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Leclanché says improved 2016 is ‘first stage’ of journey towards EBITDA breakeven

Leclanché batteries in use on the Spanish island territory of Graciosa. Image: Leclanché

Leclanché has hailed recent project wins and a potential 450MW pipeline in reporting an improvement on its finances, which the company’s CFO has called “the first stage of our journey towards EBITDA breakeven”.  

The vertically integrated energy storage solution provider, listed on the Swiss Stock Exchange, has reported in its full 2016 results that its revenue increased 56% compared to 2015. Revenues in 2016 reached CHF28.5 million (US$28.3 million), with the company meeting its yearly guidance figures. Meanwhile EBITDA (earnings before interest, tax, depreciation and amortisation) losses added up to CHF27.5 million, slightly greater than the CHF26 million EBITDA losses in 2015. Once one-off, exceptional and non-recurring items are excluded, the loss was CHF18.6 million, which Leclanché said was a 54% net sales improvement on 2015.

“While the company has delivered a revenue growth in line with the market, I am confident that this positive achievement is the first stage of our journey towards EBITDA breakeven, which we still expect to reach above 100MWh of revenue in 2018,” Leclanché chief financial officer Hubert Angleys said.

Angleys added that the company is continuing to pursue partnerships in China, to access that country’s domestic market, including the booming e-mobility space. In March, the company received certifications of compliance with Chinese standards for batteries. However, in previously reporting its calendar year results, Leclanché said a partnership with Narada Power, which could include the establishment of a 2.5GW storage battery factory in China, is on hold.

The company also talked up recent project milestones, including a 13MW / 53MWh system in Ontario, Canada, the first of two parts of which is expected to be online this summer. Leclanché also mentioned its recent partnership with Swiss Green Electricity Management Group (SGEM) to build the Marengo Energy Storage Plant in Chicago, a 23MW / 10MWh project which will play into the PJM frequency regulation market. Other notable projects included a 20MW / 33MWh project for a German utility and an all-electric ferry in Denmark.

“We are delighted to report that the Company met its financial guidance for the financial year 2016,” CEO Anil Srivastava said.

“We continued to substantially increase our revenues and decrease our EBITDA loss, 40% of which was accounted for by growth investment of CHF10 million… 2016 was another strong year for Leclanché. We continued to break new ground with our innovative and sustainable solutions across all three of our key markets: utility-scale generation and microgrids; eTransport; and commercial and industrial battery systems.”