Dresser-Rand and MBB Clean Energy AG Sign Agreement for the Disposition of three Photovoltaic Power Plants 11 MW of renewable energy designed, constructed and commissioned by Dresser-Rand to be added to MBB Clean Energy AG's portfolio
MUNICH and HOUSTON, Oct. 10, 2013 /PRNewswire/ -- Dresser-Rand Group Inc. ("Dresser-Rand") (NYSE: DRC), a global supplier of rotating equipment solutions to the oil, gas, petrochemical, power, and process industries has reached agreement with MBB Clean Energy AG ("MBB Clean Energy") for the latter's acquisition of three power plants designed, built and commissioned by Dresser-Rand in Italy. Dresser-Rand will provide long term O&M services which should be beneficial to MBB Clean Energy and is consistent with Dresser-Rand's business model to stay integrally involved with its equipment throughout its total life cycle.
The power plants represent 11 MW of renewable energy to be added to MBB Clean Energy's renewable energy portfolio. The plants are in full operation with approved feed in tariffs. The plants, with a total collector area of 77,680 sqm, consist of 44,764 polycrystalline silicon solar modules with an output of 245 Wt that, in 2012, produced an energy yield of about 16 million kilowatt hours. This corresponds to an annual electricity consumption of approximately 4,000 households.
MBB Clean Energy aims to become one of the leading clean energy producers in Germany, with the acquisition and operation of European and International energy projects. Its intent is to set standards for sustainable, environmentally friendly and economically viable electricity production and, therefore, to significantly contribute to a responsible energy supply. In the following years, its goal is to build up a power plant portfolio with a nominal capacity of 1.500 Megawatt (MW). As part of the MBB Projects Group, MBB Clean Energy uses its technical know-how and experience for potential investment objects in the economic, fiscal, technical and legal due diligence. Criteria for a positive due diligence include a return-on-investment (ROI) from the income less operating expenses (EBITDA) of at least 10%. MBB Clean Energy has issued a bearer bond on the German stock market with a 6 year term paying a 6.25% yearly fixed interest rate, based on renewable energy projects.
As an international investor, MBB Clean Energy exclusively puts its trust in the acquisition and operation of existing power plants with a secured grid connection and predictable cash flows. It does not execute the project development and construction of such facilities. Only investment opportunities which meet the high quality requirements of the MBB Clean Energy and fulfill predefined fixed revenue and return on investment are included in the portfolio. Dresser-Rand, as a global leader in energy solutions, has provided hundreds of power generation and renewable energy solutions, including a substantial number of photovoltaic power plants all over the world, and is a leading supplier of equipment and solutions.
The Parties have agreed to finalize the closing and payment of the acquisition of the power plants by October 31, 2013, subject to customary closing provisions.
Eckhart Misera, MBB Clean Energy's CEO, stated: "On our way to one of the leading producers of clean energy in Germany we get the first top solar project in our portfolio with the plant located in the municipalities of Monreale and Piani degli Albanesi. The investment returns are about 40% higher than the minimum requests of the return on investment stated in the Prospectus, and that with a superb technical quality of the system."
Jesus Pacheco, Dresser-Rand's Executive Vice President New Equipment, said, "We are very proud that MBB Clean Energy AG has selected the Dresser-Rand plants to be the first solar project acquired for its interesting new bond portfolio, and to be part of MBB Clean Energy's exciting renewable energy business. This is a tribute to the high quality of the design, construction, operation and maintenance executed by Dresser-Rand in these PV plants.
Dresser-Rand is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. Dresser-Rand operates manufacturing facilities in the United States, France, United Kingdom, Spain, Germany, Norway, and India, and maintains a network of 49 service and support centers (including 6 engineering and R&D centers) covering more than 150 countries. Website: www.dresser-rand.com/
About MBB Clean Energy AG
The MBB Clean Energy aims to become one of the leading producers of "clean energy" in Germany, with the acquisition and operation of European and international energy projects. In the following years, the buildup of a power plant portfolio with a nominal capacity of 1.500 megawatt (MW) is planned. As part of the MBB Projects Group, MBB Clean Energy AG can utilize the specialized know how and experience of the Group to carry out economic, tax, technical and legal risk assessments of potential investment targets. Criteria for a positive due diligence is among others: a Return-On-Investment (ROI) from the revenues less operational costs (EBITDA) of a minimum of ten percent. Furthermore, MBB Clean Energy exclusively invests in parks, which have a secured grid connection and thus possess a secured cash flow. Website: www.mbb-cleanenergy.com.
This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, Dresser-Rand's plans, objectives, goals, strategies, future events, future bookings, revenues, or performance, capital expenditures, financing needs, plans, or intentions relating to acquisitions, business trends, executive compensation, and other information that is not historical information. The words "anticipates", "believes", "expects, "intends", "appears", "outlook," and similar expressions identify such forward-looking statements. Although Dresser-Rand believes that such statements are based on reasonable assumptions, these forward-looking statements are subject to numerous factors, risks, and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks, and uncertainties include, among others, the following: economic or industry downturns; the variability of bookings due to volatile market conditions, subjectivity clients exercise in placing orders, and timing of large orders; volatility and disruption of the credit markets; its inability to generate cash and access capital on reasonable terms and conditions; its inability to implement its business strategy to increase aftermarket parts and services revenue; its ability to comply with local content requirements; delivery delays by certain third party suppliers of large equipment; its ability to implement potential tax strategies; competition in its markets; failure to complete or achieve the expected benefits from any future acquisitions; economic, political, currency and other risks associated with international sales and operations; fluctuations in currencies and volatility in exchange rates; loss of senior management; environmental compliance costs and liabilities; failure to maintain safety performance acceptable to its clients; failure to negotiate new collective bargaining agreements; unexpected product claims and regulations; infringement on its intellectual property or infringement on others" intellectual property; its pension expenses and funding requirements; difficulty in implementing an information management system; and Dresser-Rand's brand name may be confused with others. These and other risks are discussed in detail in Dresser-Rand's filings with the Securities and Exchange Commission at www.sec.gov. Actual results, performance, or achievements could differ materially from those expressed in, or implied by, the forward-looking statements. Dresser-Rand can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them does, what impact they will have on results of operations and financial condition. Dresser-Rand undertakes no obligation to update or revise forward-looking statements, which may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, except as required by applicable law. For information about Dresser-Rand, go to its website referenced above.
SOURCE Dresser-Rand Group Inc.