Etrion Corporation
TSX : ETX

Etrion Corporation

November 11, 2009 07:00 ET

Etrion Releases Third Quarter 2009 Interim Financial Statements

TORONTO, ONTARIO--(Marketwire - Nov. 11, 2009) - Etrion Corporation ("Etrion" or the "Company") (TSX:ETX), a Canadian energy company, today released its interim consolidated financial statements and related management discussion and analysis ("MD&A") for the three and nine months ended September 30, 2009 and 2008.

For the three months ended September 30, 2009, the Company reported a net loss of US$50.9 million (loss per share of US$0.32) compared to a net loss of US$7.1 million (loss per share of US$0.04) for the three months ended September 30, 2008. For the nine months ended September 30, 2009, the Company reported a net loss of US$53.9 million (loss per share of US$0.34) compared to a net loss of US$13.2 million (loss per share of US$0.09) for the nine months ended September 30, 2008.

The net results for the three and nine months ended September 30, 2009, were adversely affected by the following non-cash items that had no impact on cash flow: (a) the recognition of a US$44.0 million impairment loss in the carrying value of the oil and gas investments in Venezuela due to the uncertainty of collecting future dividends; and (b) the recognition of US$5.4 million in compensation expense related to the CEO's right to exchange his 10% equity interest in the Company's European subsidiary, Solar Resources Holding, Sarl, for an equivalent fair value of shares in Etrion.

Before the extraordinary non-cash compensation expense and the oil and gas impairment, the Company's loss for the three and nine months ended September 30, 2009, would have been US$1.4 million (loss per share of US$0.01) and US$4.4 million (loss per share of US$0.03), respectively.

Marco Northland, the Company's CEO, commented, "Etrion made significant progress in the third quarter with the appointment of a new Board and the acquisition of the renewable energy business and its management team. We have since closed the acquisition and bank financing for our first solar power project in southern Italy, and we look forward to building critical mass quickly in the renewable sector. We have significant cash to support our growth and strong shareholders to assist us in raising the required capital."

About the Company

Etrion Corporation is a Canadian energy company based in Geneva, Switzerland and listed on the Toronto Stock Exchange (ticker symbol "ETX"). The Company is focused on developing, financing, building, owning and operating global electrical power plants based on renewable sources of energy, including solar photovoltaic, solar thermal and wind. Etrion continues to own oil and gas investments in Venezuela acquired by its predecessor, PetroFalcon Corporation.

For additional information, please visit the Company's website at www.etrion.ch.

Forward-Looking Information:

This press release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the growth of the Company's renewable energy business) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the failure to begin construction on the Italian projects in a timely manner and the failure to begin selling electricity in a timely manner.

Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not a guarantee of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

Contact Information

  • Etrion Corporation
    Garrett Soden
    Chief Financial Officer
    +41 (22) 715 20 90
    +41 (22) 715 20 99 (FAX)
    Website: www.etrion.ch