ENCAVIS continues to grow and is still fully on target for the 2021 financial year

Wind and solar park operator Encavis AG (ECV) continues to grow and is still fully on target for the 2021 financial year due to the revenue and results achieved in the first nine months. All told, the weather conditions were weaker than in the meteorologically far more favorable period in the previous year (-11 % in electricity production compared with the corresponding 2020 figure), but revenue remains in line with the forecast levels. As a result, the Management Board is again confirming both the forecast for the 2021 financial year published in March 2021 and the “Fast Forward 2025 growth strategy”. Twelve strategic development partnerships with a project pipeline of more than 3.5 gigawatts (GW) will allow Encavis to secure the capacity expansion of its solar park portfolio. Some 60 % of the development projects are focused on Germany, Denmark, and Italy’s three outstanding development regions. In the current financial year, Encavis has already been able to acquire parks with a capacity of more than 130 MW for its portfolio.

During the first nine months of the 2021 financial year, the Group generated revenue of EUR 259.1 million (previous year: EUR 234.3 million), up to EUR 24.8 million or approximately 11 %. This is largely attributable to the revenue contribution of approximately EUR 31.7 million from the two large-scale Spanish solar parks La Cabrera (200 MWp) and Talayuela (300 MWp). In this way, the Spanish parks alone were able to more than compensate for the weather-related EUR 12.2 million decline in revenue from the existing parks.

The revenue from the solar parks amounted to EUR 198.4 million after the first nine months of 2021, exceeding the previous year’s figure by a total of around EUR 26.3 million. By contrast, the revenue of the wind park portfolio came to EUR 48.4 million, roughly EUR 7.2 million lower year-on-year. In the Asset Management segment, revenue significantly exceeded the previous-year period at around EUR 11.3 million (previous year: EUR 6.3 million). The Technical Services segment generated revenue of EUR 3.3 million (previous year: EUR 3.5 million).

At EUR 195.4 million, operating earnings before interest, taxes, depreciation and amortisation (operating EBITDA) were up by roughly 8 % year-on-year and correspond to the medium-term target of an EBITDA margin of just over 75 %. After the first nine months, operating earnings before interest and taxes (operating EBIT) now also exceed the level seen in the meteorologically very favourable period in the previous year. EBIT in the reporting period of EUR 115.1 million (9M/2020: EUR 113.2 million) corresponds to an EBIT margin of just over 44 %. Revenue and earnings figures in Q3, after nine months as well as full-year guidance 2021 of Encavis are in line with analysts’ consensus. Operating earnings per share (EPS) are slightly and operating cash flow of Encavis are significantly above analysts’ expectations.

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“Revenue and operating earnings benefited in particular from the two Spanish solar parks as well as the wind parks we acquired, and were even able to exceed the figures from the exceptional year 2020, which was marked by unusually positive weather effects. Adjusted for these positive weather effects in the previous year and the unfavourable weather in 2021 (difference amounting to EUR 12.2 million), we achieved revenue growth of just under 17 %, operating EBITDA of roughly 16 % and EBIT of around 14 %,” says Dr Christoph Husmann, CFO of Encavis AG, commenting on the Encavis Group’s positive performance in the first nine months of 2021.

Operating cash flow is up by EUR 20.5 million or 12 % year-on-year to EUR 187.1 million. The large-scale Spanish solar parks (EUR +37.6 million) were once again the main drivers of this development.

The current 2021 financial year is profiting from the continuing portfolio expansion, specifically the acquisition of the two large-scale Spanish projects as well as two wind projects in Denmark and Germany. The Management Board is again confirming stronger revenue growth to more than EUR 320 million (+9 %) for the 2021 financial year. Operating earnings (EBITDA) of more than EUR 240 million (+7 %) as well as operating EBIT of more than EUR 138 million (+4 %) are forecast, which would then result in operating earnings per share (EPS) of EUR 0.46 (+7 %). Operating cash flow is expected to reach more than EUR 210 million, thereby achieving the same levels seen in the previous year, which were significantly above the forecast.


Author: KS

Source: Encavis AG

Topic: Finance News | Wind Energy News

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