BayWa's renewables EBIT grows 8.9% in 2018

The renewables unit of German diversified group BayWa AG (ETR:BYW6) has lifted by 8.9% on the year its earnings before interest and tax (EBIT) to EUR 72.5 million (USD 81.5m) in 2018, the parent said on Friday.

The total accounts for most of BayWa’s energy segment EBIT, which also includes results from classic energy operations. The company’s energy division closed 2018 with EBIT of EUR 96 million, rising 12.9% in annual terms.

Earnings before interest, tax, depreciation and amortisation (EBITDA) at the renewables unit came at EUR 95.8 million, up 2% on a yearly basis.

Renewables brought EUR 1.53 billion in revenues in the past year, or 12% more than in the previous year as BayWa r.e. renewable energy GmbH “saw highly positive development” and fully executed its project development and sales agenda for 2018. The company sold 453 MW of completed systems, as compared to 414.5 MW in 2017. The offloaded solar assets were 324 MW. Additionally, the revenues were positively impacted by the acquisition of utility Clean Energy Sourcing GmbH at end-2017.

BayWa expects its renewables EBIT in 2019 to be significantly higher than that in 2018 as revenues are forecast to grow thanks to the direct marketing of green electricity, the enhanced trading of solar components and the solid project pipeline. The company sees a 660-MW sales project pipeline for 2019, which will include wind, solar and bioenergy assets. The bulk of that capacity will be solar plants totalling 409 MW.

(EUR 1.0 = USD 1.124)

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