DGAP-News: Global EcoPower S. A.: Encouraging results for the first semester 2011

DGAP-News: Global EcoPower S. A. / Key word(s): Half Year Results
Global EcoPower S. A.: Encouraging results for the first semester 2011

13.10.2011 / 08:30

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Encouraging results for the first semester 2011

For the first financial year of production and during the International 
crisis, the  Global Eco Power group, based in Aix en Provence, recorded
encouraging results for the period to June 30th 2011, with a turnover of
Euro 13 million and EBITDA of more than Euro 2 million. GEP constructed
turnkey PV greenhouses representing 3.5 MWp and assisted a German group to
construct a power ground-mounted station of 5 MWp. As an intermediary of
growth, and taking into account changes recently introduced in the French
solar industry, GEP is evaluating whether its plans should include the
export of its know-how.

(*) EBITDA= Operating income + depreciation

Jean Marie Santander, CEO of GEP: 'The results of the first semester 2011
illustrate the founders' competences and know-how.  I am proud of the job
fulfilled by our small, cohesive and competent team.  The financial year
2011 is already successful in term of turnover and the operational result,
and we are preparing for the following financial year.  Based on our strong
past experience, we are going to follow an ambitious but logical
development, and we are confident about the growth perspectives, in spite
of a very current disadvantageous French regulatory environment in the
photovoltaic sector. '

 1. Interesting first  half result

Global EcoPower (GEP) sales amounted to Euros 12.95 million for the first
half of 2011 compared to 0.11 million Euros for the full year 2010.

  - The turnkey construction activity contributed Euros 11.04 million
    thanks to construction progress of the project located in Bourgneuf en
    Mauges on June 30th, 2011.

This project in Maine and Loire consists in construction by GEP on behalf
of the German group Leonidas Associates of 55 000 m² of PV greenhouses for
an installed capacity of 3.49 MWp.  The plant is already connected to ERDF
grid and will start producing in late October.

  - Development and Project assistance activities contributed sales of
    Euros 1.9 million, thanks to progress on the project located in Veules
    les Roses.  This project in Seine-Maritime comprised construction of a
    ground-mounted photovoltaic plant to generate an installed capacity of
    5.03 MWp, and the plant started operating on October 7th.

GEP has developed the project and signed with the German group Leonidas
Associates a contract for management and assistance during the construction
phase.  In order to meet the strict deadlines required by the moratorium,
GEP has awarded the turnkey construction contract to the company Martifer
Solar.

The progress in the construction of these two projects can be found on the
company blog at the following address
http://www.global-ecopower.com/gepblog.

2. Strong profitability in the first significant year*

 With 2011, being the first financial year , EBITDA rose sharply and
amounted  to Euros 2.14 million in the first half of 2011 compared to a
negative contribution of Euros 1.03 million over the full year 2010, when
GEP was exclusively focused on the development of its projects.

Net profit amounted to Euros 2.07 million in the first half, compared to a
loss of Euros 1.21 million over the full year 2010.

*Unaudited 2011 key performance data is:
< tabel_start>
(Thousands of Euros)  June 30th 2011 (first half)   December 31th 2010
                                                           (full year)

Turnover              12 955                              107

EBITDA (*)              2140                            (1033)

Operating income        2135                            (1047)

Financial result        (60)                             (162)

Net result              2073                            (1210)
</pre>
(*) EBITDA= Operating income + depreciation

Shareholders' equity amounted to Euros 39.36 million on June 30th 2011.  As
a reminder, an impairment test was conducted in 2009 and 2010 to give a
value of Solar EcoPower (SEP), at December 2010 of Euros 40.8 million.  The
valuation methodology of the portfolio expressed in MWp the average gross
margin per MWp.  As per June 30th 2011, no further impairment test was
conducted, but there are indications of loss of value, resulting from
implementation of the moratorium in late 2010, and the discouraging
conditions of the tender offers in the photovoltaic sector in France, which
put at risk the sustainability of the projects under development.  Many of
these projects could be dropped which might lead to a significant provision
for the value of SEP at year end. In this event, there would be a zero cash
impact on the group.  A meeting of the Board of Directors will nevertheless
be convened in order to decide which projects under development will be
continued.

3. Outlook

Considering actual uncertainties in the French solar industry in France,
GEP is already prospecting the Romanian market for new solar projects and
is considering other growth drivers in this sector.


End of Corporate News

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