France

France

Theolia deficit bigger than forecast

Troubled French renewable energy producer Theolia expects to report a net loss of over EUR 240 million for 2008, an advance on its 2007 deficit of EUR 49 million. The cash-strapped company blames the global financial crisis as well as the "aggressive growth ambitions that led to numerous acquisitions and multiplication of subsidiaries" by the former management, which relinquished control in September. In particular, the company says its losses stem from "substantial depreciations on prior acquisitions resulting from fair value impairments," and "significant one-off charges and provisions related to discontinued contracts and activities," plus the decision to stop selling its operational wind assets (Windpower Monthly, October 2008). This decision has since been overturned, with Theolia selling plant to raise cash. It says it is making good progress on restructuring the company by focusing on key markets, reducing costs and improving its cash management. It describes its 2009 budget as a "self-financing scenario," driven by sales of non-core businesses and wind power projects as well as operating plant. Theolia's full financial results were to be published on April 28.

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