Solar independent power producer Etrion Corp (TSE:ETX) booked higher EBITDA and net profit in the third quarter of 2020 thanks to the sale of a Japanese solar project, it said today.
The Switzerland-based company closed the July-September quarter with earnings before interest, taxes, depreciation, and amortisation (EBITDA) of USD 31.7 million (EUR 26.9m), up from USD 944,000 a year before. The significant improvement, it explained, came as a result of the Mie solar project’s sale to Ziva Energy, which provided Etrion with JPY 4.4 billion (USD 41.8m/EUR 35.4m).
Third-quarter net profit stood at USD 26.8 million, as compared to USD 1.6 million a year earlier. More details can be seen in the table.
| Figures in USD |
Q3 2020 |
Q3 2019 |
9mo 2020 |
9mo 2019 |
| EBITDA from continuing operations |
31.7m |
944,000 |
30.4m |
36,000 |
| Net profit (loss) from continuing operations |
26.8m |
1.6m |
23.8m |
(1.2m) |
| Revenue from discontinued operations |
6m |
6.4m |
17.4m |
18.3m |
| EBITDA from discontinued operations |
4.8m |
5.3m |
13.9m |
14.1m |
| Net profit from discontinued operations |
1.2m |
1.6m |
3.3m |
2.8m |
| Electricity production (MWh) |
17,028 |
18,359 |
50,031 |
53,235 |
At the end of September, the Swiss firm had a portfolio of 11 solar parks in Japan with a combined capacity of 57 MW, which generated 17,028 MWh of electricity in the three months. The output was in line with forecast but registered a drop in annual terms as compared to the 18,359 MWh in the year-ago period. The decrease was caused by lower irradiation levels.
Etrion noted that its operations have not been negatively affected by the COVID-19 situation. The company is carrying out a process to enhance its Japanese corporate structure that includes a plan to offload the 57-MW operating portfolio and a 45-MW solar park under construction.
“On the operational side, our solar plants continue to deliver steady revenues and EBITDA with positive results. On the corporate side, we are making significant progress on the sale process of our Japanese portfolio which has raised strong institutional demand,” said CEO Marco A Northland.
Binding offers for the Japanese assets have already been received and more are expected by year-end. Depending on the final bids, Etrion said it will determine whether to proceed to close the proposed sale by the end of 2021’s first quarter.
(USD 1.0 = EUR 0.848)
(JPY 100 = USD 0.949/EUR 0.805)
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