Electro Power Systems accelerates development and strengthens its management team to support growth
Paris – Milan, 20 September 2016 – The Board of Directors of Electro Power Systems S.A. (“EPS”, or the “Group”), a pioneer in technology for clean-energy storage solutions, chaired by Massimo Prelz Oltramonti, has examined and approved its Half-Year 2016 Financial Report.
FINANCIAL OPERATIONAL HIGHLIGHTS
In the first half of 2016, the Group’s consolidated revenue was € 2.615.517, compared to € 198.429 in the first half of 2015. The Group’s backlog of orders is equal to € 6.0 million, and its project pipeline conversion rate increased to 10%.
Growth in sales, orders backlog and project pipeline are mainly due to the Group’s development strategy focus, since 2015 second half, in:
- 1. emerging countries through hybrid systems (Hybrid Energy Storage System – HyESS) that use only renewable sources and storage technologies to generate energy at low cost; and
- 2. developed markets, through strong technological partnerships and credentials with Enel, Toshiba, Terna and General Electric.
The Group’s development strategy places 80% of the project pipeline in Africa and Asia, where, even before the planned commercial and service network on the territory is built, the low-cost hybrid energy solutions proposed by the Group have sparked strong interest.
Thus, EPS entered an agreement with Necsom in Eastern Africa to begin the second phase of an innovative power plant in the Horn of Africa. This hybrid power plant, located in Garowe, in Somalia’s Puntland state, powered by solar and wind turbines in addition to traditional generators, by storing energy, will be able to transform intermittent renewable sources installed by the Group into a stable power source, saving more than 1 million litres of diesel yearly and cutting electricity bills by 17%.
The first half of 2016 financial results show a gross margin of € 1.092.368, representing 42% of the Group’s consolidated revenue, confirming the Group’s business and technology profitability. In alignment with its recent emphasis on development strategy and growth, the Group’s staff and operating costs have increased to € 1.830.867 and € 1.279.589, respectively, mainly as a consequence of the 2016 first half acquisition of Elvi Energy, which has played a pivotal role in executing the Group’s new strategy.
At the end of the first half of 2016, the Group’s net financial position was € 2.807.968, compared to € 8.285.208 as of 31 December 2015, mainly due to increases in working capital caused by a jump in orders backlog and to investments in research and development aimed to implementing both the HyESS and the hydrogen module.
Certification testing of the hydrogen module integrated with HyESS was successfully completed in July, after tests conducted by leading international laboratories. First commissioning of the system has been planned in Chile with a global utility.
To further support its growth, in July 2016, the Group received a short-term credit line of € 0.5 million from Unicredit, to provide additional working capital and a medium-long term credit line of € 2 million mainly dedicated to EPS’s development plan. The relevant facility agreements were entered on 19 September 2016 and the medium-long term credit line has been drawn down on the same date.
As of 30 June 2016, little more than a year after its IPO on the regulated market, the Group had installed 46.3 MWh of energy-storage systems and 8.6 MW of hybrid power plants in 21 countries, in projects involving high profile clients and strategic partners including Terna, Enel, Necsom, Toshiba and General Electric.