaking, paddle boarding, snorkeling, birdwatching and spotting sea turtles are also available. Guests can also book the island for private events to create the perfect wedding, party or secluded escape in a natural and exclusive setting.

STAR Island recently opened its first overnight stay unit called “The Nest”, offering guests an opportunity to take a sustainable lifestyle for a test drive. The Nest is a 650 sq. ft. suite located only a few steps from the beach, Organic Garden, and The Beach Bar & Grill. It features a modern Caribbean design with private balconies offering amazing views of its crystal turquoise waters – a perfect getaway for couples looking for a relaxing retreat. The Nest is open for reservations.

Phase 2 of the project, includes construction of beachfront bungalows, as well as expansion of the power and water systems and the construction of a hydroponic greenhouse and aquaculture program.

The island is conceived as an ongoing project, where guests can get involved and experience something new and interactive: whether helping harvest produce, plant a tree or creating an artificial reef, it's sure to be a visit to remember.

For solar installers looking to partner with a drilling or pump installation expert, Franklin Electric will connect them with its expansive network of water systems professionals. For more information on all Franklin Electric solar products, visit www.franklinwater.com.

Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and fuel. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications.

STAR Island Bahamas was established in 2006 by a small group of individuals with a single mission: to provide the world’s first sustainable island destination, where desirable experiences and environmental care intersect. The project showcases innovative solutions to produce clean power, pure water and fresh food on-site while offering a unique hands-on travel experience to visitors. STAR Island Bahamas has been recognized and acclaimed by the Bahamian government as a pioneer in a new era of sustainable development and tourism. For more information, please visit www.starislandbahamas.net.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases,  raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, the Company’s accounting policies, future trends, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2016, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements.

Contact:
Eric Pulley
Franklin Electric Co., Inc.
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260-827-5677

Media Contact:
Valerie Harding
Ripple Effect Communications
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617-536-8887
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ET | Source: JA Solar Holdings Co., Ltd.

BEIJING, July 13, 2017 (GLOBE NEWSWIRE) -- JA Solar Holdings Co., Ltd. (Nasdaq:JASO) ("JA Solar" or the "Company"), one of the world's largest manufacturers of high-performance solar power products, today provided details of a fire accident that occurred at the Company’s cell facility in Yangzhou, Jiangsu province, China.

The fire broke out at around 1:32 AM Beijing time on July 13, 2017 at Fab 7 of JA Solar’s cell facility in Yangzhou.  The fire was completely put out by firefighters at around 6:00 AM and there were no casualties or injuries in the incident. The equipment being affected were the old production lines installed in 2009 and had been scheduled for replacement within one year. The Company expects the interruption of the cell production to be minimum. Based on the Company’s estimates, the incident impacted approximately 6% of the Company’s total cell production capacity. JA Solar maintains insurance coverage for all its production equipment and has started the process to make insurance claims associated with the incident. The cause of the fire at the Yangzhou facility remains under investigation.

About JA Solar Holdings Co., Ltd.

JA Solar Holdings Co., Ltd. is a leading manufacturer of high-performance solar power products that convert sunlight into electricity for residential, commercial, and utility-scale power generation. The Company is one of the world’s largest producers of solar power products. Its standard and high-efficiency product offerings are among the most powerful and cost-effective in the industry. The Company distributes products under its own brand and also produces on behalf of its clients. The Company shipped 5.2 GW of solar power products in 2016. JA Solar is headquartered in Beijing, China, and maintains production facilities in Shanghai, Hebei, Jiangsu and Anhui provinces in China, as well as Penang, Malaysia and Hanoi, Vietnam.

For more information, please visit www.jasolar.com.

CONTACT:

The Blueshirt Group
Ralph Fong
Phone: +1 (415) 489-2195
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JA Solar Holdings Co., Ltd.

Zhabei, CHINA

CONTACT:

The Blueshirt Group
Ralph Fong
Phone: +1 (415) 489-2195
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

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ET | Source: Fortum

multilang-release

FORTUM CORPORATION HALF-YEAR FINANCIAL REPORT JANUARY-JUNE 2017 20 JULY 2017 AT 9:00 EEST

April−June 2017

  • Comparable EBITDA EUR 219 (209) million, +5%
  • Comparable operating profit EUR 109 (122) million, -11%
  • Operating profit EUR 66 (67) million, of which EUR -42 (-54) million related to items affecting comparability
  • Earnings per share EUR -0.08 (0.06), of which EUR -0.14 (0.00) related to a Swedish income tax case and EUR -0.04 (-0.05) related to items affecting comparability
  • Cash flow from operating activities totalled EUR 232 (-5) million
  • Fortum and City of Oslo to restructure ownership in Hafslund

January−June 2017

  • Comparable EBITDA EUR 642 (566) million, +13%
  • Comparable operating profit EUR 421 (397) million, +6%
  • Operating profit EUR 456 (437) million, of which EUR 34 (40) million related to items affecting comparability
  • Earnings per share EUR 0.30 (0.43), of which EUR -0.14 (0.00) related to a Swedish income tax case and EUR 0.03 (0.03) related to items affecting comparability
  • Cash flow from operating activities totalled EUR 514 (370) million
  • City Solutions division divided into City Solutions and Consumer Solutions to support strategy implementation
  • The operating profit target level (EBIT) of RUB 18.2 billion for the Russia segment was reached in the first quarter of 2017

Summary of outlook

  • Fortum continues to expect the annual electricity demand to grow in the Nordic countries by approximately 0.5% on average
  • The Generation segment's Nordic generation hedges: approximately 45% hedged at EUR 30 per MWh for the rest of 2017 and approximately 45% hedged at EUR 28 per MWh for 2018.

Key financial ratios 

  2016 LTM
Return on capital employed, % 4.0 4.3
Comparable net debt/EBITDA 0.0 0.6

 Key figures 

EUR million or as indicated II/17 II/16 I-II/17 I-II/16 2016 LTM
Sales 937 768 2,169 1,757 3,632 4,044
Comparable EBITDA 219 209 642 566 1,015 1,091
Comparable operating profit 109 122 421 397 644 668
Operating profit 66 67 456 437 633 652
Share of profits of associates and
joint ventures
35 38 94 105 131 120
Profit before taxes 49 61 461 451 595 605
Earnings per share, EUR -0.08 0.06 0.30 0.43 0.56 0.43
Net cash from operating activities 232 -5 514 370 621 765
Shareholders’ equity per share, EUR     14.22 14.92 15.15  
Interest-bearing net debt (at end of period)     605 -934 -48  

Fortum’s President and CEO Pekka Lundmark:

“Fortum's strategy implementation and capital redeployment continued during the second quarter. Over the last two years we have made three significant acquisitions: DUON, Ekokem and, in the second quarter 2017, Hafslund. At the same time, we have stepped up our investments for the future. Recent initiatives include solar power in India, wind power in the Nordics and Russia, nuclear services in Germany, expanding our Charge & Drive network as well as digitalising our customer interface with the MyFortum app. Once these investments are completed we will have redeployed around 20% of the capital, and recovered close to 100% of the cash flow generated by the divested electricity distribution business. We will continue on the path set out by our strategy to increase our profitability and secure our long-term competitiveness.

The second quarter of 2017 did not show substantial improvements in the market conditions. Nordic spot prices remain on a fairly low level, although higher than the very low prices in 2016. Forward prices have improved somewhat, but are still on lower levels than the current spot prices. The quarter was characterised by colder weather and stable water reservoirs. The reservoir level at the end of June was close to the long-term average levels and changed only marginally during the quarter.

The comparable operating profit for the second quarter declined by 11% to EUR 109 million. Still the half-year result was above last year due to the strong performance in the first quarter.

Heat sales increased thanks to the colder weather, which positively affected the results of City Solutions. Consequently the comparable operating profit increased by EUR 6 million compared to the second quarter of 2016. In spite of good availability in our nuclear production, the result of Generation declined. The result was burdened by slightly lower hydro volumes and a lower achieved power price. The Russia segment continued the strong performance, improving its results by EUR 19 million. We have strengthened our development efforts in new ventures and R&D and expect them to start paying back from 2018.

The highlight of the quarter was the successful restructuring of our ownership in Hafslund, announced at the beginning of the quarter. Fortum will gain 1.1 million new customers through the restructuring, increasing our Nordic customer base to 2.4 million. This offers a great platform for the development of new innovative solutions and services for our customers. Fortum will also join forces with the City of Oslo by merging Hafslund's Heat business area with the City of Oslo's waste-to-energy plant, Klemetsrudanlegget. The transactions are completely in line with our strategic ambitions and will have a positive effect on our EBITDA. In June, the Oslo City Council approved the transactions. Also all required regulatory approvals have been received.

After finalising our investment programme in conventional power and heat generation in Russia last year, we embarked on diversifying our portfolio by investing in the Ulyanovsk wind park. It is the first industrial-scale wind park in Russia, with commissioning expected in the beginning of 2018. During the second quarter of 2017 we announced the establishment of the Fortum-RUSNANO wind investment fund. The investment supports our previously announced ambition to secure around 500 MW of wind power capacity in Russia. The Russian CSA auction in June 2017 was a success for the fund, as it was able to secure substantial capacities for a price range of EUR 115-135 per megawatt-hour.

Fortum advocates for market-based solutions and improved coherence between policies and countries. This was stressed in the joint statement by Fortum and other large Nordic utilities in June. Fortum also fully supports the stronger coordination between the Nordic countries, as proposed in the Nordic Energy Ministers' Ollila-report in June. Coherent energy policy is and will be an essential factor in securing a sustainable transition to a clean energy system largely based on renewables in the decades to come.“

Financial results

Sales by segment 

EUR million II/17 II/16 I-II/17 I-II/16 2016 LTM
Generation 402 384 876 851 1,657 1,682
City Solutions 205 121 495 349 782 928
Consumer Solutions 164 146 406 321 668 753
Russia 238 182 586 431 896 1,051
Other 24 23 48 46 92 94
Netting of Nord Pool transactions -73 -69 -191 -189 -384 -386
Eliminations -23 -19 -52 -52 -79 -79
Total 937 768 2,169 1,757 3,632 4,044

Comparable EBITDA by segment 

EUR million II/17 II/16 I-II/17 I-II/16 2016 LTM
Generation 111 124 277 306 527 498
City Solutions 37 20 131 90 186 227
Consumer Solutions 8 15 22 29 55 48
Russia 88 64 256 169 312 399
Other -24 -15 -44 -28 -64 -80
Total 219 209 642 566 1,015 1,091

Comparable operating profit by segment 

EUR million II/17 II/16 I-II/17 I-II/16 2016 LTM
Generation 78 98 214 253 417 378
City Solutions 1 -5 57 39 64 82
Consumer Solutions 6 13 18 26 48 40
Russia 53 34 185 113 191 263
Other -28 -18 -52 -34 -77 -95
Total 109 122 421 397 644 668

 Operating profit by segment 

EUR million II/17 II/16 I-II/17 I-II/16 2016 LTM
Generation 34 32 264 243 338 359
City Solutions 0 -2 59 56 86 89
Consumer Solutions 8 20 -1 25 59 33
Russia 53 36 185 147 226 264
Other -28 -18 -52 -34 -77 -95
Total 66 67 456 437 633 652

April-June 2017

In the second quarter of 2017, sales were EUR 937 (768) million. The increase was mainly due to higher nuclear and thermal volumes, cold weather, the strengthening Russian rouble and the consolidation of Ekokem. Comparable EBITDA totalled EUR 219 (209) million. Comparable operating profit totalled EUR 109 (122) million. The comparable operating profit was burdened by lower hydro volumes and increased costs in the Other segment, mainly due to increased development efforts in new ventures and R&D. The reported operating profit totalled EUR 66 (67) million. Fortum's operating profit for the period was impacted by items affecting comparability, including sales gains, and the IFRS accounting treatment (IAS 39) of derivatives mainly used for hedging, as well as nuclear fund adjustments, amounting to EUR -42 (-54) million (Note 4).

The share of profit from associates and joint ventures was EUR 35 (38) million, of which Hafslund represented EUR 17 (18), TGC-1 EUR 19 (18) and Fortum Värme EUR 1 (1) million. The share of profit from Hafslund and TGC-1 are based on the companies' published first-quarter 2017 interim reports (Note 12).

January-June 2017

In January-June 2017, sales were EUR 2,169 (1,757) million. The increase was mainly due to the strengthening Russian rouble and the consolidation of Ekokem and DUON. Comparable EBITDA totalled EUR 642 (566) million. Comparable operating profit totalled EUR 421 (397) million and reported operating profit totalled EUR 456 (437) million. Fortum's operating profit for the period was impacted by items affecting comparability, including sales gains, and the IFRS accounting treatment (IAS 39) of derivatives mainly used for hedging, as well as nuclear fund adjustments, amounting to EUR 34 (40) million (Note 4).

The share of profit from associates and joint ventures was EUR 94 (105) million, of which Hafslund represented EUR 31 (32), TGC-1 EUR 20 (27) and Fortum Värme EUR 44 (45) million. The share of profit from Hafslund and TGC-1 are based on the companies' published fourth quarter 2016 and first quarter 2017 interim reports (Note 12).

Net financial expenses were EUR -88 (-91) million and include changes in the fair value of financial instruments of EUR -6 (2) million.

Profit before taxes was EUR 461 (451) million.

Taxes for the period totalled EUR 190 (62) million. The effective income tax rate according to the income statement was 41.2% (13.9%). The comparable effective income tax rate, excluding the impact of the share of profit from associated companies and joint ventures as well as non-taxable capital gains and Swedish income tax cases, was 20.3% (18.7%) (Note 8).

The profit for the period was EUR 271 (389) million. Earnings per share were EUR 0.30 (0.43), of which EUR -0.14 (0.00) related to a Swedish income tax case effect and EUR 0.03 (0.03) per share relates to items affecting comparability.

Financial position and cash flow

Cash flow

In January-June 2017, net cash from operating activities increased by EUR 144 million to EUR 514 (370) million, due to EUR 76 million increase in comparable EBITDA, EUR 191 million decrease in realised foreign exchange gains and losses, and EUR 169 million lower income taxes paid. The foreign exchange gains and losses of EUR -63 (128) million relate to the rollover of foreign exchange contracts hedging loans to Russian and Swedish subsidiaries. In June 2016, Fortum paid income taxes in Sweden totalling EUR 127 million regarding an ongoing tax dispute. The change in working capital increased by EUR 58 million to EUR 65 (7) million, which includes the effect of the daily cash settlements for futures in Nasdaq OMX Commodities Europe (Additional cash flow information).

Investments including acquisitions remained at the same level as the previous year, EUR 359 (357) million. Net cash used in investing activities decreased to EUR -199 (-641) million. The change was mainly due to the decrease in cash collaterals given as trading collaterals to commodity exchanges of EUR 72 (-269) million.

Cash flow before financing activities was EUR 315 (-271) million.

Fortum paid dividends totaling EUR 977 (977) million in April 2017. Payments of long-term liabilities totalled EUR 464 (808) million, including the repayment of bonds totalling EUR 343 million and loan payments of 120 million. The net decrease in liquid funds was EUR 1,034 (2,063) million.

Assets and capital employed

Total assets decreased by EUR 1,681 million to EUR 20,283 (21,964 at the end of 2016) million.

Liquid funds at the end of the period were EUR 4,106 (5,155 at the end of 2016) million.

Capital employed was EUR 17,431 (18,649 at the end of 2016) million, a decrease of EUR 1,218 million.

Equity

Equity attributable to owners of the parent company totalled EUR 12,635 (13,459 at the end of 2016) million.

The decrease in equity attributable to owners of the parent company totalled EUR 824 million, and was mainly due to the net profit for the period of EUR 265 million, translation differences of EUR -170 million and dividend payment of EUR 977 million.

Financing

Net cash decreased by EUR 653 million to EUR -605 (48 at the end of 2016) million.

At the end of June, the Group’s liquid funds totalled EUR 4,106 (5,155 at the end of 2016) million. Liquid funds include cash and bank deposits held by OAO Fortum amounting to EUR 223 (105 at the end of 2016) million. In addition to liquid funds, Fortum had access to EUR 1.9 billion of undrawn committed credit facilities (Note 14).

Net financial expenses were EUR -88 (-91) million, of which net interest expenses were EUR -67 (-79) million.

Fortum’s long-term credit ratings were unchanged. Standard & Poor's rating (affirmed in June 2017) is BBB+ and the short-term rating A-2. The outlook is stable. Fitch Ratings long-term Issuer Default Rating (IDR) and senior unsecured rating is BBB+ and the short-term IDR is F2 with a stable outlook.

Key figures

At the end of June, the comparable net debt to EBITDA for the last 12 months was 0.6 (0.0 at the end of 2016).

Gearing was 5% (0% at the end of 2016) and the equity-to-assets ratio 63% (62% at the end of 2016). Equity per share was EUR 14.22 (15.15 at the end of 2016). Return on capital employed for the last 12 months totalled 4.3% (4.0% at the end of 2016).

Market conditions

Nordic countries

According to preliminary statistics, electricity consumption in the Nordic countries was 88 (86) terawatt-hours (TWh) during the second quarter of 2017. The higher consumption was mainly caused by colder weather compared to the second quarter of 2016. In January-June 2017, electricity consumption was 202 (203) TWh.

At the beginning of 2017, the Nordic water reservoirs were at 75 TWh, which is 8 TWh below the long-term average and 23 TWh lower than a year earlier. By the end of June, reservoirs were 3 TWh below the long-term average and 2 TWh lower than a year earlier. The reservoir balance turned from a clear deficit to close to the long-term average during the first half of the year, due to the higher than long-term average precipitation in Norway.

In the second quarter of 2017, the average system spot price in Nord Pool was EUR 27.4 (23.9) per MWh. The main driver for the price increase was the clearly higher marginal cost of coal condense than a year earlier, which contributed to strong continental prices, increasing the export from the Nordics. Colder weather and the delayed spring flooding also contributed to the increase. The average area price in Finland was EUR 30.9 (30.2) per MWh and in Sweden SE3 (Stockholm) EUR 28.5 (26.5) per MWh.

In January-June 2017, the average system spot price in Nord Pool was EUR 29.3 (24.0) per MWh, the average area price in Finland was EUR 32.0 (30.3) per MWh and in Sweden SE3 (Stockholm) EUR 30.2 (25.3) per MWh.

In Germany, the average spot price in the second quarter of 2017 was EUR 29.8 (24.8) per MWh. In January-June 2017, the average spot price was EUR 35.5 (25.0) per MWh.

The market price of CO2 emission allowances (EUA) was EUR 6.5 per tonne at the beginning of the year and EUR 5.0 per tonne at the end of June 2017.

Russia

Fortum operates both in the Tyumen and Khanty-Mansiysk area of Western Siberia, where industrial production is dominated by the oil and gas industries, and in the Chelyabinsk area of the Urals, which is dominated by the metal industry.

According to preliminary statistics, Russian electricity consumption was 238 (230) TWh during the second quarter of 2017. The corresponding figure in Fortum’s operating area in the First price zone (European and Urals part of Russia) was 184 (176) TWh. In January-June 2017, Russian electricity consumption was 522 (510) TWh and the corresponding figure on Fortum's operating area in the First price zone was 402 (388) TWh.

In the second quarter of 2017, the average electricity spot price, excluding capacity price, decreased by 1.6% to RUB 1,148 (1,166) per MWh in the First price zone. In January-June 2017, the average electricity spot price, excluding capacity price, increased by 0.6% to RUB 1,164 (1,157) per MWh in the First price zone.

More detailed information about the market fundamentals is included in the tables at the end of the report (page 59).

European business environment and carbon market

Swedish nuclear and hydro taxes adopted

In May 2017, the Swedish parliament adopted the proposed changes of nuclear and hydropower taxation in accordance with the energy agreement from June 2016. The tax on installed effect in nuclear reactors will be reduced by 90%, starting from 1 July 2017, from SEK 14,770/MW/month to SEK 1,500/MW/month, and abolished on 1 January 2018. The hydro real-estate tax will be reduced from 2.8% to 0.5% in four steps until 2020.

Finnish waste plan published

In May 2017, the National Waste Plan was published for consultation. The main objective is to increase waste recycling. The target rate for municipal solid waste recycling is set to 55% by 2023. According to the plan, the current waste-to-energy capacity is sufficient for municipal solid waste, but for other waste requiring thermal treatment additional capacity of at least one waste-to-energy plant is needed. More capacity is also needed e.g. for pretreatment of waste and biogasification.

The plan also covers taxation of waste incineration and inclusion of waste incineration into the EU emissions trading system.

Finnish Parliament’s statement on the national climate and energy strategy

In May 2017, the Parliament gave its statement on the government’s proposal (November 2016) for the national climate and energy strategy for 2030. The Parliament requires, among others, that the government renews the support schemes for electricity and heat from renewable energy sources with the objective of having cost-efficient and truly technology-neutral schemes. The Parliament also highlights the preparatory measures for the electrification of transport. The government is requested to strengthen regional cooperation and coordination in the Nordic energy market and to study the preconditions for establishing a joint Nordic energy and climate strategy.

Development of Nordic energy cooperation: report by Jorma Ollila

The Nordic Council appointed Mr Jorma Ollila as an independent investigator to make proposals on how to improve Nordic energy cooperation. In June, Mr Ollila delivered his report, which contains several positive suggestions related to stronger coordination of national energy and climate policies, energy research as well as EU positions in order to strengthen the Nordic voice in Brussels. One important proposal is the establishment of a Nordic power market forum to bring together different energy stakeholders. The report supports further development of the energy-only market, stronger real-time price signals and harmonised retail markets. The Nordic energy ministers will discuss the report in their annual meeting in November 2017.

Outlook

Nordic market

Despite macroeconomic uncertainty, electricity is expected to continue to gain a higher share of total energy consumption. Electricity demand in the Nordic countries is expected to grow by approximately 0.5% on average, while the growth rate for the next few years will largely be determined by macroeconomic developments in Europe, and especially in the Nordic countries.  

During January-June 2017, the oil price decreased, whereas the coal price continued increasing and is at a clearly higher level than the second quarter of 2016. The price of CO2 emission allowances (EUA) remained on the same level. The price of electricity for the upcoming twelve months increased both in the Nordic area and in Germany.

In mid-July 2017, the quotation for coal (ICE Rotterdam) for the remainder of 2017 was around USD 80 per tonne and for CO2 emission allowances for 2017 around EUR 5.5 per tonne. The Nordic system electricity forward price in Nasdaq Commodities for the rest of 2017 was around EUR 30 per MWh and for 2018 around EUR 26 per MWh. In Germany, the electricity forward price for the rest of 2017 was around EUR 35 per MWh and for 2018 around EUR 31 per MWh. Nordic water reservoirs were about 2 TWh below the long-term average, close to the levels one year ago.

Generation

The Generation segment’s achieved Nordic power price typically depends on such factors as the hedge ratios, hedge prices, spot prices, availability and utilisation of Fortum's flexible production portfolio, and currency fluctuations. Excluding the potential effects from changes in the power generation mix, a 1 EUR/MWh change in the Generation segment’s Nordic power sales achieved price will result in an approximately EUR 45 million change in Fortum's annual comparable operating profit.

As a result of the nuclear stress tests in the EU, the Swedish Radiation Safety Authority (SSM) has decided on new regulations for Swedish nuclear reactors. For the operators, this means safety investments that should be in place no later than 2020.

The process to review the Swedish nuclear waste fees is done in a three-year cycle. The Swedish Nuclear Fuel and Waste Management Co (SKB) has updated the new technical plan for the SSM to review. The final decision on the new nuclear waste fees will be made by the Swedish government in December 2017. However, as a result of the decision on early closure of nuclear power plants, SSM recalculated the waste fees for the Oskarshamn and Ringhals power plants.

On 1 June 2017, the Swedish government submitted a proposal to the parliament regarding the calculations of nuclear waste fees and the investment of the nuclear waste fund. According to the proposal the operating time for calculating the waste fee will be 50 years, as opposed to the current 40 years. The fund would also be allowed to invest in other financial instruments than government bonds. The proposed changes and the legislation are expected to be effective from 1 December 2017.

In September 2016, the Swedish government presented the budget proposal for the coming years. One of the key elements was the proposal that taxation of different energy production forms should be more equal and the tax burden of nuclear and hydro should be taken to the level of other production technologies. The budget states that the nuclear capacity tax will be reduced to 1,500 SEK/MW per month from 1 July 2017 and abolished on 1 January 2018. In 2017, the tax for Fortum is estimated to decrease by approximately EUR 32 million to EUR 52 million due to the tax decrease and by another EUR 5 million due to the premature closure of Oskarshamn 1 in the middle of the year. In 2018, there is no capacity tax.

The hydropower real-estate tax will decrease over a four-year period beginning in 2017, from todays 2.8% to 0.5%. The real-estate tax on hydro will, as stated in the government’s budget, be reduced in four steps: in January 2017 to 2.2%; in January 2018 to 1.6%; in January 2019 to 1.0%; and in January 2020 to 0.5%. In 2017, the tax for Fortum is estimated to decrease by approximately EUR 20 million to approximately EUR 95 million.

In addition to the decrease in the tax rate, the hydropower real-estate tax values, which are linked to electricity prices, will be updated in 2019. The real-estate tax values are updated every six years. With the current low electricity prices, the tax values in 2019 will be clearly lower than today. The process for renewing existing hydro permits will also be reformed.

In October 2016, the Swedish Energy Agency presented a concrete proposal on how to increase the production of renewable electricity by 18 TWh in 2020-2030 within the electricity certificate system, as part of the Energy Agreement. In April 2017, the Swedish government decided that the increase will be carried out in a linear manner.

In 2015, Swedish OKG AB decided to permanently discontinue electricity production at Oskarshamn’s nuclear plant units 1 and 2. Unit 1 was shut down on 17 June 2017, approximately 2 weeks earlier than planned, and unit 2 has been out of operation since June 2013. The closing processes for both units are estimated to take several years.

City Solutions

In City Solutions, steady growth, cash flow and earnings are achieved through investments in new plants and through acquisitions. Fuel cost, availability, flexibility and efficiency as well as gate fees are key drivers in profitability, but also the power supply/demand balance, electricity price and the weather affect profitability.

In May 2016, the Finnish government decided to increase the tax on heating fuels by EUR 90 million annually from 2017 onwards. The negative impact on Fortum is estimated to be approximately EUR 5 million per year.

Consumer Solutions

In Consumer Solutions, profitability is achieved through competitive product and service offerings, efficient operations, scale benefits in systems and operations as well as prudent risk management. As the Consumer Solutions segment hedges most of the market risk exposure, it is typically more exposed to short-term variations in power prices and demand than to long-term price trends. Short-term volatility, often caused by temperature, can have a substantial impact on power prices as well as on power demand.

The competitive environment affects the Consumer Solutions segment both through the sales margins of the products sold as well as the size of the customer base. The competition in the Nordic electricity retail market is expected to remain challenging over the coming years, putting pressure on sales margins.

Russia

The Russia segment's new capacity generation built after 2007 under the Russian Capacity Supply Agreement (CSA) is a key driver for earnings growth in Russia, as it is expected to bring income from new volumes sold and also to receive considerably higher capacity payments than the old capacity. Fortum will receive guaranteed capacity payments for a period of 10 years from the commissioning of a plant. The received CSA payment will vary depending on the age, location, size and type of the plants, as well as on seasonality and availability. CSA payments can vary somewhat annually because they are linked to Russian Government long-term bonds with 8 to 10 years maturity. In addition, the regulator will review the earnings from the electricity-only market three years and six years after the commissioning of a unit and could revise the CSA payments accordingly.

In June, 1,000 MW of the bids of the 50/50 owned Fortum-RUSNANO wind investment fund were selected in the Russian wind auction. The bids are for projects to be commissioned during the years 2018-2022 with a price corresponding to approximately EUR 115-135 per MWh. The projects will be covered by Capacity Supply Agreements (CSA) for a period of 15 years.

The long-term Competitive Capacity Selection (CCS) for the years 2017-2019 was held at the end of 2015, and the long-term CCS for year 2020 was held in September 2016. All Fortum’s plants were selected. For the volume of Fortum’s installed "old" capacity, 195 MW (out of 2,214 MW), Fortum has obtained forced mode status, i.e. it receives payments for the capacity at a higher rate.

The Russian annual average gas price growth was 3.6% in 2016. Fortum estimates the Russian annual average gas price growth to be 2.0% in 2017.

Capital expenditure and divestments

Fortum currently expects its capital expenditure, excluding acquisitions, to be approximately EUR 800 million in 2017. The annual maintenance capital expenditure is estimated to be below EUR 300 million in 2017, well below the level of depreciation.

Taxation

The effective corporate income tax rate for Fortum in 2017 is estimated to be 19-21%, excluding the impact of the share of profits of associated companies and joint ventures, non-taxable capital gains, non-recurring items and a Swedish income tax case.

On 11 May 2017, the administrative court in Stockholm, Sweden, gave its decisions related to Fortum’s income tax assessments for the year 2013. The court decisions were not in Fortum’s favour. Fortum will appeal the decisions. If the decisions remain in force despite the appeal, the impact on the net profit would be approximately EUR 28 million (approximately SEK 273 million). Fortum has not made a provision as, based on legal analysis, the EU Commission’s view and supporting legal opinions, the cases should be ruled in Fortum’s favour. The assessments concern the loans given in 2013 by Fortum’s Dutch financing company to Fortum’s subsidiaries in Sweden. The interest income for these loans was taxed in the Netherlands. The Swedish tax authority considers just over a half of the interest relating to each loan as deductible, i.e. deriving from business needs. The rest of the interest is seen as non-deductible. The decisions are based on the changes in the Swedish tax regulation in 2013.

On 30 June 2017, the Court of Appeal in Stockholm, Sweden, ruled against Fortum related to Fortum's income tax assessments in Sweden for the years 2009-2012. Due to the decision of the Court of Appeal, Fortum booked a tax cost of 1,175 MSEK (EUR 123 million) in the second-quarter 2017 results. The booking did not have any cash flow effect for Fortum, as the additional taxes and interest have already been paid in 2016. The case concerns Fortum’s right to deduct intra-group interest expenses in Sweden in the years 2009-2012. Fortum restructured its operations and reallocated loans in 2004-2005 to ensure future operations. Fortum does not agree with the Court's decision and will apply for the right to appeal from the Supreme Administrative Court.

Hedging

At the end of June 2017, approximately 45% of Generation's estimated Nordic power sales volume was hedged at EUR 30 per MWh for the rest of 2017 and approximately 45% at EUR 28 per MWh for 2018.

The reported hedge ratios may vary significantly, depending on Fortum's actions on the electricity derivatives markets. Hedges are mainly financial contracts, most of them electricity derivatives quoted on Nasdaq Commodities.

Change of Fortum Corporation's trading and issuer codes

As of 25 January 2017, Fortum Corporation changed its trading and issuer codes. The trading code of Fortum Corporation's share changed from FUM1V to FORTUM, and Fortum's issuer code was changed from FUM to FORTUM.

Dividend payment

The Annual General Meeting 2017 decided to pay a dividend of EUR 1.10 per share for the financial year that ended 31 December 2016. The record date for the dividend was 6 April 2017 and the dividend payment date was 13 April 2017.

Espoo, 19 July 2017

Fortum Corporation
Board of Directors

Further information:

Pekka Lundmark, President and CEO, tel. +358 10 452 4112
Markus Rauramo, CFO, tel. +358 10 452 1909

Investor Relations & Financial Communications: Måns Holmberg, tel. +358 44 518 1518, Rauno Tiihonen, tel. +358 10 453 6150, Pirjo Lifländer +358 40 643 3317, and This email address is being protected from spambots. You need JavaScript enabled to view it.

Media: Corporate Press Officer, Mari Kalmari, tel. +358 40 520 1709

The condensed Interim Report has been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, as adopted by the EU. The interim financials have not been audited.

Financial calendar in 2017

Interim Report January-September will be published on 26 October 2017 at approximately 9:00 EEST

Distribution:

Nasdaq Helsinki
Key media
www.fortum.com

More information, including detailed quarterly information, is available on Fortum’s website at www.fortum.com/investors

Read more: Fortum's Half-Year Financial Report 2017:...

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ET | Source: Scatec Solar

Oslo, July 7, 2017: Scatec Solar ASA will release its second quarter results on Friday, July 21, 2017 at 07:00 (CET).

A presentation of the results will be held on the same day at 08.00. The location of the presentation is Høyres Hus (6th floor), Stortingsgata 20, 0161 Oslo. The presentation and Q&A session can be followed through a live webcast from our website on www.scatecsolar.com/investor.

For more information please contact:

Mikkel Tørud, CFO
Mobile: +47 97699144

About Scatec Solar
Scatec Solar is an integrated independent solar power producer, delivering affordable, rapidly deployable and sustainable source of clean energy worldwide. A long term player, Scatec Solar develops, builds, owns, operates and maintains solar power plants, and already has an installation track record of close to 600 MW.

Currently, the company is producing electricity from 322 MW of solar power plants in the Czech Republic, South Africa, Rwanda, Honduras and Jordan. With an established global presence, the company is growing briskly with a project backlog and pipeline of more than 1.8 GW under development in the Americas, Africa, Asia and the Middle East. Scatec Solar is headquartered in Oslo, Norway.

Subscribe for press releases here: www.scatecsolar.com/investor/stock-exchange-notices/subscribe

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Read more: Invitation to presentation of Scatec Solar ASA's...

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ET | Source: JA Solar Holdings Co., Ltd.

BEIJING, July 03, 2017 (GLOBE NEWSWIRE) -- JA Solar Holdings Co., Ltd. (Nasdaq:JASO) ("JA Solar" or the "Company"), one of the world's largest manufacturers of high-performance solar power products, today announced the results of its Annual General Meeting of shareholders held on June 30, 2017 in Beijing, China.

Each of the matters submitted for shareholder approval at the meeting was approved. Specifically, the shareholders passed resolutions approving:

  • The audited financial statements and the Reports of the Chairman and Chief Executive Officer for the year ended December 31, 2016; and
  • The re-election of Erying Jia as a director of the Company.

Further information can be found in the "Notice of Annual General Meeting of Shareholders," which is available via the "AGM Summary" link in the "Events & Presentations" section of the Company's investor relations website at http://investors.jasolar.com

About JA Solar Holdings Co., Ltd.

JA Solar Holdings Co., Ltd. is a leading manufacturer of high-performance solar power products that convert sunlight into electricity for residential, commercial, and utility-scale power generation. The Company is one of the world’s largest producers of solar power products. Its standard and high-efficiency product offerings are among the most powerful and cost-effective in the industry. The Company distributes products under its own brand and also produces on behalf of its clients. The Company shipped 5.2 GW of solar power products in 2016. JA Solar is headquartered in Beijing, China, and maintains production facilities in Shanghai, Hebei, Jiangsu and Anhui provinces in China, as well as Penang, Malaysia and Hanoi, Vietnam.

For more information, please visit www.jasolar.com

CONTACT: The Blueshirt Group Ralph Fong Phone: +1 (415) 489-2195 Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

JA Solar Holdings Co., Ltd.

Zhabei, CHINA

CONTACT:

The Blueshirt Group
Ralph Fong
Phone: +1 (415) 489-2195
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

JA Solar Holdings Co., Ltd. Logo

LOGO URL | Copy the link below

Formats available:

Read more: JA Solar Announces Results of 2017 Annual...

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ET | Source: RGS Energy

DENVER, July 17, 2017 (GLOBE NEWSWIRE) -- RGS Energy (NASDAQ:RGSE), the nation’s original solar company since 1978, provided a business update on its progress during the second quarter, using its debt-free balance sheet, toward revenue growth and foundations for profitability.

Summary of Expectations Versus Results:

  April Business
Update Expectation
        2nd Quarter
Preliminary Results
Sales Growth   Gross sales increased ≈2x
Net sales increased ≈3x
Revenue Lag a quarter   Decreased ≈18%
Sales organization Growth   Increased ≈40%
Cost effective marketing Cost effective   Reduced ≈55%
Residential cycle time Reduce   Reduced ≈30%
Cost of goods sold per watt Reduce   Increased <1%
Cash flow Outflow until break-even   Outflow

Management Commentary:

“Our performance this quarter was in-line with expectations we set in our last business update,” said Dennis Lacey, CEO of RGS Energy.  “We made progress on what we see are the foundations for profitability, such as lowering customer acquisition expense and residential cycle time. To grow sales and continue to lay the groundwork for profitability, we have been expending cash as expected. However, we believe that we have sufficient working capital to build a business that will operate profitably and generate positive cash flow in the future.”

“With our last update, we advised that installation revenue would lag sales growth and that occurred this quarter,” continued Lacey. “Our residential segment gross margin percentage reflecting only actual construction crew time was approximately 22%, less than our target of upper 20’s because we cannot absorb well the fixed construction organization costs when our revenue is low.  Further, we are maintaining a larger construction organization than we would need for our current backlog because we are confident we will grow sales and require a larger construction organization.”

“We’ve said the process of achieving profitability will take some time,” continued Lacey. “Given our $16 million capital raise in February, it is important to note that this is our first full quarter of operating with what we feel is appropriate working capital in place. As this is the first quarter on this basis, we are heartened by the positive trends.”

Growing Sales for Future Revenue:

  2nd Quarter
2017
(Preliminary)
    1st Quarter
2017
(Reported*)
    % change
from Q1

Building current backlog: (000’s omitted)      
Beginning backlog   $7,392       $9,375   -21%  
Gross sales:      
Residential homeowners   4,871       2,848   71%  
Small business commercial   1,531       111   1,281%  
Sunetric (Hawaii)   1,003       82   1,124%  
Total   7,405       3,035   144%  
Cancellations   2,415       1,645   47%  
Net sales   4,990       1,390   259%  
Installation revenue   2,697       3,372   -20%  
       
Ending backlog   $9,685       $7,392   31%  
       
Service and other revenue   308       281   10%  
Total reported revenue   $3,006       $3,653   -18%  
       
Building Future Backlog:      
Awarded Community Solarize Programs:      
Residents in awarded community solarize areas   34,735       -  
Historical final close rate per resident   0.6%       -  
Historical average sales price ≈$27,000      
Growth of Sales Organization:
(monthly average headcount during quarter)
     
Customer acquisition employees   63       45   39%  
Direct sales representatives   40       27   49%  
 
* reclassified

Foundation for Profitability, Residential Segment, Our Largest Segment:

  2nd Quarter
2017
(Preliminary)
  1st Quarter
2017
(Reported*)
  % change
from Q1

Productivity of Sales Organization:      
Number of sales   173       105     65%  
Sales per direct salesperson (avg)   4.81       3.89     24%  
Controlling Customer Acquisition Expense:      
Per watt sold $0.62     $0.94     -34%  
Ratio of expense to sales   .27       .59     -55%  
Increasing Installation Revenue Gross Margin Percentage:      
Installation cycle time (avg)   111       161     -31%  
COGS per watt   2.84       2.82     <1%  
Gross margin % on actual installation time   22%       25%     -11%  
Gross margin % including idle time   6%       15%     -59%  
 
* reclassified

Financing in Place to Grow Sales:

Working Capital: June 30, 2017
(Preliminary)
    March 31, 2017
(Actual*)
Cash   $9,736
    $14,077
All Other Assets   6,494     6,593
Total Current Assets     16,230     20,670
Current Liabilities   3,310     3,824
Working Capital   $12,920     $16,846
 
* reclassified

 
Management Commentary:

Sales/Marketing: “We are excited to report progress in our growth strategy, our second quarter performance more than doubled gross sales,” said Seth Wiggins, RGS Energy’s vice president of sales. “We typically see an increase in the absolute number of cancellations when sales increase. Nonetheless, our net sales after cancellations more than tripled this quarter. Our small business commercial segment demonstrated especially strong growth as we increased our sales team to address this opportunity. Further, during the quarter we were awarded two solarize communities where we are selling to homeowners during the third quarter.”

Wiggins went on to say: “For some time, we have discussed why we need to control customer acquisition expenses and our plans to reduce this cost by using digital marketing, cost effective lead programs and improve the productivity of our sales representatives with training.  We are pleased to note the positive trends in reducing this requisite for profitability this quarter.”

Construction/Operations: “We are excited to report that during the second quarter we have reduced our cycle time by 31%. As expected, until we could commence our growth plans, our backlog was at our lowest point at March 31st,” said Brad Bentzen, RGS Energy’s director of operations. “With our new capital during February, we began to grow our sales which allowed us to increase our backlog by 31% by June 30th. We were successful in growing net sales but due to the time to secure customer incentives and loans, not all contracts were installable this quarter. As such, our revenue this quarter was less than the prior quarter and is consistent with our prediction in our last business update that while sales growth would start with the second quarter, revenue growth would be lagging. Because we believe that we will enjoy future sales growth, we have maintained our construction crews to meet that growth. We anticipate that our cost of idle time will decline and gross margin percentage improve, along with revenue growth.”

Finance/Working Capital: “Consistent with our expectations, we expended cash this quarter and expect this to continue until we have built a business that will operate on a positive cash flow basis,” noted Alan Fine, RGS Energy’s principal financial officer. “We anticipate positive cash flow from operations will arise when we achieve our quarterly break-even revenue target of $16 million. We project that if we realize our revenue target for the first quarter of 2018, our projected cash balance at that time would be approximately $4.5 million. If we achieve it in the second quarter of 2018, we project a cash balance of approximately $3 million. Each of these projected cash balances is without considering (i) the anticipated benefits from initiatives such as selling and installing battery storage, energy audits, the impact on new sales from new software and any new states of operation and (ii) an asset based lending facility which the company intends to arrange in the future.”

Fine went on to say: “We are expending cash to grow and train our sales organization, market for leads for our sales organization, develop software to enhance the customer experience, implement new products and services such as battery storage and energy audits, and fund working capital requirements for growth such as increases in inventory and accounts receivable.  All of these expenditures we believe are necessary to build the business that can meet and exceed our targeted break-even revenue target.”

Targets and Expectations:

  • Achieve break-even revenue in the first or second quarter of 2018.
  • Steady and improving progress in sales for the remainder of 2017, with installation revenue growth delayed a quarter.
  • Digital and content marketing, not vendor lead programs, to become the principal source of customer sourcing.
  • Introduce new products and services, such as battery storage and energy audits.
  • Cash outflow from operations until break-even results are achieved. 

Glossary:

Gross Sales - the contract value of contracts signed by customers.

Cancellations - the reduction in backlog from customers canceling contracts and customer deposits retained by the company are recognized as revenue at cancellation. Customers may cancel contracts during statutory rescission periods or for other reasons such as accepting a competitor’s offer or following final site evaluation, a customer determining the solar system will not meet expectations. Typically, during periods of sales growth, the company experiences an increase in cancellations.

Installation and Service Revenue - The company recognizes revenue on residential and small business commercial projects at the time of substantial completion of construction, and on large commercial projects revenue, on a percentage of completion basis.  Service revenue is recognized as earned.

Substantial Completion – the solar power system is fully operational and capable of generating energy, but has not yet received permission to operate from the utility.

Backlog - represents the dollar amount of revenue that may be recognized in the future from signed contracts to install solar energy systems that have not yet been installed without taking into account possible future cancellations. Backlog is not a measure defined by generally accepted accounting principles, and is not a measure of contract profitability. The company’s methodology for determining backlog may not be comparable to methodologies used by other companies in determining their backlog amounts. The backlog amounts we disclose are net of cancellations received and include anticipated revenues associated with (i) the original contract amounts, and (ii) change orders for which we have received written confirmations from customers. Backlog may not be indicative of future operating results, and projects in our backlog may be cancelled, modified or otherwise altered by customers.

Solarize Programs - community-based programs whereby residents work with an exclusive installer to purchase solar power systems at rates which enable members of a community, or a network of municipalities, to receive discounts on solar power systems over a fixed time period based upon the level of community participation. Typically, these programs may lead to sales, net of cancellations, to approximating 0.6% of the residences in a community. Sales arising from community solarize programs are not recognized in the company’s backlog until signing of contracts by individual homeowners.

Customer Acquisition Expense per Watt – Customer acquisition expenses represent the aggregate of the compensation of the sales organization, the compensation of the marketing organization and the cost of acquiring customers leads such as purchasing paid leads, the cost of digital marketing, and other marketing campaigns to acquire customers.  Customer acquisition per watt represents the customer acquisition expense incurred during the period divided by the watts on solar systems sold during the period.  The company presents certain metrics on a per watt basis as it believes this is a typical reporting convention for the solar installation industry.

Cycle Time - length of time from signing of customer contracts until substantial completion.

COGS Per Watt and Gross Margin Percentage on Installations - Cost of goods sold (“COGS”) include direct project installation costs (materials, labor, travel, financing fees, and estimated warranty costs) and indirect costs for project installation support (including un-utilized labor from idle time of construction crews, supplies, and insurance).  The company employs an internal time reporting system to determine COGS and resulting gross margin percentage based upon actual installation time that the company uses to measure its performance in achieving gross margin percentage targets.  Further, the company measures COGS per watt based upon COGS, excluding idle time, divided by the aggregate watts of systems installed during the period. For financial reporting purposes, COGS includes the idle time of construction crews currently maintained by the company in anticipation of future growth of backlog.

Financial Statement Reclassifications – Commencing with the preparation of the financial statements for the second quarter of 2017, the company is making certain reclassifications not impacting reported income, segment results, or stockholders’ equity. In prior periods, the company did not show its warranty liability separately for current and long-term amounts as such reporting would not be material. Commencing with the preparation of its financial statements for the second quarter of 2017, the company is reporting separately its current and long-term warrant liabilities. In addition, commencing with financial statements for the second quarter of 2017, the company is reporting separately revenue from installation of solar systems and revenue from service operations. Lastly, the company is separately disclosing its customer acquisition expense in the statement of operations as it is a key metric for its revenue growth strategy.

About RGS Energy
RGS Energy (NASDAQ:RGSE) is a residential and small business commercial solar Company since 1978 which has installed more than 25,000 solar power systems. RGS Energy makes it very convenient for customers to save on their energy bill by providing turnkey solar solutions - from system design, construction planning, customer financing assistance, installation, to interconnection and warranty.

For more information, visit RGSEnergy.com, on Facebook at www.facebook.com/rgsenergy and on Twitter at www.twitter.com/rgsenergy. Information on such websites is not incorporated by reference into this press release.

RGS Energy is the Company’s registered trade name. The Company files periodic and other reports with the Securities and Exchange Commission under its official name “Real Goods Solar, Inc.”

Forward-Looking Statements and Cautionary Statements

The preliminary financial data discussed above consists of estimates derived from RGS Energy’s internal books and records and has been prepared by, and are the responsibility of, the company’s management. The preliminary estimates discussed above are subject to the completion of financial closing procedures, final adjustments and other developments that may arise between now and the time the financial results for the second quarter ended June 30, 2017 are finalized. Therefore, actual results may differ materially from these estimates and all of these preliminary estimates are subject to change.

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including statements regarding RGS Energy’s results of operations and financial positions, and RGS Energy’s business and financial strategies. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they provide our current beliefs, expectations, assumptions, forecasts, and hypothetical constructs about future events, and include statements regarding our future results of operations and financial position, business strategy, budgets, projected costs, plans and objectives of management for future operations. The words “expect,” “anticipate,” “project,” ”target,” “plan,” “future,” “believe,” “may,” “will” and similar expressions as they relate to us are intended to identify such forward-looking statements.

Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Therefore, RGS Energy cautions you against relying on any of these forward-looking statements.

Key risks and uncertainties that may cause a change in any forward-looking statement or that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include: the effect of electric power generation industry regulations in the states where RGS Energy operates, net electric power metering and related policies; the effect on the cost of photovoltaic panels from determinations by the US government for petitions filed under Section 201 of the 1974 Trade Act by Suniva and SolarWorld; the level of demand for RGS Energy’s solar energy systems; RGS Energy’s ability to implement its revenue growth strategy including expanding, training and improving the productivity of its sales organization, achieve its target level of sales, generating cash flow from operations, acquire cost-effective marketing leads, reduce cycle time for installations, reduce cost of goods sold and expand its product and service offerings; the availability and adequacy of RGS Energy’s working capital; RGS Energy’s ability to arrange an asset based lending facility in the future; RGS Energy’s ability to be awarded community solarize programs and sales thereunder; RGS Energy’s ability to achieve break-even and better results; future cancellations and backlog.

You should read the section entitled “Risk Factors” in our 2016 Annual Report on Form 10-K, as amended, and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, each of which has been filed with the Securities and Exchange Commission, which identify certain of these and additional risks and uncertainties. Any forward-looking statements made by us in this press release speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Investor Relations Contact
Ron Both
Managing Partner, CMA
Tel 1-949-432-7566
Read more: RGS Energy Issues Business Update – Net Sales...

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ET | Source: RGS Energy

DENVER, June 12, 2017 (GLOBE NEWSWIRE) -- RGS Energy (NASDAQ:RGSE), a residential and small-business commercial solar company since 1978, has been selected by Solarize Cranston, through a state-run program, Solarize Rhode Island, to bring solar electricity to home and business owners in Cranston, Rhode Island.

Solarize Rhode Island is a community supported discount buying program that uses tiered pricing, town supported education and outreach, competitively selected installers and access to flexible financing to dramatically reduce the cost of solar. The more residents sign up for the program, the more the cost comes down. The township of Cranston is the third largest city in the state, consisting of approximately 31,000 homeowners.

The following organizations will work together to provide marketing support for the campaign: RGS Energy, the Solarize Rhode Island Program Administrators, the Rhode Island Office of Energy Resources (OER), the Rhode Island Commerce Corporation’s Renewable Energy Fund, and SmartPower, a non-profit marketing firm dedicated to promoting clean energy and energy efficiency. The campaign began June 7 and will run through September 8.

“Solarize Rhode Island is an exciting program that has educated thousands of Rhode Island residents and facilitated almost 500 residents and business owners to make the decision to go solar,” said Shauna Beland, the Solarize Rhode Island Program Manager. “OER looks forward to working in Cranston with RGS Energy on continuing to provide solar education to Cranston residents.”

Karen Stewart, community outreach manager of SmartPower, noted: “Once again we are joining forces with RGS Energy to help increase the adoption of small-scale solar electricity to another Rhode Island community. In Rhode Island, RGS Energy has completed hundreds of solar installations, several of which are in Cranston. They can provide the type of efficiency and capacity that Cranston needs and this makes them an excellent fit for the Spring 2017 Solarize Cranston campaign. In addition, their marketing support and experience were key factors in the selection of RGS Energy as the preferred installer.”

RGS Energy Vice President of Sales Seth Wiggins commented: “We are honored to be chosen as the preferred installer on another Solarize Rhode Island campaign. For nearly four decades, we have been helping homeowners and businesses reduce their electricity costs with sustainable, renewable solar power. In fact, this solarize program marks the 41st time in our history we have been awarded a community solarize campaign. We believe that this may have the potential to be our most successful Solarize Rhode Island program to date.”

To learn more about the Solarize Cranston campaign, visit http://solarizeri.com/.

About RGS Energy
RGS Energy (NASDAQ:RGSE) is America’s original solar company, installing more than 25,000 residential and commercial solar power systems since 1978. RGS Energy makes it convenient for customers to save on their energy bill by providing turnkey solar solutions - from system design, construction planning, and customer financing assistance to installation, interconnection and warranty.

For more information, go to RGSEnergy.com, or connect with the company at www.facebook.com/rgsenergy or www.twitter.com/rgsenergy. Information on such websites is not incorporated by reference into this press release.

RGS Energy is the company’s registered trade name, and files periodic and other reports with the Securities and Exchange Commission under its corporate name, Real Goods Solar, Inc.

Forward-Looking Statements and Cautionary Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, including statements regarding the RGS Energy’s results of operations and financial positions, and RGS Energy’s business and financial strategies. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they provide our current beliefs, expectations, assumptions, forecasts, and hypothetical constructs about future events, and include statements regarding our future results of operations and financial position, business strategy, budgets, projected costs, plans and objectives of management for future operations. The words “expect,” “believe,” “plan,” “future,” “may,” “will,” and similar expressions as they relate to us are intended to identify such forward-looking statements.

Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. Therefore, RGS Energy cautions you against relying on any of these forward-looking statements.

Key risks and uncertainties that may cause a change in any forward-looking statement or that could cause our actual results and financial condition to differ materially from those indicated in the forward looking statements include: the level of demand for RGS Energy’s solar energy systems; our ability to generate sales and make installations under the Solarize Rhode Island program and to assist residents of the Town of Cranston to help achieve their renewable energy objectives . You should read the section entitled “Risk Factors” in our 2016 Annual Report on Form 10-K, as amended, which has been filed with the Securities and Exchange Commission, which identify certain of these and additional risks and uncertainties. Any forward-looking statements made by us in this press release speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Investor Relations Contact

Ron Both
Managing Partner, CMA
Tel 1-949-432-7566
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