Danish Greentech loss expands in Q2 2011 on increased costs

Aug 29, 2011 - Danish wind-farm manager Greentech Energy Systems A/S (CPH:GES) said today its net loss deepened 53% on the year in April-June 2011 on the back of an increase in production, administrative and financial expenses.

The net loss landed at EUR 1.4 million (USD 2m) against EUR 935,000 a year earlier.

Although revenue rose 124% on the year to EUR 5.2 million, production costs grew by the same percentage to EUR 3.8 million. Administrative expenses grew by 33% to EUR 1.4 million, which resulted in an operating loss of EUR 258,000 against EUR 499,000.

Financial costs increased further by 74% to EUR 1.4 million, leading to a deepening of the net loss.

In the first six months of the year, revenue doubled to EUR 10.5 million and operating loss shrank to EUR 71,000 from EUR 1.7 million. The net loss narrowed to EUR 1.4 million from EUR 1.9 million a year earlier.

Following the merger with Italian GWM Renewable Energy II SpA (GWM RE II), completed on August 11, Greentech upgraded its outlook for the full 2011 for revenue of EUR 50-55 million against former EUR 21-24 million, and earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 18-21 million, versus previous EUR 15-18 million.

(EUR 1.0 = USD 1.451)

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