ENCAVIS shows 2020 strong growth and forecasts an even increasing growth for 2021e
Revenue increase by 7% to EUR 292.3 million (2019: EUR 273.8 million)
Operating cash flow increases by 12.5% to EUR 212.9 million (2019: EUR 189.3 million)
Operating earnings per share (EPS) again on record high of previous year at EUR 0.43
Management Board again confirms growth strategy >> Fast Forward 2025
Management Board and Supervisory Board again propose an increase of the dividend for 2020 to EUR 0.28 per share (2018: EUR 0.26)
Hamburg, March 23, 2020 - MDAX listed Encavis AG (ISIN: DE0006095003, Prime Standard, ticker symbol: ECV) achieved strong operating growth in 2020 and exceeded the guidance in all Key Performance Indicators (KPI) of the Group. On-schedule connection to the grid,despite COVID-19 and the corresponding obstacles and delays, of the two largest solar parks La Cabrera and Talayuela in Spain, with a combined generation capacity of 500 megawatts (MW) in total, secures an even stronger growth in revenue and earnings in current fiscal 2021e.
Encavis AG once again surpassed the revenue and operating earnings forecasts in 2020. Wind parks contributed around EUR 14.4 million and the Group's asset management around EUR 4.9 million to the revenue growth of EUR 18.5 million. Revenue of the Group's solar parks only slightly declined due to the additional revenue from the Spanish solar park La Cabrera compensating partially the less favourable meteorological conditions compared to last year's record level. Particularly noteworthy is the strong increase of operating cash flow by around EUR 23.6 million whereof asset management contributed significant EUR 10.3 million.
"The continuing expansion of the portfolio and the high degree of availability of our installations contributed to us being able to achieve our forecast targets in spite of more or less average meteorological conditions in many parts of Europe," Dr Christoph Husmann, CFO of Envcavis AG, underlined the reliability and stability of the more than once confirmed guidance of the Group throught the past year.
Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by around 3% to EUR 224.8 million compared to the previous year, with an ongoing EBITDA margin above plan of 77% (previous year: around 79.5%). The wind and solar parks each achieved operating EBITDA margins of 80% (wind) and 81% (solar). The increase in EBITDA benefited overall from the continuing expansion of the portfolio and the income from the sale of minority interests in three wind parks in Austria. The operating result from operating activities (EBIT) reached again stable and record high previous year's level of EUR 132.2 million as well as fully in line EBIT margin of a good 45% (previous year: a good 48%), despite less favourable meteorological conditions. Resulting in an operating earnings per share (EPS) at last year's record of 43 euro cents despite a currently increased number of shares. The number of shares increased due to the encouraging high ratio of stock dividends of 61.5% last year, adding around 1.4 million shares, and a small capital increase in December 2019 (additional 5 million shares) being calculated in now completely. The current equity ratio of 26.6% is significantly above plan and also above previous year (26.3%).
The Management Board and Supervisory Board will propose an increased dividend of EUR 0.28 per share (previous year EUR 0.26) to the Annual General Meeting. This will also be offered again as scrip dividend in shares or for cash distribution.
The current 2021 financial year will benefit from the continuing expansion of the portfolio especially from the first-time effect of full-year revenue and earnigs contribution of the two major projects in Spain. The Management Board expects an even stronger increase in revenue to more than EUR 320 million for the current 2021 financial year. The company plans to achieve operating earnings (EBITDA) of more than EUR 240 million and operating EBIT of more than EUR 138 million. This would result in operating earnings per share (EPS) of 0.46 Euros. The operating cash flow is expected to exceed EUR 210 million to achieve again the significantly above plan realized figure of the previous year.
Encavis consequently follows its growth strategy >> Fast Forward 2025 despite the restrictions in daily life due to COVID-19. Even in these difficult times, the Group feel well positioned to achieve its long-term goals.
"The organic growth of our portfolio of wind and solar parks forms the basis for the implementation of >> Fast Forward 2025, our growth strategy. To realise our growth targets we focus on industrial customers and their need for power purchase agreements (PPAs). To this end, we have combined the expertise into our own PPA Origination department beginning of this year," Dr Dierk Paskert, CEO of Encavis AG, commented the Group-internal concentration on future "Green Energy" sales.
The Annual General Meeting is scheduled for May 27, 2021. In order to protect the health of the shareholders and employees and to slow down the chain of infection the AGM will take place as a virtual event without the physical participation of any shareholders.
Encavis AG (Prime Standard; ISIN: DE0006095003; ticker symbol: ECV) is a producer of electricity from renewable energies listed on the MDAX of Deutsche Börse AG. As one of the leading independent power producers (IPP), ENCAVIS acquires and operates solar parks and (onshore) wind farms in ten 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 2.8 gigawatts (GW), corresponding to an amount of avoided 1.26 million tonnes of CO2 per annum. Within the Encavis Group, Encavis Asset Management AG offers fund services to institutional investors.
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 "AA" and ISS ESG with their "Prime" label.
Additional information can be found on www.encavis.com
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