BayWa swings to H1 LBIT from renewables ops

Don Rodrigo solar park. Image by: BayWa re renewable energy GmbH (www.baywa-re.com).

German diversified group BayWa AG (ETR:BYW6) booked a EUR-1.3-million (USD 1.5m) loss before interest and tax (LBIT) for its renewables business in the first half of 2020, against a profit of EUR 500,000 a year back.

The loss could not affect the Energy division’s total earnings before interest and tax (EBIT) for the period, which rose to EUR 16.7 million from EUR 12.1 million a year earlier after an improvement in earnings at the company’s conventional energy operations. The "strong" business involving solar photovoltaic (PV) components also contributed to the positive EBIT in the Energy Segment, the German firm said on Thursday.

Тhe renewable energy segment's revenues increased to EUR 835.8 million from EUR 696.1 million. BayWa has sold 54 MW of project capacity since the start of 2020, including a floating solar park in Bomhofsplas, Netherlands. Its sales goal for the year is 1.2 GW and most of the planned divestments will be carried out in the final quarter, the company said.

The table below contains more details about BayWa’s performance.

Results in EUR million	H1 2020	H1 2019
Group revenue	8,193.7	8,410.6
Energy segment revenue	1,750.8	1,926.8
-- of which Renewable Energies	835.8	696.1
Group EBIT (loss)	53.8	52.2
Energy segment EBIT (loss)	16.7	12.1
-- of which Renewable Energies EBIT (loss)	(1.3)	0.5

BayWa's CEO Klaus Josef Lutz expressed optimism with respect to the COVID-19 crisis. "Overall, BayWa's business development is set to pick up significantly once again, particularly in the Energy Segment on account of the slated project sales," he said.

(EUR 1.0 = USD 1.183)

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