Jul 19, 2012 - Swedish wind farm developer Arise Windpower AB (STO:AWP) said today it slipped to a net loss of SEK 6 million (USD 865,000/EUR 704,000) in the second quarter of 2012 due to increased depreciation and financial costs.
In the same period last year, the company booked a bottom-line profit of SEK 1 million.
Arise Windpower registered an increase in net sales during the second quarter, to SEK 46 million from SEK 40 million, but this was outweighed by higher depreciation and financial costs. Consequently, earnings before interest and tax (EBIT) rose to SEK 12 million from SEK 9 million but the bottom line showed a loss.
As announced earlier this month, second-quarter electricity production surged by 47.5% year-on-year to 70.8 GWh, which was in line with expectations. During the period Arise Windpower achieved a relatively high average income of SEK 648/MWh versus the market price of SEK 401/MWh for electricity and electricity certificates. This was a result of favourable price hedging, the company said.
Apart from the second quarter being normally poor from a wind energy perspective, the bottom-line result was also affected by record-low spot prices for electricity and electricity certificates that had not been hedged, Arise Windpower said.
(SEK 1.0 = USD 0.144/EUR 0.117)
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