Corporate News
ENCAVIS achieves results in the first three quarters of 2024 below the figures for the same period of the previous year due to unforeseeable events and adjusts its guidance for the current financial year
Hamburg 8 November2024 – The SDAX-listed wind and solar park operator Encavis AG (Prime Standard, ISIN: DE0006095003, ticker symbol: ECV) is significantly below the figures for the same period of the previous year (excluding the costs of the voluntary public takeover bid by Elbe BidCo AG) in terms of revenue and earnings after nine months of the 2024 financial year due to unforeseeable events, despite a slight increase in electricity production and strong growth in the Service segment.
Electricity production, which amounted to 2,673 gigawatt hours (GWh) in the same period of the previous year, rose to around 2,677 GWh after three quarters in the 2024 financial year.
The net operating revenue*) of around EUR 321.6 million achieved after nine months of the 2024 financial year was around EUR 34.5 million (-10%) below the previous year's figure of EUR 356.1 million (after deducting the electricity price brakes). Adjusted operating earnings before interest, taxes, depreciation and amortization (operating EBITDA*)) in the first nine months of the 2024 financial year amounted to EUR 201.3 million1), a significant decrease of around EUR 44.8 million1) (-18%1)) compared to the previous year's figure of EUR 246.1 million. This results in adjusted operating earnings before interest and taxes (operating EBIT*)) for the first three quarters of 2024 of EUR 109.3 million1), a significant decrease of around EUR 49.5 million1) (-31%1)) compared to the previous year's figure of EUR 158.9 million.
This result is influenced by the following developments, most of which were not foreseeable: The decline in revenue is largely due to the difficult interest rate environment in the Encavis Asset Management business and delayed commissioning. In the current financial year, Encavis has already successfully connected seven projects to the grid; these and some other wind and solar parks experienced delays, in some cases for technical reasons, meaning that planned revenue could not yet be realized this year.
On the other hand, the drop in revenue can be explained by less favorable meteorological conditions, particularly in Southern Europe. After above-average weather for wind and solar in the previous year, which was well above the standard weather we regularly assume (a 30-year average), the weather this year has so far been significantly worse than the expected standard weather across Europe. Additionally, throughout 2024, electricity prices have consistently been lower than in the previous year due to war and energy crisis. Furthermore, the first half of 2024 saw the first revenue-reducing shutdowns of parks due to negative electricity prices in Spain and Finland. The prior-year period also included a significant retroactive payment at the Dutch solar parks for 2022, which had the effect of increasing revenue.
These effects, which are then reflected in the results of the other KPIs, could not be compensated for by the newly acquired wind farms and solar parks or those connected to the grid, nor by the significant increase in revenue in the Service segment. Revenue of EUR 49.2 million was generated here, exceeding the previous year's figure by EUR 9.2 million (+23%) (previous year: EUR 40.0 million).
In line with the results of the first nine months of the 2024 financial year, operating cash flow from operating activities fell by around EUR 10.2 million1) (-6%1)) to around EUR 173.5 million1) compared to the previous year's figure of EUR 183.7 million. This results in an operating cash flow per share of EUR 1.071) after nine months of the 2024 financial year (previous year: EUR 1.14). The equity ratio as of September 30, 2024 fell to 30.9% compared to the previous year's figure of 33.8% and the year-end 2023 figure of 33.2%.
Due to the developments described above, the Management Board is adjusting the guidance for the current financial year 2024 for the following KPIs:
- Revenue: EUR 425 million (-8%, original guidance: > EUR 460 million)
- EBITDA: EUR 260-270 million (-13%- -10%, originally: > EUR 300 million)
- EBIT: EUR 135-145m (-23% - -17% originally: > EUR 175m)
- Operating cash flow: EUR 225-235 million (-13% - -10%, originally: > EUR 260 million)
- Operating cash flow per share: EUR 1.39 - 1.45 (-14% - -10%, originally: EUR 1.62)
1) excluding costs of project Elbe/KKR
*) Explanations and calculation of the adjusted operating earnings figures can be found in the Annual Report / Consolidated Financial Statements 2023 of Encavis AG beginning on page 17 and at page 37.
The Annual Report / Consolidated Financial Statements 2023 of Encavis AG are available at:
https://www.encavis.com/en/green-capital/investor-relations/financial-reports
About ENCAVIS:
The Encavis AG (Prime Standard; ISIN: DE0006095003; ticker symbol: ECV) is a producer of electricity from Renewable Energies listed on the SDAX of Deutsche Börse AG. As one of the leading independent power producers (IPP), ENCAVIS acquires and operates (onshore) wind farms and solar parks in twelve European countries. The plants for sustainable energy production generate stable yields through guaranteed feed-in tariffs (FIT) or long-term power purchase agreements (PPA). The Encavis Group’s total generation capacity currently adds up to around 3.6 gigawatts (GW), of which around 2.2 GW belong to the Encavis AG, which corresponds to a total saving of around 0.8 million tonnes of CO2 per year stand-alone for the Encavis AG. In addition, the Group currently has more than 1.2 GW of capacity under construction, of which around 900 MW are own assets.
Within the Encavis Group, Encavis Asset Management AG offers fund services to institutional investors. Another Group member company is Stern Energy S.p.A., based in Parma, Italy, a specialised provider of technical services for the installation, operation, maintenance, revamping and repowering of photovoltaic systems across Europe.
ENCAVIS is a signatory of the UN Global Compact as well as of the UN PRI network. Encavis AG’s environmental, social and governance performance has been awarded by two of the world’s leading ESG rating agencies. MSCI ESG Ratings awarded the corporate ESG performance with their “AA” level and ISS ESG with their “Prime” label (A-), the Carbon Disclosure Project (CDP) with its Climate Score “B” and Sustainalytics with its “low risk” ESG risk rating.
Additional information can be found at www.encavis.com
Contact:
ENCAVIS AG
Dr. Oliver Prüfer
Press Officer & Manager Public Relations
Tel.: + 49 (0)40 37 85 62 133
E-Mail: oliver.pruefer@encavis.com
www.encavis.com
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