- Revenues increase by 10% to EUR 273.8 million (2018: EUR 248.8 million)
- Operating EBITDA increases by 16% to EUR 217.6 million (2018: EUR 186.9 million)
- Operating EBIT increases by 16% to EUR 132.2 million (2018: EUR 113.7 million)
- Operating earnings per share jump by 39% to EUR 0.43 (2018: EUR 0.31)
- Management Board again confirms growth strategy >> Fast Forward 2025
- Management Board and Supervisory Board again propose an increase of the dividend for 2019 to EUR 0.26 per share (2018: EUR 0.24)
Hamburg, March 19, 2020 - Encavis AG (ISIN: DE0006095003, Prime Standard) once again significantly increased all operating earnings figures in 2019, achieving record figures. This is an outstanding performance in view of the exceptionally strong comparative period, the so-called "summer of the century" of 2018. The continued consistent expansion of the generation portfolio in Denmark and the Netherlands as well as the strong growth of Encavis Asset Management and continued favourable meteorological conditions resulted in a 10% increase in revenue in 2019 in the amount of EUR 25.0 million. Due to the continued positive weather effects, Encavis achieved additional revenues of approximately EUR 10.5 million in 2019 compared to the original forecast and EUR 3.8 million compared to 2018. Particularly noteworthy is the operating margin improvement with continued growth - a clear strength of the long-term business model to achieve economies of scale.
In 2019, Encavis AG once again surpassed the revenue and operating earnings forecasts, which were raised several times during the past year. Solar parks contributed around EUR 13.6 million and wind parks around EUR 5.3 million to the revenue growth of EUR 25.0 million. The Group"s asset management business developed clearly positively with revenue growth of EUR 7.5 million and a positive earnings contribution of EUR 5.6 million to the Group"s EBITDA.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by around 16% to EUR 217.6 million compared to the previous year, with the EBITDA margin rising to 79.5% (previous year: around 75%). The wind and solar parks each achieved operating EBITDA margins of 82% (wind) and 84% (solar). The increase in EBITDA benefited overall from the positive meteorological conditions, the expansion of the portfolio and the income from the sale of minority interests in four wind parks, while at the same time declining other operating expenses, mainly due to the first-time application of IFRS 16. The operating result from operating activities (EBIT) also increased by 16% and reached EUR 132.2 million, also accompanied by a margin increase to a good 48% EBIT margin (previous year: just under 46%). Operating earnings per share (EPS) jumped by around 39% to 43 euro cents (previous year: 31 euro cents) despite an increased number of shares. The number of shares increased due to the encouraging high ratio of stock dividends and a small capital increase of 4.2% in December last year to attract the new major shareholder, Versicherungskammer Bayern. The Management Board and Supervisory Board will propose an increased dividend of EUR 0.26 per share (previous year EUR 0.24) to the Annual General Meeting. This will also be offered again as scrip dividend in shares or for cash distribution.
Due to a delayed tax refund of nine million euros at the end of the year, the operating cash flow increased by only 15.0 million euros to 189.3 million euros - an increase of around 9%. This amount was received in March 2020, so that here too the guidance for 2019 was met.
The current equity ratio of 25.3% is also in line with the forecast, although it is temporarily burdened by the accounting of the Spanish PPAs under IAS 28; without these International Financial Reporting Standards (IFRS), the equity ratio would be 26.9%.
The current 2020 financial year will be particularly characterized by the transition to the PPA markets by the two major projects in Spain. Both of the projects are to be connected to the grid only in the second half of the year. The Management Board expects a moderate increase in revenues to more than EUR 280 million for the current 2020 financial year. The company plans to achieve operating earnings (EBITDA) of more than EUR 220 million and operating EBIT of around EUR 130 million. This would result in operating earnings per share (EPS) of 0.41 Euros. Even a delay in construction progress on the two major Spanish projects in the course of 2020 would at most have a negative effect on earnings per share (EPS) for 2020 of EUR 0.01. The operating cash flow is expected to exceed EUR 200 million.
We consequently follow our strategy >> Fast Forward 2025 despite the restrictions in our daily life due to CoVid-19. Even in these difficult times, we feel well positioned to achieve our long-term goals. For the current financial year, we are expecting moderate growth in revenues and earnings, which is in line with our original forecast before the Corona crisis. Nevertheless, the company is postponing the Annual General Meeting, which was previously scheduled for mid-May 2020, indefinitely in order to protect the health of our shareholders and employees and to slow down the chain of infection.