World News: 13:30 GMT Thursday 30th May 2019. [Alternus Energy Inc. via Globe Newswire via SPi World News]
New York, NY, May 30, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- . (OTC: ) (the “Company” or “Alternus”), a global renewable energy company, today announced the issuance of the following shareholder letter from its Chairman and Chief Executive Officer, Vincent Browne:
Dear Alternus family, partners and shareholders,
I write to you today with a great sense of gratitude, pride and excitement. Gratitude and pride for the dedication and support of all of our stakeholders - team members, partners and shareholders alike - in making 2018 a breakthrough year for Alternus, and excitement for the value I see for us all in this ongoing journey.
Throughout 2018 Alternus Energy added a record amount of new solar parks and installed solar power, entered into a new and very attractive investment market, Germany, started the audit process and added key new exectives and management. We have laid the groundwork for what lies ahead and solidified our platform for future growth as we look to deliver on our mission statement. All areas of corporate, capital markets, personnel, financing and business operations were advanced whereby we expect 2019 to be a major inflection year for the Company.
Alternus Energy aims to become a leading global independent power producer in green energy by owning and operating a global network of distributed and connected green energy power plants in countries where the combination of economic, environmental and political policies are optimized and supportive for the long term, ever growing need for clean renewable energy. Alternus currently owns and operates a diverse portfolio of PV solar parks that connect directly to national power grids on long-term government supply contracts.
The Germany and Italy projects enjoy 20-year government counter-party ‘Feed-in-Tariff’ contracts at fixed sales prices that provide long-term predictable positive cash flows at average 85% gross margins. The Romanian parks operate under a ‘Green Certificate’ government incentive scheme over 15 years whereby the projects earn a certain amount of green certificates for the energy produced that are then subsequently sold to the Romanian energy market. As a result, there is a high degree of visibility of income and cashflows in our business model.
We use Annual Contracted Revenues as a key metric in our financial management of the business as we feel it better reflects the long-term stability of operations. It must be noted that the actual revenues recorded by Alternus in a particular year may be lower than the Annual Contracted Revenues because not all parks may be revenue generating for the full year in their first year of operation, and also to allow for timing of acquisitions that take place throughout the financial year.
This can be best illustrated by looking at our reported 2018 financial results where we reported revenues of $2.6 million revenue for the 12 months, but our contracted revenues at the end of 2018 were $4.8 million, and we have since added an additional $1.0 million of contracted revenues with the recent 4MW’s completed in Italy.
The certainty of cash flows and the fixed nature of the senior debt servicing provide quite healthy coverage ratios for debt and equity cushion. Added to this is the fact that our senior financing is project specific with no cross-collateralization and with no recourse to Alternus, the parent company. In this environment all free cash flows therefore are available to Alternus to cover corporate costs and for reinvestment in new projects.
In addition to the project specific senior debt, we use a small amount of mezzanine debt that reduces, and in some cases eliminates, the requirement for Alternus to provide equity. In this way, what appears to be very high debt levels are fully serviced by, and contained within, the individual projects. As at March 31, 2019, 91% of our total liabilities was project related debt as described above.
This dynamic, coupled with low cost debt, is what generates higher than normal returns to Alternus shareholders, that we feel is sustainable over the long-term based on current market and contract conditions.
Our acquisition pipeline remains strong across Europe, in Germany, Italy, The Netherlands and beyond. Based on current contracts, backlog and project pipeline, we have identified the following additional solar projects that are expected to be added during 2019:
In the event that all of the above transactions conclude by year end, then we would expect to exit 2019 with:
With access to growth capital in place and a robust pipeline of solar projects, we are at a very exciting inflection point to significantly scale our business in a profitable way over the next few years. As I have said in the past, we do not operate our business on a quarter by quarter basis, but with long term shareholder value creation as a priority. We aim to maximize return for our shareholders by acquiring positive cash flowing assets with long term income streams at the lowest possible risk, and we will continue to do that as we invest in additional infrastructure and income streams.
I invite the readers of this letter to also review our Corporate Profile, Financial Reports and Q1 financial results summary at .
We look forward to reporting our progress with shareholders and Wall Street as we look to create and build long-term sustainable shareholder value.
Sincerely,Vincent BrowneChairman and Chief Executive Officer
Alternus Energy, Inc. is a global renewable energy company that owns and operates Utility Scale Solar parks internationally. Each solar park generates clean energy every day that is sold to national power grids under long term, government counterparty, fixed price contracts. The Company currently has operational solar parks in Germany, Italy and Romania with contracts in place to add additional solar parks in the Netherlands. For further information please go to:
Globe Newswire: 13:30 GMT Thursday 30th May 2019
SPi News is published by Sector Publishing Intelligence Ltd.
© Sector Publishing Intelligence Ltd 2019. [Admin Only]
Sector Publishing Intelligence Ltd.
Agriculture House, Acland Road, DORCHESTER, Dorset DT1 1EF United Kingdom
Registered in England and Wales number 07519380.