Vergnet issues profit warning

French renewable energy producer Vergnet (EPA:ALVER) today warned that it would not meet its profitability targets for 2016.

The company said its solar power project in Osun, south-western Nigeria, will be delayed and income from it will be booked in the first quarter of 2017, not in the fourth quarter of 2016, as initially previewed.

Vergnet today reported a net attributable loss of EUR 2 million (USD 2.18 m) for the first half of 2016, narrowed from EUR 2.8 million in the corresponding period a year earlier.

Operating loss shrank to EUR 1.4 million from EUR 2.7 million as revenue grew to EUR 14.2 milllion from EUR 12.5 million.

Business activity during the period in review was marked by the commissioning of the solar parks in Pohnpei, the hybrid solar power plant in Kiribati in the Pacific, the Amdjarass wind power plant in Chad, and the sale of 8 machines in Italy and Northern Ireland. The group also installed 128 solar pumps in Niger.

Vergnet reported negative equity of EUR 2.2 million, financial debt composed of EUR 6.4 million in convertible bonds and EUR 2.7 million in bank debt and a net cash position of EUR 2.35 million at June 30, 2016.

In September, the company announced the establishment of a line of equity financing for the purpose of covering its working capital requirement.

Under the agreement, Kepler Cheuvreux, committed to buying a maximum of 3,100,000 shares, representing approximately EUR 4.5 million at current share prices) on its own initiative and over a period of no more than 24 months.

(EUR 1 = USD 1.089 )

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