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4-Traders Homepage  >  Equities  >  Euronext Paris  >  Direct Energie    DIREN   FR0004191674

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09/27 DIRECT ENERGIE : 2017 half year results
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Direct Energie : 2017 half year results

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09/27/2017 | 05:46pm CEST

Press release

 

 

Paris, 27 September 2017

  

Half-year 2017 RESULTS

 

Solid performance once again

Acceleration of the commercial momentum

437,000 customer sites acquired

Revenue: €1,006.1 million (+16.5%)

Current operating income: €52.6 million (+20.1%) 

Acquisition of Quadran in progress and on schedule

Today Direct Energie's Board of Directors approved the Group's consolidated financial statements for the first half of 2017. They were subject to a limited review by the auditors.

The first half of financial year 2017 sees a double-digit increase in revenue and current operating income supported by a strong commercial momentum and a solid performance of the production assets which validates the effectiveness of the vertical integration strategy. These elements enable to confirm the targets stated in the annual results.

Furthermore, in June, the Group announced a structuring acquisition project, Quadran, whose completion is progressing according to schedule.

Continued sales dynamic

€ m H1 2017 H1 2016 Chg.
Revenue 1,006.1 863.6 +16.5%
Gross margin 148.4 107.1 +38.6%
EBITDA* 69.7 59.3 +17.5%
Current operating income 52.6 43.8 +20.1%

* EBITDA = Current operating income restated for depreciation and amortisation and share-based payments (see Note 25.3 to the half-yearly consolidated financial statements).
The contribution by operating segments is detailed in Section 3 of the Interim Financial Report

In the first half of 2017, the Direct Energie Group reported revenue of €1,006.1 million, up by 16.5% compared to the first half of 2016. This increase is the result of a continuous commercial growth across all segments with a gross acquisition of 437,000 customer sites in France over the period compared to 376,000 in the first half of 2016.

At end-June 2017, the Group's customer portfolio in France reached 2.3 million sites, up 27% compared to the first half of 2016, and breaks down as follows:

in thousands 30 June 2017 30 June 2016 Change
Residential 1,926 1,481 30.0%
Non-residential 385 344 11.9%
Total 2,311 1,825 26.6%

 

in thousands 30 June 2017 30 June 2016 Change
Electricity 1,789 1,433 24.8%
Gas 522 392 33.2%
Total 2,311 1,825 26.6%

The ruling of the French State Council, considering illegal the regulated gas tariffs, brings closer the prospects of their termination which could also apply to those in electricity. The Group is in a position to take advantage of this decision and create a major growth driver.

Customer acquisitions in the first half of the year generated an increase in volumes delivered in France, both for electricity (8.1 TWh, or +14%) and for gas (3.8 TWh, or +30%).

The gross margin came to €148.4 million, up by 38.6% compared to the first half of 2016 benefiting from the increased energy volumes sold and the ramp-up in power generation. This includes the first time contribution of Marcinelle plant for €8.1 million.

Thanks to controlled personnel expenses, EBITDA amounts to €69.7 million (+17.5%) and current operating income to €52.6 million (+20.1%).

After taking into account the changes in fair value of the derivative financial instruments, mainly due to the physical delivery of underlying energy volumes, operating income came to €31.8 million, up 18%.

While the Group had a recognized a deferred tax income of €34.5 million over the first half 2016, a €(5.5) million deferred tax charge was booked over the period. This charge is mainly due to the utilization of tax losses carried forward recognized in previous periods.  This change between the first half 2016 and the first half 2017, with no cash impact, alone explains the decrease in the net result to €17.0 million (52.4 M€ over the first half 2016).


A solid balance sheet

Shareholders' equity came to €203.1 million, compared to €217.5 million at 31 December 2016, mainly due to the change in fair value of the derivative hedging instruments (-€17.8 million), the annual dividend payment, and the implementation of the share buyback program.

€ m   30/06/2017   31/12/2016
      
Gross financial debt   193.3   196.2
Margin calls received in cash   64.2   132.4
Margin calls paid in cash   (5.5)   (3.2)
Gross cash and cash equivalents   (194.9)   (368.9)
        
Net financial debt   57.1   (43.6)

The net financial debt stood at €57.2 million, compared to €(43.6) million at end-December 2016, mainly impacted by the seasonal and usual changes in WCR.

At end-June 2017 the available cash amounted to €192.3 million, and the Group had €245 million in undrawn financing lines.

 

Quadran, a structural acquisition that is being finalised

In June 2017, Direct Energie announced that it entered in exclusive negotiations with the intent to acquire the French and French overseas activities of Quadran, one of France's main renewable energy producers. This acquisition is part of Direct Energie's vertical integration strategy, which aims at confirming its position as a global integrated energy player with a diversified generation mix and a strategic position in energy supply.

The acquisition process is progressing as planned. The SPA, signed at the end of July, sets an acquisition price of €303 million, with an earn out of €113 million, which will be partly recognised at closing given the commissioning pace of new projects. The closing is scheduled during the fourth quarter of 2017. Thus, the contribution of Quadran to Direct Energie's 2017 results will be minor, and should generate an EBITDA of more than €60 million in 2018 (*).

(*) The estimated figures and targets regarding the Quadran Group are based on the information provided to Direct Energie by the Quadran Group, as adjusted on the basis of certain assumptions and estimates considered reliable by Direct Energie.

Financing for this acquisition is entirely finalised. In addition to a capital increase of €130 million that was carried out in July through a private placement, the Group secured a 5-year loan of €230 million in August. As part of this transaction, the Group also extended the maturity of a credit line and renewed other existing financing facilities. With contained indebtedness and appropriate financial flexibility, Direct Energie has the necessary resources to finance its growth and development.

 

2017 objectives confirmed 

Based on the 2017 first half performance, and despite recent changes in tariffs that were lower than expected, Direct Energie confirms its annual targets for financial year 2017, namely:

- A customer base of 2.5 million sites;

- Revenue of €2,000 million based on average seasonal temperatures;

- Current operating income of €100 million based on average seasonal temperatures.

"The 2017 first half results allow us to confirm our annual targets. We will continue to build the energy operator of the 21st Century, customer orientated, and relying on a balanced presence both upstream and downstream. The acquisition (in progress) of Quadran, a major player in renewable energy, will fully contribute to this objective. All of Direct Energie's employees are working to meet the new challenges for growth, including the announced termination of the regulated tariffs for gas and electricity", explained Xavier Caitucoli, CEO of Direct Energie.

  

Next publication:

Revenue for 2017 third quarter on 7 November 2017 after the market close

ISIN code: FR0004191674 / Ticker symbol: DIREN / Euronext Paris, Compartment A

Publications: The Interim Financial Report, the half-year consolidated financial statements, along with the analyst meeting presentation, are available on the Group's website (www.direct-energie.com).

 

About Direct Energie

Third-largest French electricity and gas provider, the Direct Energie Group supplies, in France and Belgium (under the Poweo brand) more than 2.3 million residential and non-residential customer sites. As an integrated energy actor, Direct Energie produces power, supplies gas and electricity, and sells energy services to its customers. Direct Energie's success has been underpinned for more than 14 years by its technical expertise, excellent customer relationships and innovation capacity. In 2016, the Group generated consolidated revenues of €1,692.4 million and delivered 19.8 TWh of energy.

For more information, visit our website www.direct-energie.com

Press contact:          

Image Sept                                                                                                                                

Grégoire Lucas - [email protected]  - Tel + 33 (0)1 53 70 74 94                                     

Marie Artzner - [email protected] - Tel + 33 (0)1 53 70 74 31 or + 33 (0)6 75 74 31 73

 

CM CIC Market Solutions

Stéphanie Stahr - [email protected] - Tel + 33 (0)1 53 48 80 57

Direct Energie

Mathieu Behar - [email protected] - Tel +33 (0)6 12 48 85 85

INCOME STATEMENT

In thousands of euros   30/06/2017   30/06/2016
     
Revenue excluding Energy Management   970,174   859,008
Energy Management margin   35,885   4,557
     
Revenue from ordinary activities   1,006,059   863,565
     
Cost of sales   (857,648)   (756,490)
     
Gross margin   148,412   107,075
     
Personnel expenses   (19,251)   (17,167)
Other operational income and expenses   (60,861)   (31,506)
Depreciation and amortisation   (15,681)   (14,575)
     
Current operating income   52,619   43,826
     
Changes in fair value of Energy financial derivative instruments operational in nature   (20,800)   (16,781)
Disposals of non-current assets   2   (11)
Impairment of non-current assets   0   (112)
Income and expenses related to changes in scope of consolidation   -   -
     
Operating income   31,820   26,923
     
Cost of net debt   (6,207)   (5,237)
Other financial income and expenses   (293)   (138)
     
Financial income/(loss)   (6,500)   (5,375)
     
Corporate income tax   (8,503)   30,533
Share of net income from companies accounted for by the equity method   135   332
     
Net income from continuing operations   16,953   52,414
     
Net income from discontinued operations   -   -
     
Net income   16,953   52,414
     
of which Net income, Group share   16,953   52,414
     
Earnings per share (in euros)   0.41   1.28
Diluted earnings per share (in euros)   0.39   1.21

Financial statements having undergone a limited review by the Statutory Auditors

BALANCE SHEET

In thousands of euros   30/06/2017   31/12/2016
Intangible assets   59,241   50,170
Property, plant and equipment   82,363   76,217
Investments in associates   1,648   1,434
Non-current derivative financial instruments   11,769   19,334
Other non-current financial assets   2,221   1,342
Other non-current assets   5,924   8,210
Deferred tax assets   57,554   66,467
Non-current assets   220,720   223,173
     
Inventory   42,696   38,458
Trade receivables   406,956   413,279
Current derivative financial instruments   53,972   137,084
Other current financial assets   21,390   18,364
Other current assets   37,492   30,263
Cash and cash equivalents   194,884   368,867
Current assets   757,389   1,006,314
     
TOTAL ASSETS   978,109   1,229,487
     
     
Share capital and share premiums   19,538   15,307
Retained earnings and profit or loss   196,706   188,769
Treasury shares   (9,044)   (207)
Other comprehensive income   (4,134)   13,630
Shareholders' equity - Group share   203,066   217,499
     
TOTAL SHAREHOLDERS' EQUITY   203,066   217,499
     
Non-current provisions   34,014   37,658
Non-current derivative financial instruments   20,568   17,311
Other non-current financial liabilities   183,736   182,843
Other non-current liabilities   5,349   4,759
Deferred tax liabilities   367   13,065
Non-current liabilities   244,033   255,637
     
Current provisions   14,944   14,169
Trade payables   158,751   242,602
Current derivative financial instruments   63,564   103,925
Other current financial liabilities   73,746   145,689
Other current liabilities   220,004   249,966
Current liabilities   531,010   756,351
     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   978,109   1,229,487

Financial statements having undergone a limited review by the Statutory Auditors

STATEMENT OF CHANGES IN EQUITY

    Share capital Share premiums Retained earnings
 and net income/(loss)
Treasury
shares
Other comprehensive income   Shareholders' equity
- Group share
In thousands of euros    Changes in fair value Other  
Shareholders' equity
at 30/06/2016
   4,122 8,071 116,751 (52) (87,512) 0   41,380
           
Shareholders' equity
at 31/12/2016
   4,150 11,157 188,769 (207) 13,630 0   217,499
           
Net income    - - 16,953 - - -   16,953
Other comprehensive income    - - - - (17,764) -   (17,764)
           
Comprehensive income    - - 16,953 - (17,764) -   (811)
           
Capital increase    - - - - - -   -
Options exercised    42 4,189 - - - -   4,232
Options    - - 1,359 - - -   1,359
Treasury share purchases/sales    - - 33 (8,837) - -   (8,805)
Dividends paid    - - (10,407) - - -   (10,407)
           
Shareholders' equity
at 30/06/2017
   4,192 15,346 196,706 (9,044) (4,134) 0   203,066

 

Financial statements having undergone a limited review by the Statutory Auditors

STATEMENT OF CASH FLOWS

In thousands of euros   30/06/2017   30/06/2016
     
Consolidated net income   16,953   52,414
Tax expenses/income   8,503   (30,533)
Financial income/(loss)   6,500   5,375
Income before taxes and financial expenses   31,955   27,255
     
Depreciation and amortisation   15,681   14,575
Impairment   -   112
Provisions and depreciations   4,731   31,446
Effect of changes in consolidation scope and other gains and losses on disposals   (0)   0
Expenses related to share-based payments   1,359   862
Change in fair value of financial instruments   26,482   16,781
Other financial items with no cash impact   (294)   11
Share of income from affiliates   (135)   (332)
Items with no cash impact   47,823   63,456
     
Income tax paid   (4,213)   -
Change in working capital requirement   (122,509)   (4,248)
     
Net cash flow from operating activities   (46,944)   86,463
     
Acquisition of fixed assets   (30,519)   (16,502)
Disposals of fixed assets   2   -
Change in deposits and guarantees   (68,734)   35,644
Net change in loans granted by the company   (10,177)   3,356
     
Net cash flows from investing activities   (109,430)   22,497
     
Sums received from shareholders during capital increases   4,232   3,190
Treasury shares   (8,805)   36
Proceeds from borrowings   2,159   117,494
Repayment of borrowings   (1,104)   (60,870)
Interest paid   (2,391)   (2,975)
Interest received   150   657
Dividends paid   (10,407)   (8,242)
     
Net cash flows used in financing activities   (16,166)   49,291
     
Net change in cash and cash equivalents   (172,540)   158,250
     
Cash and cash equivalents at beginning of year   364,837   31,993
Cash and cash equivalents at end of year   192,298   190,243

Financial statements having undergone a limited review by the Statutory Auditors





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Direct Energie via Globenewswire

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Financials (€)
Sales 2017 2 068 M
EBIT 2017 104 M
Net income 2017 77,3 M
Debt 2017 280 M
Yield 2017 0,72%
P/E ratio 2017 22,24
P/E ratio 2018 17,24
EV / Sales 2017 1,01x
EV / Sales 2018 0,85x
Capitalization 1 818 M
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Mean consensus OUTPERFORM
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Average target price 56,5 €
Spread / Average Target 38%
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NameTitle
Xavier Caïtucoli Chairman & Chief Executive Officer
Sébastien Loux Deputy Chief Executive Officer-Operations
Louis-Mathieu Perrin Director-Administration & Finance
Laurent Deletain Director-Information Systems
Jacques Veyrat Director
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