French alternative energy company Theolia (TEO.PA), announced Monday that it is scaling down its growth strategies to match financial capabilities and is selling a large German wind farm.
The company reported very little sales growth for the first nine months of the year–85.1 million euros, up from 83.48 million euros a year ago.
Following a strategy review the company said it will continue to sell off its non-wind assets and narrow its geographic area of operations. In addition the planned listing of Theolia Emerging Markets as a separate entity has been cancelled.
"In recognition of the current challenging financial environment, Theolia will align future growth with its financial capacity," the company said in a statement issued by CEO Marc van’t Noordende.
"In order to increase internal cash generation to finance future growth, Theolia has resumed efforts to sell wind farms in Germany and is evaluating the possibility of selling wind farms in other countries as well. This represents a reversal of the build and hold strategy announced on September 3, 2008," the statement said.
Wind Farm Sale
Via its German subsidiary Natenco, Theolia has signed a contract to sell a 55.5-megawatts (MW) wind farm in Germany to Meinl International Power Ltd. for 81 million euros.
The wind farm, in operation since the beginning of 2006, includes 37 1.5-MW wind turbines and is located in the federal state of Saxony-Anhalt.
The closing is expected in the coming weeks.
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