ENCAVIS AG again above plan after nine months / Guidance confirmed for FY 2019

  • Revenue increases by 11% to EUR 223.4 million (9M/2018 EUR 200.9 million)
  • Operating EBITDA increases by 20% to EUR 185.8 million (9M/2018 EUR 155.3 million)
  • Operating EBIT rises by 21% to EUR 121.8 million (9M/2018 EUR 100.8 million)
  • Operating earnings per share increases by 29% to EUR 0.49 (9M/2018 EUR 0.38)
  • Management Board confirms the updated guidance from end of August this year for the full year 2019


Hamburg, November 25, 2019 - Encavis AG (ISIN: DE0006095003, Prime Standard) again increased all operating earnings figures significantly after nine months. A remarkable success in comparison to the extraordinary strong third quarter of the record-breaking summer last year. The consistent expansion of the generation portfolio in Denmark and The Netherlands as well as the continuing favourable meteorological conditions resulted in an 11% increase in revenue to EUR 22.5 million after nine months of 2019. Due to the continuing positive weather effects, this figure includes additional income of EUR 12.9 million. Despite the weak fourth quarter in general in the largest solar segment, Management Board confirms all operating revenue and earnings figures from sales to earnings per share, including cash flow, of the again uplifted guidance of August 2019 for the full year 2019.

After nine months of 2019, Encavis AG exceeded the targets set for its operating figures. Revenue increased by around 11% to a total of EUR 223.4 million. The increase is attributable both to favourable meteorological conditions and to the expansion of the portfolio during the reporting period. The solar parks contributed around EUR 14.5 million and the wind parks around EUR 5.9 million to this growth. As of September 30, 2019, the portfolio comprised 177 solar parks and 71 wind farms in ten European countries with a generation capacity of around two gigawatts (GW). Thereby ENCAVIS is the largest independent listed power producer (IPP) in the renewable energy sector in Europe.

Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by around 20% year-on-year to EUR 185.8 million. The EBITDA margin was around 83% (previous year: 77%). The increase in EBITDA benefited from the positive meteorological conditions, the expansion of the portfolio and the proceeds from the sale of minority interests in four wind farms, while at the same time other operating expenses declined, mainly due to the first-time application of IFRS 16. Due to the first-time application of IFRS 16, depreciation also includes depreciation on capitalized rights of use from leasing agreements. The operating result from operating activities (EBIT) reached EUR 121.8 million - an increase of 21% compared to the previous year. This corresponds to an EBIT margin of around 55% (previous year: 50%). Operating earnings per share (EPS) increased by around 29% to EUR 0.49 (previous year: EUR 0.38).

Operating cash flow rose slightly by around 3% to around EUR 132.8 million due to non-periodic tax payments of EUR nine million as well as other ultimo effects that impacted the operating cash flow negatively during the year. These effects will be eliminated until year-end.

At the beginning of September 2019, the hybrid convertible bond - which was issued by Encavis Finance B.V. in 2017 - could be tapped through the issue of new bonds with a total nominal value of EUR 53 million. These funds, which were generated within a few hours, are recognised as equity under the International Financial Reporting Standards (IFRS). Therefore the free liquidity increased by another EUR 60 million to some EUR 170 million, including the paid-in surplus. These funds will be used to finance the construction of Talayuela and additional major projects with power purchase agreements. At the same time, increasing the equity base strengthens the ability to negotiate with investors when taking out loans for the acquisition of further solar and wind parks.

Due to the continued positive meteorological conditions after nine months of the current fiscal year, too, the Management Board confirms the updated guidance for the full year 2019, which was again lifted upwards at the end of August. For the current financial year, revenue are expected to rise to more than EUR 270 million and operating EBITDA to increase to more than EUR 218 million. At Group level, operating EBIT is expected to increase to more than EUR 132 million. The operating cash flow is expected to reach a value of more than EUR 198 million. As a result, the forecast for operating earnings per share (EPS) should be at EUR 0.42.