Etrion Corporation, a solar independent power producer, has released its financial results for the third quarter of 2015. Due to low price in Italy market and low exchange rate between USD/EUR, the company’s revenue slightly dropped from the prior quarter.

During the three months ended September 30, 2015, Etrion reported a net loss of US$4.4 million (loss per share of US$0.009) compared to a net income of US$1.2 million (earning per share of US$0.004) for the comparable period in 2014. Despite negative consolidated net results, primarily attributable to lower electricity prices, exchange rates and the impairment of US$0.4 million in capitalized development costs, the Company reported a gross profit of US$7.2 million (2014: US$10.0 million) and generated adjusted operating cash flow of US$10.5 million (2014: US$17.8 million).

During the nine months ended September 30, 2015, Etrion reported a net loss of US$16.9 million (loss per share of US$0.042) compared to a net loss of US$8.4 million (loss per share of US$0.026) for the comparable period in 2014. The net results during this period were adversely impacted by lower electricity prices, exchange rates and the impairment of capitalized development costs.

The company’s managing team is also updated. Tom Dinwoodie has resigned from the board of directors and it is effective immediately. On the other hand, the company has appointed Paul Rapisarda as Chief Financial Officer and was effective on November 16.

Financial Highlights

• Revenue: Generated revenues of US$15.9 million (2014: US$17.1 million) and US$43.4 million (2014: US$43.3million) during the three and nine months ended September 30, 2015, respectively.
• EBITDA: Recognized earnings before interest, taxes, depreciation and amortization (“EBITDA”) of US$10.0 million (2014: US$13.2 million) and US$24.8 million (2014: US$31.2 million) during the three and nine months ended September 30, 2015, respectively.
• Cash and Working Capital: Closed the third quarter of 2015 with a cash balance of US$73.6 million (December 2014: US$95.3 million) and positive working capital of US$53.1 million (December 2014: US$36.5 million).
• VAT Reimbursement: Fully repaid Project Salvador’s total outstanding VAT credit facility of US$24 million five months ahead of schedule following cash reimbursement from the Chilean tax authorities for VAT credits accumulated during construction.

Operational Highlights

• Production Italy: Produced 34.6 million (2014: 34.6 million) and 88.4 million (2014: 86.5 million) kWh of solar electricity during the three and nine months ended September 30, 2015, respectively, from the Company’s 100%-owned 60MW portfolio comprising 17 solar power plants in Italy.
• Production Chile: Produced 36.5 million (2014: nil) and 113.2 million (2014: nil) kWh of solar electricity during the three and nine months ended September 30, 2015, respectively, from the Company’s 70%-owned 70 MW Salvador solar power plant in Chile.
• Production Japan: Produced 2.6 million (2014: nil) and 3.2 million (2014: nil) kWh of solar electricity during the three and nine months ended September 30, 2015, respectively, from the Company’s 87%-owned 9.3 MW Mito solar power project, comprising five solar power plants in Japan.
• Operations and Maintenance (“O&M”): Renegotiated the various O&M agreements with ABB, SMA and SunPower for the Company’s 60 MW portfolio in Italy to reduce expected costs by approximately US$1.6 million per year while increasing the level of service.