Phoenix Solar: Positive EBIT result for the first time in several years

Tim P. Ryan, Group CEO at Phoenix Solar AG, stated: "Our revenues grew at a reasonable rate in 2016 and for the first time in several years we are able to report a positive EBIT result, with cost controls, supply chain efforts and absolute discipline on project margins being the main contributors. As an international provider of turnkey services for the design, procurement and construction of commercial solar photovoltaic power plants, we were again able to demonstrate to our customers and the market our ability to deliver high-quality utility-scale and commercial rooftop solar generators on-time and on-budget around the world. Moreover, we have laid the foundation for continued strong growth and profitability going forward with significant investments in our team, processes and various operating companies. With a competitive technology, strong track record in the global markets, an experienced team and growing markets, I remain very confident that 2017 will become an even more successful year for our company and that we will fulfill the expectations of the markets, our customers and our shareholders." Overall, Phoenix Solar improved gross margins (sales revenues less cost of materials) from 8.4 percent in 2015 to a much stronger level of 12.6 percent for the full year 2016. This is a direct reflection of systematic improvements and investments made in 2016 in both our global supply chain team and process as well as in the area of estimating and bidding, a press release states. Earnings before interest and taxes (EBIT) improved to EUR 0.6 million (2015: EUR -1.6 million), the first positive operating result since 2010. The EBIT margin as a percentage of sales amounted to 0.4 percent in 2016 (2015: -1.3 percent). The net financial result of EUR -4.3 million in 2016 was slightly better than in the previous year (2015: EUR -4.4 million). Financial income of EUR 293k (2015: EUR 98k) was offset by financing expenses of EUR 4.6 million (2015: EUR 4.5 million). The consolidated net result for the period attributable to shareholders stood at EUR -4.6 million (2015: EUR -5.2 million). A consolidated net loss of EUR 0.1 million was attributable to minority interests (2015: EUR -0, 4 million). The free order backlog as of December 31st, 2016 was at EUR 55.8 million (December 31st, 2015: EUR 148.5 million). The Group's total order book position (including sales revenues already invoiced) amounted to EUR 186.4 million as of December 31st, 2016, a reduction of EUR 65.5 million, or 26 percent (December 31, 2015: EUR 251.9 million). The Phoenix Solar Group achieved a net cash inflow from operating activities of EUR 0.1 million in 2016 (2015 EUR 1.8 million). The Group's cash and cash equivalents improved to EUR 9.4 million in the 2016 financial year (December 31st , 2015: EUR 4.9 million). The net debt position (non-current financial liabilities less cash and cash equivalents) was reduced significantly and amounted to EUR 25.9 million as of December 31st, 2016 (December 31st, 2015: EUR 34.2 million), further strengthening the company’s financial position. Outlook Phoenix Solar anticipates solid growth in consolidated revenues and earnings going forward. 2017 foresees a revenue projection in the range of EUR 160 to 190 million (2016: EUR 139.2 million). To achieve this, the company is planning projects with a total volume of between 180 MWp and 220 MWp (2016: 153,7 MWp).