SECHILIENNE - SIDEC : Net profit (Group share) for the first half of 2008 up 11.6%
Vendredi 29 août 2008 / 7h22
Press release
Paris - 29 August 2008, 7.00a.m.
Net profit (Group share) for the first half of 2008 up 11.6%
Mr. Nordine Hachemi succeeds Mr. Dominique Fond as Chairman and Managing Director
* * *
Key financial data for H1 2008
At the Board of Directors meeting held on 28 August 2008, the Directors of Séchilienne-Sidec approved the consolidated accounts for the first half of 2008.
Operating profit came out at E41.1 million, up 11.6%, and net profit (Group share) totalled E22.6 million, an increase of 11.6% compared to the first half of 2007.
Simplified consolidated income statement
(Under IFRS - in E millions)
30.06.2007
30.06.2008
Change
Consolidated Sales
110.1
130.6
+18.6%
Operating profit
36.8
41.1
+11.6%
Net profit
23.7
27.1
+13.9%
Net profit (Group share)
20.3
22.6
+11.6%
Over the second half of the year, the Group's turnover should fully reflect the commissioning of new production units as well as the start of construction for new projects.
Appointment of Mr. Nordine Hachemi
At the Board of Directors meeting, Mr. Dominique Fond resigned from all of his mandates at Séchilienne-Sidec Group. The Board of Directors recorded the decision expressed its gratitude to Mr. Dominique Fond for his key role at the Company's helm as well as for the quality of the Company's results and prospects.
Commenting on his decision, Mr. Dominique Fond declared: "As a new phase of the Group's development is now well underway, in line with the strategy approved by the Board of Directors and well understood by our shareholders, clients and partners, it appeared possible to hand the reins over to a new Chairman and Managing Director. I would like to express my thanks to all Group employees, with whom we have built over recent years a solid company which is well positioned to play a key role in the energy battles of tomorrow."
The Board of Directors then co-opted Director Mr. Nordine Hachemi as a replacement for Mr. Dominique Fond and appointed him Chairman and Managing Director of Séchilienne-Sidec. This co-optation by the Board of Directors is subject to ratification by the next Shareholders' Meeting. Mr. Dominique Fond becomes advisor to the Chairman.
Mr. Nordine Hachemi, 47, worked in commercial and development positions in Asia for six years before joining Bouygues Construction in 1994, where he managed the realisation of major international infrastructure projects. He then joined Saur Group in 2001 as Chairman and CEO of the Group's engineering subsidiary, Stéreau, before becoming Deputy CEO and then Chairman of Saur Group in 2006. He is a graduate of the Ecole Nationale Supérieure du Pétrole et des Moteurs (ENSPM) and holds an MBA from INSEAD.
Mr. Nordine Hachemi declared: "The power generation sector is undergoing a major transformation which is opening up significant opportunities for value creation. Against this backdrop, I am enthusiastically taking responsibility for Séchilienne-Sidec's destiny. With all of our employees, we will continue the development trend already underway and benefit fully from the Group's strong positions and competitive advantages on the high-growth renewable energy markets."
* * *
First half 2008 results
Simplified consolidated income statement
(Under IFRS - in E millions)
30.06.2007
30.06.2008
Change
Consolidated Sales
110.1
130.6
+18.6%
EBITDA
45.4
51.5
+13.4%
Operating profit
36.8
41.1
+11.6%
Financial profit
(8.5)
(9.4)
Share of profit from associated companies
1.9
2.0
Profit before income tax
30.3
33.8
+11.3%
Income tax
(6.6)
(6.7)
Net profit
23.7
27.1
+13.9%
Net profit (Group share)
20.3
22.6
+11.6%
Net profit (Group share) per share (in E)
0.74
0.81
Confirmed acceleration in solar energy development
- Séchilienne Sidec's industrial expertise in the management of complex projects is enabling rapid development in the Group's solar energy activity.
- Over the past 18 months, the Group has successfully developed a 406 MW pipeline, which has increased by 100 MW over the last six months.
- Installed capacity stands at 4.1 MW, following the commissioning of 2.2 MW over the first half of the year.
- The pipeline of projects under construction totals a capacity 23.1 MW, including 2.8 MW awaiting connection.
- Over the first half of the year, the Group has continued its roll-out in three target regions:
o French overseas departments: ongoing development, with a first building permit obtained for a large-scale plain field site in Martinique (12 MW) and the preparation of two plants of 12 MW each in Guiana.
o Mainland France: steady increase in land reserves and submission of first requests for building permits.
o Southern Europe: construction of 6.3 MW in Italy and Spain.
Thermal power plants: margin levels maintained
- Margins were maintained against a backdrop of increased commodity prices.
- Six new units are in project, totalling a capacity of 204 MW.
o The first step in the commissioning of a new 38 MW thermal power plant in Guadeloupe has begun, with the signing of a contract with EDF in the first quarter.
o Two other projects with a total capacity of 88 MW been agreed upon with EDF and are awaiting validation by the French energy regulation commission (CRE).
Wind power: a selective development strategy
- Current operating capacity is 32.5 MW, following the commissioning of the Niedervisse site (12 MW) at the beginning of the year.
- Pipeline capacity is 218 MW, including 10 MW under construction and 10 MW having obtained unappealable building permits.
Group results continue to progress
Consolidated sales at 30 June totalled E130.6 million, up 18.6%. This increase is due to:
o the impact of higher prices for raw materials on electricity sales prices
o the start up of new production units in 2007 and the first half of 2008.
It takes into account a negative scope effect of E5.9 million due to the impact of the expiry of the Rhodia contract for the Péage de Roussillon installation..
Thanks to solid performances by thermal power plants, EBITDA was up 13.4% to E51.5 million, slightly impacted by negative goodwill on the Group`s Spanish companies in the amount of E0.9 million.
Operating profit increased 11.6% to E41.1 million, compared to E36.9 million one year earlier.
Financial result went from -E8.5 million to -E9.4 million, following the decrease in financial profit after deposits in the amount of E34 million were recovered.
Profit from companies accounted for using the equity method was stable at E2.0 million.
Income tax totalled E6.7 million, representing a slightly lower tax rate of 21.1% versus 23.1% one year earlier.
Net profit (Group share) stood at E22.6 million, an increase of 11.6%.
A solid financial structure
At 30 June 2008, consolidated shareholders equity totalled E267.3 million, compared to E274.1 million at the end of December 2007.
Net debt came out at E448.5 million at 30 June 2008, versus E392.6 million at the end of 2007.
Excluding project and non recourse financing (E384.5 million), net debt came out at E64.0 million at 30 June 2008, versus E38.3 million at the end of 2007.
The Group obtained approvals for the financing of projects currently under construction for an amount in excess of E120 million.
In July, the Group refinanced its corporate debt in the amount of E100 million under very favourable conditions.
Prospects
Over the second half of the year, the Group's turnover should fully reflect the commissioning of new production units as well as the start of construction for new projects.
* * *
Upcoming dates:
SFAF meeting: presentation of interim results on Monday 1 September at 5.30 p.m. at the Hotel Bristol in Paris.
Third-quarter revenue: 12 November 2008.
Séchilienne-Sidec (ISIN : FR0000060402 - SECH) is an alternative energy producer that is 43.1% owned by Financière Helios. The Group builds and operates thermal, wind and solar power plants in Europe, the Indian Ocean and the Caribbean for a total operating capacity of 566 Megawatts at 30 June 2008.
