Falck Renewables swings to small pre-tax profit in Q3
Wind turbine. Author: Martin Cathrae. License: CC BY-SA 2.0
Italy's Falck Renewables SpA (BIT:FKR) today reported a pre-tax profit of EUR 374,000 (USD 407,000) for the third quarter of 2016, against a loss of EUR 4.6 million in the prior-year period.
Revenues declined slightly and earnings before interest, tax, depreciation and amortisation (EBITDA) inched down to EUR 24.5 million. The company highlighted an improvement in its EBITDA margin to 47.9% from 47.3% in the third quarter of 2015.
Chief executive Toni Volpe described the quarter as "very positive", showing a significant improvement over a year ago, thanks to the contribution of new assets, cost-containment measures and a more active approach to energy management.
In the first nine months of 2016, pre-tax profit declined to EUR 17 million from EUR 18.7 million as revenues fell 10% to EUR 179.9 million, brought down by a reduction in average electricity sales prices in Italy, Spain and the UK and the devaluation of the sterling. The company, however, said there are signs of growth in prices in the final quarter of 2016. It confirmed its guidance for 2016 EBITDA of EUR 130 million subject to production meeting expectations.
Falck Renewables has 760 MW of installed capacity, excluding minority shares, which consists mostly of wind farms. It plans to unveil a new business plan later this month dealing with the changing market environment.