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French renewable energy development company Theolia posted a loss of EUR 25.3 million for the first half of 2008, compared with a profit of EUR 6.2 million in the same period last year. The slide in Theolia's fortunes comes after a change in strategy, with the company now focused on being an owner operator of wind plant rather than developing them for sale.

Noting the favourable support systems for wind power in western Europe, in particular the improved prices on offer in Germany (“uåX˜äŠÊ˜·³Ç, July 2008), one of its core markets, Theolia aims to "generate a recurring and predictable stream of revenues...over a period of 15 to 20 years." In line with this strategy, it has not sold off any wind farms since January. In the same period a year ago, it earned EUR 16.1 million from wind farm sales.

The changed strategy has led the company to strongly reduce its 2008 earnings target from the previously announced EUR 55-65 million, assuming sales of 170 MW, to a minimum of EUR 20 million. Despite the reduction, consolidated profit before interest and depreciation grew in the first six months of 2008 by EUR 12 million to EUR 8.6 million, up from minus EUR 3.3 million a year ago, largely on the back of electricity sales.

Theolia's wholly owned installed capacity grew from 73 MW on June 30, 2007 to 350 MW a year later, while sales of electricity leapt by 409%, from EUR 5.9 million to EUR 30.2 million. Total installed capacity, including that under management, now stands at 661 MW, up from 250 MW a year ago.

The firm expects to bring a further 474 MW online in western Europe by the end of 2009, "not including future acquisitions and organic development through Theolia emerging markets." It reports a total pipeline of 2796 MW worldwide. Theolia expects to meet its target of 2000 MW installed capacity by 2011 and plans to become the world's tenth largest wind energy producer by 2009; it currently rates itself twelfth.