Encavis AG with strong earnings increase in the first nine months of the financial year 2018
- Profitable growth path continued
- Increase in revenues to over EUR 200 million (+12%)
- Operating profit (EBIT) comes in at more than EUR 100 million (+8%)
- Management Board confirms earnings guidance for the full year 2018
Hamburg, 26 November 2018 - Based on its preliminary operating results, SDAX-listed Hamburg-based solar and wind park operator Encavis AG continued its profitable growth in the first nine months of the financial year 2018. The company benefited from the consistent expansion of its portfolio of solar and wind parks as well as from favourable meteorological conditions. Especially the electricity production of the solar parks in Germany was more than ten percent higher than in the same period of the previous year due to the record-breaking summer. Total revenues therefore increased by twelve percent to over EUR 200 million (9M 2017: EUR 180 million) in the reporting period. At the same time, Encavis took important strategic steps that will secure the company"s future growth. Among these are the increase in the regional diversification of the portfolio by the market entry in Spain and the successful positioning of Encavis on the dynamic growth market for long-term private power purchase agreements (PPAs). In view of the good results in the first nine months of 2018, the Management Board of Encavis reaffirmed its earnings forecast for the financial year 2018 in total.
Encavis AG was able to increase its revenues from EUR 179.8 million in the first nine months of the previous year to EUR 200.9 million in the first nine months of 2018 (+12%). In addition to new acquisitions and positive price effects on the energy markets, this increase was among other things attributable to the good meteorological conditions especially in Germany, which made a positive earnings contribution of some EUR 6 million in the first nine months. As a result, earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to EUR 155.3 million, up from EUR 142.1 million in the same period of the previous year (+9%). At approx. EUR 100.8 million, total earnings before interest and taxes (EBIT) were about eight percent up on the same period of 2017 (9M 2017: EUR 93.3 million). Operating cash flow in the first nine months also increased by eight percent year-on-year to EUR 128.7 million (9M 2017: EUR 118.8 million).
"The first nine months of the financial year 2018 were extremely successful for us," says Dr. Christoph Husmann, CFO of Encavis AG, commenting on the preliminary results. "We were able to increase all earnings figures again. At the same time, we consistently pushed ahead the expansion of our portfolio. By acquiring the largest solar park in the company"s history in Spain with a total generating capacity of 300 megawatts, we furthermore have successfully positioned ourselves on the growth market for PPAs, which offer attractive returns," Husmann continues.
The acquisition of the solar park in Spain named "Talayuela" with a generating capacity of 300 MW had been announced by Encavis already in early October 2018. This solar park is one of the first parks of Encavis that is operated completely independent of guaranteed feed-in tariffs but on the basis of a long-term private power purchase agreement (PPA). Encavis expects the park to make a contribution to revenues in the amount of about EUR 25 million from the first full year of operation onwards. The Talayuela solar park is part of an exclusive asset pipeline with a total generating capacity of around 1.1 GW over the next three years that Encavis has agreed upon with the British project developer Solarcentury. With the acquisition of the solar park in Spain already one third of this pipeline has been successfully realised within less than one year.
Management Board affirms earnings forecast for FY 2018
On the basis of Encavis" good results in the first nine months of 2018, the Management Board has again confirmed its earnings forecast for the 2018 full financial year. As such, revenues are expected to increase to over EUR 240 million in the financial year 2018. EBITDA are projected to come in at over EUR 175 million, while EBIT should increase to over EUR 105 million. Operating cash flow is expected to reach over EUR 163 million. This would be equivalent to earnings per share of over EUR 0.30.
Information on the preliminary operating results for the first nine months of the financial year 2018
The figures presented pertain only to the company"s operational earnings power; they do not take into account any IFRS-related valuation effects.
The quarterly statement on the results in the first nine months of the financial year 2018 will be published on 30 November 2018. The statement will be available for downloading on the company"s website at www.encavis.com.