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Engie Eps backs away from 2020 revenue guidance amid coronavirus

Solar-plus-storage plant. Source: Engie Eps

March 20 (Renewables Now) - Engie Eps SA (EPA:EPS), a specialist in the fields of energy storage, microgrids and eMobility, on Thursday reported a widening of its full-year net loss and announced its decision to not confirm the previously made 2020 revenue forecast.

The company, which is majority owned by French utility Engie SA (EPA:ENGI), posted a net loss of EUR 14.6 million (USD 15.7m) for 2019 compared to EUR 8.7 million a year earlier. During 2019, Engie Eps discontinued all non-core activities, including its hydrogen business line, as part of a refocusing under its Long Term Strategic Plan. Net of those activities, last year’s loss was EUR 11.1 million.

Full-year total revenues and other income rose to EUR 20.2 million from EUR 15.7 million, but that increase was insufficient to offset the higher operating expenses, with gross margin also declining to 26.5% from 30%. The 2019 result before interest, tax, depreciation and amortisation (EBITDA) was a loss of EUR 5.7 million compared to a deficit of EUR 4.6 million a year back.

At EUR 29.5 million, the company’s project backlog was down 18% compared to the revised figure communicated in June 2019, the reason being a reduction in order intake because of a number of significant projects that were either delayed or not awarded. At the same time, its pipeline surged by 127% over the same period, reaching EUR 686 million. Engie Eps, though, noted that the pipeline includes a solar-plus-storage award in Guam that is likely to be delayed further.

In June 2019, the company announced a revised revenue guidance of EUR 40 million for 2020 and EUR 100 million for 2022. It said on Thursday that it cannot confirm the 2020 forecast because of the missed or delayed projects and the COVID-19 outbreak. Engie Eps is particularly hit by the coronavirus pandemic because, while the firm is registered in Paris, its operations and most of the supply chain are based in Italy. In particular, the company has two industrial premises in the region of Lombardy, which has been placed under quarantine.

If needed, Engie Eps will update the 2022 guidance once the COVID-19 situation has been overcome. It is still fully committed to the Long Term Strategic Plan and the previously announced 2025 revenue indicative ambition of EUR 400 million.

(EUR 1.0 = USD 1.073)

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