Bloomberg News

Spain’s Fersa May Miss Capacity, Sales Goals on European Crisis

November 29, 2011

Nov. 28 (Bloomberg) -- Fersa Energias Renovables SA, the Spanish wind-energy developer whose stock has lost 46 percent since April, may miss its capacity and sales targets as Europe’s debt crisis dries up financing for projects.

Fersa Energias, which has 153 megawatts, or 59 percent, of its total capacity in Western European markets including Spain and Italy, said the debt crisis will make it difficult to meet its 2014 targets of 561 megawatts of installed capacity and more than 110 million euros ($146 million) of revenue, Chairman and co-Chief Executive Officer Jose Maria Roger said.

“It’s clear that what we were thinking in 2010 might happen is very different from what we’re thinking will happen now,” Roger said in a Nov. 25 telephone interview from the company’s Barcelona headquarters. “The problem is that the sovereign debt crisis affects the financial market and in a business in which 70 or 80 percent is project finance there is a direct impact.”

European economies including Spain and Italy have been battered by the debt crisis as borrowing costs climbed, forcing banks to squeeze lending to finance alternative energy projects. Fersa has underperformed the biggest wind park developers as it lost 47.9 million euros last year after writing down assets.

Enel Green Power SpA, Italy’s biggest developer, was unchanged this year while EDP Renovaveis SA lost 6.3 percent compared with a 41 percent decline for Fersa. Vestas Wind Systems A/S, the biggest wind-turbine maker, said Nov. 9 it abandoned its profit margin and sales targets for 2015 on weakness in developed markets.

‘More Difficult’

Fersa added no new generating capacity between March and September, regulatory filings show.

“The objective is still there -- whether we’ll be able to reach it or not is another issue,” said Roger, 50, who founded the company in 2000. “As we get closer to the date, it will get more difficult.”

Fersa Energias posted nine-month net income of 1.97 million euros compared with a net loss of 1.16 million euros a year earlier, it said Nov. 15. Sales for the period climbed 60 percent to 32.5 million euros.

As a way to raise capital and invest in new projects, Fersa last week sold Empordavent SL, owner of a 48-megawatt wind park in Spain, for 10.7 million euros in cash with a capital gain of 7 million euros.

The wind-park developer, which had 259 megawatts of installed capacity in Europe and Asia as of Sept. 2011, will aim to carry out new asset disposals next year, Roger said.

--Editors: Alex Devine, Todd White

To contact the reporters on this story: Manuel Baigorri in Madrid at Ben Sills in Madrid at;

To contact the editors responsible for this story: Angela Cullen at Reed Landberg at

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