Encavis' H1 revenues grow, full-year forecast confirmed

German wind and solar park operator Encavis AG (ETR:CAP) reiterated its 2020 projections after booking “significant” year-on-year increases in revenue and cash flow in the first half of the year.

The company said in a press release on Wednesday that the coronavirus pandemic has not affected the generation of its wind and solar parks. It explained that a contribution following the acquisition of several wind farms in Denmark has helped it lift its revenues by 8% in annual terms to EUR 154.8 million (USD 182.8m).

Encavis’ operating earnings before interest, taxes, depreciation and amortisation (EBITDA) in January-June came at EUR 119.6 million but were EUR 1.2 million below the previous year’s total. This was due to a negative meteorological effect without which the result would have represented a 2% increase on a yearly basis. The year-ago figure also included a positive contribution of EUR 5.9 million from the sale of minority interests in a wind farm portfolio, Encavis pointed out.

Operating earnings before interest and tax (EBIT) declined to EUR 74.5 million from EUR 78.2 million a year back. Operating cash flow, meanwhile, jumped by 51% to EUR 115.2 million.

Commenting on the progress of its 300-MW Talayuela and La Cabrera solar projects in Spain, the company said that the power plants will be hooked to the grid on schedule in the third and fourth quarters of this year. Some additional costs totalling EUR 500,000 will occur as the construction process was accelerated following a temporary halt due to the COVID-19 lockdown.

For 2020, Encavis continues to expect revenues to exceed EUR 280 million and mark an increase from the EUR 273.8 million booked in 2019, based on its portfolio as of end-March and projections for standard weather conditions. Operating EBITDA is forecast to surpass EUR 220 million and operating EBIT is seen at over EUR 130 million. Operating cash flow is seen to be higher than EUR 200 million.

(EUR 1.0 = USD 1.181)

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