Steady double digit growth as of 30 September 2017: microgrids and utility-scale systems deployed globally
▪ Revenues over the first nine months increased by 64% to €6.6mln
▪ €16.3mln and 39.4MW of Order Intake increased the Orders Backlog by 122% to €12.9mln
▪ Gross margin at 37% of reported revenues; €8.9mln cash on hand heading into Q4
▪ Utility-scale storage systems and microgrids under commissioning in Europe, Latam and the Asia Pacific
▪ Sustained contract flow from the largest European utilities, mostly on a turnkey EPC basis
▪ New industrial footprint now sealed in compliance with ISO 9001, ISO 14001 and OHSAS 18001
Commenting on the figures, Carlalberto Guglielminotti, Chief Executive Officer of EPS, said:
“In the third quarter, we reaped the result of our effort over the past three years to affirm EPS as a leading player in decentralized energy solutions with a unique technology play to accelerate the energy transition. Orders from the largest European utilities have proven our technology leadership, competitiveness and strategic and industrial maturity.
We are delivering one of the largest installed bases of commercial microgrids and utility-scale systems globally, maintaining a high marginality level and strengthening our industrial footprint. This confirms the solidity of the Strategic Plan 2020 and enables the continuous deployment of our disruptive technology towards the highest levels of engineering excellence and
Paris – Milan, 31 October 2017 – The Board of Directors of Electro Power Systems S.A. (“EPS”), technology pioneer in energy storage systems and microgrids, listed on the French-regulated market Euronext Paris (EPS:FP), under the chairmanship of Massimo Prelz Oltramonti, approved the financial information (unaudited) and the installed base update for the nine months ended on 30 September 2017.
STRATEGIC AND FINANCIAL HIGHLIGHTS
Over the first nine months of the year we were awarded contracts and projects from Enel, Engie, Endesa, Terna, and Edison (EDF), among others, for projects to be delivered mostly on a turnkey Engineering, Procurement and Construction basis.
This sealed the international credibility of EPS Group as general contractor in the delivery of cutting-edge microgrids and energy storage solutions to leading utilities globally. The maturity of the new EPS industrial footprint and organizational platform to deliver on such landmark contracts has also been certified in compliance with ISO 9001:2015, ISO 14001:2015
and OHSAS 18001:2007.
Revenues as of 30 September 2017 were €6.6mln, up 64% compared to the €4.0mln reported at the end of September 2016. The continuous double-digit growth is driven by the successful deployment of microgrids in East Africa, Latin America and Asia-Pacific, coupled with the construction of utility-scale storage systems and grid connected solutions, mainly in Southern Europe.
Order Intake year-to-date increased to 39.4 MW for a contract value of €16.3mln, the highest level of Order Intake in our history and representing more than the total cumulative revenues over 2014, 2015 and 2016.
Orders Backlog at the date of this press release is at €12.9mln, up 122% based on reported figures in the same period of 2016. This growth is mainly represented by utility-scale storage systems and microgrids delivered by EPS on a turnkey basis, acting as a general contractor. The largest project under construction is the 20MW energy-storage system with Endesa, which is expected to be commissioned and online by Q2 2018. This project would be in the top 20 of the largest liion energy storage systems ever commissioned in the world4. Backlog of orders includes utility-scale storage systems and microgrids with global utilities, smart islands with national grid operators and control systems for mobility and distribution applications.
The main regions of installation are Southern Europe, Sub-Saharan Africa, the Middle East, Latin America and Asia Pacific.
Gross Margin stands at 37% of the reported revenues of the period, which is substantially stable despite the double-digit growth, confirming the sustainability of the EPS business model and the path towards profitability.
Cash Position at the end of September 2017 amounted to €8.9mln, up 62% compared with €5.5mln at the end of the same period in 2016, particularly thanks to the financial support of the European Investment Bank.
Net Financial Position, is equal to €-7.2mln compared to €-1.0mln as of 31 December 2016, mainly due to the continuous growth of the Orders Backlog and related working capital needs. More particularly, the change in working capital was €3.0mln, increasing significantly compared to the end of 2016.
INSTALLED BASE HIGHLIGHTS
▪ 20MW Utility-Scale Storage System in Spain under construction: upon signing the agreement with Endesa on 5 September 2017, the Spanish utility part of the Enel group, EPS immediately started construction of the utility-scale storage system, with a power capacity of 20MW, expected to be commissioned and online by Q2 2018.
▪ 12MW microgrid in Australia online: on 10 October 2017 EPS started operations at the storage system related to the Coober Pedy Renewable Hybrid Power Project’s microgrid in Coober Pedy, Southern Australia. The hybrid power plant will be connected to a microgrid composed of 1MW solar panels, 4MW wind turbines and up to 6MVA generators combined with 1MW of storage system and will be able to cover up to 70% of the demand, supplying the inhabitants of the area – about 1,600 people – with energy from renewable sources for the 20-year life of the hybrid power plant.
▪ 5.9MW microgrid in the Horn of Africa commissioned: on 22 July 2017, EPS commissioned a microgrid awarded by NECSOM (National Electric Corporation of Somalia) composed of a solar, wind and storage turnkey solution that allows the reduction of diesel consumption by 1mln litres per year, and reduces electricity bills by 17%.
▪ World’s first 100% emission-free microgrid in the Atacama Desert (Chile) began operations: on 1 June 2017, Enel and EPS announced the operation of the world’s first 100% emission-free “plug-and-play” commercial-sized micro-grid, powered by solar PV as well as hydrogen-based and lithium-based storage.
▪ 4.1MW microgrid in the Maldives outperforming expectations: on 8 February 2017, EPS announced the performance results of its second microgrid in the Maldives and confirms the reduction in CO2 and that renewables, coupled with the EPS storage system, cover up to 63% of the resort’s power requirements, enabling reductions in diesel consumption by 423,000 litres per year, 50% more than expected at the time of commissioning.
▪ 3MW microgrid in Flinders Island commissioned: on 15 February 2017, EPS announced the commissioning of a hybrid storage system, in partnership with Toshiba, sired to Flinders Island’s microgrid for Hydro Tasmania, Australia’s largest producer of renewable energy.
▪ 1.5MW microgrid in Sardinia commissioned: on 22 February 2017, EPS announced the realisation of an energy storage system microgrid for ENAS in Sardinia. The system is connected to the Ottana Experimental Solar Farm, which consists of a concentrated solar power (CSP) farm, integrated with thermal storage that has a capacity of 14MWh as well as a concentrated photovoltaic plant (CPV).