Etrion sees higher-than-expected revenue, earnings in 2018

Thanks to the strong performance of its Japanese assets, independent solar power producer Etrion SA (TSE:ETX) could end 2019 with better-than-expected earnings and revenues, the company said today.

The Japan-focused firm projects that its full-year results will be at the high end of its earlier guidance, or even exceed it. Etrion in March guided for 2018 project-level earnings before interest, tax, depreciation and amortisation (EBITDA) of between USD 8.7 million (EUR 7.7m) and USD 9.6 million on revenues of USD 12.9 million-14.3 million. Power generation was seen to range between 37.5 GWh and 41.5 GW.

The improvement on the Japanese markets reflects the grid-connection of the 13.2-MW Komatsu photovoltaic (PV) park in Ishikawa prefecture and the increased output of Etrion’s solar parks due to the higher irradiation levels. A drop in operating costs also contributed to the company’s enhanced performance as of end-November, CEO Marco A Northland, explained.

Last week, Etrion said it sees the newly introduced solar project deadlines in Japan as an opportunity to come to the rescue of affected projects, and not as a threat to its own pipeline. The new rules envisage a reduction of secured feed-in tariffs (FiTs) for projects contracted in 2012, 2013 and 2014 but not making progress.

(USD 1.0 = EUR 0.880)

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