BayWa's renewables unit posts 9-mo op loss but sees improvement in Q4
Source: BayWa re renewable energy GmbH
The renewables unit of German diversified group BayWa AG (ETR:BYW6) has turned to an EBIT loss in the first nine months of the year as project sales went slower compared to the same period of 2017.
BayWa, though, expects to sell around 450 MW of solar and wind farms in the final quarter of the year and thus compensate for the weaker nine months.
BayWa’s financial report shows a EUR-20.9-million (USD 23.5m) loss before interest and tax for the renewable energy business unit in January-September 2018 versus earnings of EUR 49.9 million a year back.
The revenues of this particular business unit went down 2.1% year-on-year to EUR 827 million as BayWa r.e. renewable energy GmbH sold just 47 MW of projects during the period. For comparison, the firm had divested some 250 MW of wind and solar parks in the same period of 2017.
The decline in revenues at the renewables arm dragged down the top line of the group’s whole energy segment, in part offsetting a 6.1% increase in conventional energy revenues. Thus, the energy segment managed to lift its sales by 3.3% to EUR 2.58 billion.
With 450 MW of expected sales in the closing quarter of 2018, the group said it reaffirms its positive outlook for the full year. BayWa plans to achieve Group EBIT on par with that in 2017.