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2019/2020 Q3 Revenue

22 April 2020

8% increase in 9-month turnover to € 6.2 million

Production volumes at the best levels

Lower gas prices in the context of the economic crisis

In €K 2019/2020* 2018/2019 Variation

%
H1 sales (Jul-Dec) 4 180 3 283 + 27%
Q3 sales (Jan-Mar) 2 043 2 481 – 18%
Sales year to date

(9 months)

 6 223 5 764 + 8%

* unaudited numbers

Forbach, France, March 9, 2020 –La Française de l’Énergie (Euronext: LFDE – ISIN: FR0013030152) leader in industrial ecology, reports sales of € 6.2M for the first nine months of 2019/2020. During the period, the Group increased its volumes of gas production by + 35% and electricity production by + 51% (France and Belgium). Despite a drop in gas prices that accelerated sharply in the 3rd quarter, the Group improved its sales by + 8% over the first 9 months of the financial year, confirming the resilience of its economic model.

32% increase in revenues from green electricity production in the first 9 months of the 2019/2020 financial year

Revenues from the production of green electricity from abandoned mine gas amounted to €4.6 million at the end of March 2020, an 32% year-on-year increase. This performance is explained by an optimal production at the Avion site (more than 94.5% average availability rate) and the additional contribution from the Anderlues site (€ 626k) commissioned at the end of April 2019. The economic crisis is weighing on electricity prices in Belgium but has had no impact on its power production activity in France, where the Group benefits from a guaranteed rate with feed-in-tariff which represent 86% of its revenues.

Strong increase in gas production limiting the negative price effect

Over the first 9 months of the financial year, the turnover of the gas activity reached €1.7 M, down 28% mainly due to the ongoing fall in gas prices. Indeed, the shutdown of industrial activity in Asia at the beginning of January resulted in a reallocation of gas volumes to Europe, leading to a mechanical drop in sales prices which accelerated with the drastic reduction in demand following the lockdown measures implemented in Europe. The average selling price thus fell from €22.16 per MWh in 2019 to €12.67 per MWh in 2020 and reached €11.66 per MWh in the third quarter of 2019/2020. This downward trend continued in April until the gradual recovery of economic activity in Europe kicks in later on this year.

However, the Group still recorded an increase of + 35% in its gas production volumes over the first 9 months of its financial year, and at the same time reached its highest historic levels. This good performance thus allows LFDE to maintain a solid revenue base.

Outlook for the 2019/2020 and 2020/2021 fiscal years

The Group’s production is not affected by the lockdown measures and continues to function optimally. Actually, production volumes of gas and electricity continue to grow and reached this quarter the highest recorded number. However, the ongoing effects of the crisis risks keeping the selling prices of gas and electricity in Belgium at low levels during the 4th quarter of the financial year.

In accordance with its development plan, LFDE confirms the installation of at least 5 new 1.5 MW cogeneration plants by the end of 2020, including 2 cogenerations on the new Bethune site, which will be in production on January 1, 2021.

LFDE also notes that the lockdown measures imposed on the administrative authorities lead to a delay in the processing and delivery of the authorizations necessary for the establishment of new production sites. The Group will provide a full update on the deployment schedule for its new facilities when there is more visibility on the crisis recovery process.

Solid financial structure and strengthening of investment capacities

The cash and balance sheet situation of LFDE remain very solid and should be further strengthened with the expected completion of a bank loan for a total amount of over €40 million dedicated to the installation of 25 cogenerations in Hauts-de-France and in Belgium. Even if the Group is still awaiting certain administrative authorizations for certain new sites, its nimbleness and execution capacity will enable it to rapidly deploy these new installations as soon as this financing and the necessary administrative authorizations are obtained.

In an uncertain economic environment, La Française de l’Energie continues to progress on its profitable growth plan highlighting the resilience of its business model.

 

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Promises won't impact
climate change.
Your local resources, will.

Climate change is an undeniable reality. We can already see its serious consequences for our planet. It is now urgent to act.

At FDE, we refuse to participate in initiatives that generate pollution beyond our borders, even if they reduce the carbon footprint of our local territories. Whether it is a question of carbon footprint or pollution, there are no limits.

It is our duty to build sustainable energy solutions that move towards global carbon neutrality. Today, the most resilient and sustainable energy solution is even more self-evident: it is imperative that energy remains local, within short supply chains, as close as possible to the needs of local communities and consumers.

Considering these, at FDE, we are taking actions and offering tailor-made, local multi-energy solutions.

By making the most of local resources, our offer enables us to provide territories with energies with a triple benefit: reduced carbon footprint, economically competitive and contributing to the socio-economic development of the area. We choose abandoned sites, make the most of the potential of local suppliers and service providers, and participate in a local center of expertise that involves universities, local authorities and associations in the local energy project.

FDE lacks neither the resources nor the know-how to deploy tailor-made energy solutions for everyone and for the planet.

Our engineers embrace the energy transition with a pragmatic view.

Recovering abandoned mine gas avoids fatal gas emissions into the atmosphere, while local coal gas reduces the need to import much more carbon-intensive gases. Abundant solar energy is both local and renewable.

To support the energy transition, at FDE, we are constantly innovating, looking for new solutions for the future, such as hydrogen, a decarbonized energy, or CO2 sequestration in coal.

In addition, all energy produced by our Group is designed to be more virtuous. All these processes therefore make FDE the only French energy producer with a negative carbon footprint.

HSE POLICY

In accordance with its values and code of ethics, and with the aim of pursuing the objective of:

  • Guarantee the integrity of our assets,
  • Ensure a safe and healthy working environment for its employees and subcontractors,
  • Guarantee the health and safety of all personnel working on and off-site,
  • Limit environmental impact.

 

FDE wishes to promote the following HSE principles:

Identify, prevent and control impacts and risks to health, safety, security and the environment,

Develop the company's activities in a sustainable and eco-responsible manner,

Improve the working environment for its employees and subcontractors.

Consequently, FDE undertakes to:

Ensure the rigorous application of regulatory procedures in force with respect to safety, health, environment and the preservation of public security,

Impose operational management with advanced criteria for environmental protection, pollution prevention and energy optimization, as part of the ecological transition,

Systematically verify compliance with HSE principles through audits and practical exercises, with the aim of continuously improving the system and its performance,

Define indices and performance indicators for monitoring HSE activities and promote benchmarking to identify areas for improvement,

Encourage employee participation and involvement in health, safety and environmental protection processes through training and creation of tools for sharing experience and knowledge.

This culture of risk prevention and control applies to all employees, partners and suppliers. It involves setting concrete objectives and deploying action plans as part of a continuous improvement process to better anticipate tomorrow's challenges. This policy is reviewed annually, as are the associated indicators and targets.

Antoine FORCINAL
Directeur Général,