ENCAVIS AG above prior year despite weaker weather conditions - Executive Board confirms positive outlook 2021


DGAP-News: ENCAVIS AG / Key word(s): Interim Report/Expansion 13.08.2021 / 07:00 The issuer is solely responsible for the content of this announcement. Corporate NewsENCAVIS above prior year despite weaker weather conditions -Executive Board confirms positive outlook 2021Hamburg, August 13, 2021 - MDAX-listed

DGAP-News: ENCAVIS AG / Key word(s): Interim Report/Expansion
13.08.2021 / 07:00
The issuer is solely responsible for the content of this announcement.

Corporate News

ENCAVIS above prior year despite weaker weather conditions -
Executive Board confirms positive outlook 2021

Hamburg, August 13, 2021 - MDAX-listed Hamburg-based wind and solar park operator Encavis AG (ISIN: DE0006095003, Prime Standard, stock exchange symbol: ECV) continues to grow and is on target with the revenues and results achieved in the first six months of fiscal year 2021. Overall, weather conditions in the first half of the year were weaker than in the same period of the previous year (-13% in electricity production of the previous year's portfolio), but still at plan level. The Executive Board therefore reconfirms both the full-year 2021 forecast published in March 2021 and the >> Fast Forward 2025 growth strategy.

The Company generated revenues of 162.2 million euros in the first six months of fiscal year 2021 (previous year: 154.8 million euros). This corresponds to an increase of 7.4 million euros, or around 5%. This was mainly due to the revenue contribution of the two large-scale Spanish solar parks "La Cabrera" (200 MWp) and "Talayuela" (300 MWp) amounting to around 16.6 million euros. The Spanish parks were thus able to more than compensate for the weather-related decline in sales of the existing parks amounting to 12.2 million euros.

"With production now at full capacity, the two Spanish solar parks were able to unleash their full potential for a positive contribution to sales, thus offsetting the decline in sales in our existing parks due to the current weather conditions, which are significantly below the previous year's level," Dr Christoph Husmann, CFO of Encavis AG, explained the positive development in the second quarter of this year.

Revenues of the solar parks in the first half of 2021 totaled 118.5 million euros, about 12.6 million euros higher than the comparable figure for the previous year. In contrast, revenues of the wind farm portfolio were around 7.7 million euros below the previous year's figure at 35.9 million euros. In the Asset Management segment, sales of around 6.8 million euros were significantly higher than in the same period of the previous year (previous year: 5.0 million euros). The Technical Services segment generated sales of 2.2 million euros (previous year: 2.6 million euros).

Operating earnings before interest, taxes, depreciation and amortisation (operating EBITDA) in the first six months of fiscal 2021, at 122.3 million euros, exceeded the comparable prior-year figure of 119.6 million euros by a good 2% despite the fact that the comparable prior-year period was characterised by very good weather conditions - and the first half of 2021 by below-average weather.

The result from operating activities (operating EBIT) of 68.7 million euros was around 5.8 million euros or around 8% lower than in the previous year. This decline is - in addition to the less favorable weather conditions - essentially the result of the scheduled increase in operating depreciation of around 8.5 million euros on newly commissioned photovoltaic and wind power plants. Considered in isolation, Encavis AG achieved operating earnings per share of 0.23 euros in the second quarter of the reporting period - an increase of 21% (plus 0.04 euros) compared to the 2nd quarter of the previous year. Cumulatively, the operating earnings per share amount to 0.18 euros in H1 2021 compared to 0.27 euros of the comparable prior-year period.

Cash flow from operating activities of 109.4 million euros was impacted by the poor weather conditions in the fourth quarter of the previous year and in the first quarter (115.2 million euros). Nevertheless, it exceeded the level of the previous year. There, a capital gains tax refund from 2018 of 9.0 million euros still had a positive impact on the operating cash flow of the first half of 2020.

With now twelve strategic development partnerships, Encavis plans to drive the capacity expansion of the solar park portfolio. Currently, almost 60% of the development projects in the more than 3.0 gigawatts (GW) project pipeline are focused on the three top development regions of Germany, Denmark and Italy. In addition, acquisitions of wind and solar parks already connected to the grid are being expected within current fiscal year 2021.

The current fiscal year 2021 will benefit from the systematic expansion of the portfolio. The first full-year sales and earnings contribution from the two major Spanish projects will have a particularly positive impact. The Executive Board expects a stronger increase in revenue to more than EUR 320 million (+9%) for the current fiscal year 2021. Operating earnings (EBITDA) of more than 240 million euros (+7%) and operating EBIT of more than 138 million euros (+4%) are planned. This would result in operating earnings per share (EPS) of 0.46 euros (+7%). Operating cash flow is expected to reach a value of more than 210 million euros, thus once again matching the previous year's figure, which was significantly higher than planned.

On May 27, 2021, the Company's Annual General Meeting (AGM) resolved to distribute a further increased dividend of 0.28 euros (previous year: 0.26 euros) per voting share for fiscal 2020.

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), which corresponds to a total saving of 1.26 million tons of CO2 per year. 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

Encavis AG
Jörg Peters
Head of Corporate Communications & IR
Tel.: + 49 (0)40 37 85 62 242
E-Mail: joerg.peters@encavis.com

Twitter: https://twitter.com/encavis

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