Press release
A difficult first half
but a new impetus is finally beginning!
Elms, October 27, 2022
-
Difficult results
-
Uncontrolled disputes
-
A reorganization that will allow the Group to finally take off again
The Board of Directors, which met on October 27, approved the half-year accounts for the year.
|
In M€ |
1 |
1 |
|
Turnover |
6,48 |
6,53 |
|
Other exploitation products |
(0,68) |
1,09 |
|
Consumed purchases |
(2,78) |
(2,05) |
|
Staff costs |
(4,34) |
(5,09) |
|
Other operating expenses |
(1,96) |
(2,83) |
|
Dues and taxes |
(0,06) |
(0,19) |
|
Depreciation and provisions |
(0,44) |
(0,22) |
|
Operating result |
(3,78) |
(2,76) |
|
bottom line |
0,25 |
(0,16) |
|
Current result before tax |
(3,53) |
(2,92) |
|
exceptional result |
0,01 |
(0,01) |
|
Income taxes |
(0,54) |
0,05 |
|
Share attributable to minority shareholders |
– |
– |
|
Group net income |
(4,06) |
(2,88) |
Note: the consolidated half-year accounts have not been audited
First-half revenue: €6.48 million (€6.53 million in 2021)
The first half of 2022 took place in a generally complicated context with the war in Ukraine which disrupted the world market in addition to the problems linked to the COVID-19 epidemic, with significant direct and indirect consequences for the Group which have weighed on the activity.
The Group has decided to make its revolution and develop a clear, honest and sustainable strategy. In terms of activity, the order book in particular allows the Group to envisage a year 2023 of intense reorganization and renegotiation with its banking partners.
As of December 31, 2021, the Group had an order book of €38.3 million, including €30.1 million relating to EPC projects in Asia Pacific and Africa, €8.1 million corresponding to maintenance activities ( O&M), and finally other small contracts for photovoltaic installations.
In the first half of 2022, VERGNET signed more than €40 million in new orders, including €32.5 million solely for EPC projects. This commercial development was supported, for export projects, by the banks BGFIBank, Banque de l’Orme (Caisse d’Epargne) and BCI in New Caledonia.
It is worth highlighting the support of the BPI with a line of 9 million Euros, in counter-guarantees for export projects (Niger and Micronesia).
Thus the outstanding amount of bank guarantees as of June 30, 2022 was €10.3 million (multiplied by 5 since the end of 2021), including €8 million for the Agadez project and €1.4 million for the Micronesia projects.
In addition to maintenance activities, the main contracts signed in the first half are as follows:
-
Amendment to the AGADEZ contract (Niger) which enabled a significant increase in VERGNET’s share of turnover in the consortium by €15 million compared to the original contract and the start of construction in May.
-
Two hybrid projects in Micronesia (Yap Kosrae) for the installation of 4 MWp of photovoltaic solar power plants and 2.5 MWh of battery energy storage system.
The two contracts, with a total value of 6.3 million euros, entered into force on July 12, 2022 for delivery in 2024.
-
The repowering of 34 wind turbines at the PRONY 3 and Mont Mau power plants in New Caledonia for the ENGIE Group for an amount of €11.3 million, contract entered into force on 1
is
July 2022.
A half-year result (-€4.06 million) consequences of uncontrolled decisions
The consolidated half-year result stands at -€4.06 million.
The causes of these losses are multiple:
-
The sub-activity:
Traditionally, the Group’s first half generates revenue of around €6 million, which is insufficient to cover its overheads. However, the new Management has, since July, embarked on a very intense reorganization which will bear fruit in 2023.
-
Litigation turns out to be a financial failure:
This is particularly the case with the arbitration brought before the ICC in Geneva to obtain payment of invoices from an Ethiopian client who rendered a decision that was apparently favorable for VERGNET, since the ICC in Geneva granted the company 600,000 €, but far removed from the forecasts of the former management of VERGNET. The litigation costs incurred without any discernment have put VERGNET on a very uncertain financial path with which the new management will therefore have to come to terms.
The 3R plan and the financing of NEGMA, the renewal
The 3R Plan (Renewal. Revitalization. Reconquest) was communicated on September 26, 2022. It was born from the need to immediately strengthen cash and to implement an offensive and sustainable development strategy over time.
It aims to repay short-term debts and rapidly strengthen business development. To do this, the strategy of the new management consists in reconnecting with the DNA of VERGNET, which since the origin of the company has contributed to enabling its customers to control their energy production, despite difficult geographical and climatic conditions. even extreme. Consequently, the new speech affirms loud and clear the mission of VERGNET: that of being a “virtuous creator of energy independence since 1989” by proposing in particular a new high-tech offer.
Second lever of the 3R Plan: a new global organization, by Region (Europe, Africa Indian Ocean, Asia Pacific, Americas), was set up and presented to the Group’s teams on September 15, 2022.
Third lever: the OCABSA contract, negotiated during the summer of 2022 with NEGMA, was signed on September 23. It will enable the Group to raise up to €100 million over 6 years to finance this new strategy, its development and the actions necessary to establish VERGNET as an indisputable benchmark in the renewable energy market.
Fourth lever: an acceleration of construction sites under the impetus of the new Director of Operations, an approach which is beginning to bear fruit. In Wallis, for example, where VERGNET has opened a subsidiary, the Group is completing the installation of three photovoltaic power plants on roofs connected to the LV network for self-consumption which will be commissioned before the end of the year and which, in accordance with the mission of VERGNET, will contribute to the energy independence of the population and to the development of the island.
This ambitious and realistic 3R plan is made possible by the financial support of NEGMA, in which VERGNET has found a solid and coherent partner in order to exploit the company’s development potential in a dynamic and buoyant renewable energy market. .
About VERGNET SA
The VERGNET Group, “a virtuous creator of energy independence since 1989”, has never ceased since its inception to enable its customers to control their energy production, despite difficult or even extreme geographical and climatic conditions.
Expert in the production of renewable energies (wind, solar, hybrid) on non-interconnected networks and armed with unique technologies, the Group has developed the Hybrid Wizard, a hybrid system controlling in real time the share of renewable energies injected into the electrical network by guaranteeing operational safety and security for island or isolated networks.
The Group has already installed more than 900 wind turbines and 365 MW of all energies combined. It is present in more than 40 countries and has 200 employees in 12 locations.
VERGNET has been listed on Euronext Growth since June 12, 2007.
CONTACT
Group VERGNET
Cyril LEDRAN
General director
investors@vergnet. com
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– Press release on accounts, results
Full and original press release in PDF format:
https://www.actusnews.com/news/76959-cp-27-10-2022-resultat-semestriel.pdf
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