Encavis records 16% higher operating EBITDA in 2019

Wind Park Gauaschach. Image by Encavis (www.encavis.com).

German wind and solar park operator Encavis AG (ETR:CAP) posted a 16% year-on-year rise in operating earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2019 to EUR 217.6 million (USD 233.8m).

The company explained in a bourse filing on Thursday that the improvement came as a result of the better weather conditions in the past year, the growth of its portfolio and income from the disposal of minority interests in four wind farms. Those effects were enhanced by a drop in operating costs registered mainly due to the first-time application of IFRS 16. The asset management business contributed EUR 5.6 million to the total EBITDA.

Earnings before interest and tax (EBIT) increased by 16% on the year to EUR 132.2 million and revenues were up 10%, both exceeding Encavis’ guidance. The following table contains more details about the company’s performance in 2019.

Amounts in EUR, except percentages	2019	2018
Revenues	273.8m	248.8m
Operating EBITDA	217.6m	186.9m
EBITDA margin (%)	79.5	75
Operating EBIT	132.2m	113.7m
Operating EPS	0.43	0.31

Encavis’ management and supervisory boards will propose an increase in the dividend payout to EUR 0.26 per share from EUR 0.24 in 2018.

For 2020, Encavis forecasts a “moderate” increase in revenues to over EUR 280 million and operating EBITDA that exceeds EUR 220 million. EBIT is seen at around EUR 130 million. Operating earnings per share (EPS) for the year are expected to be EUR 0.41, which could be affected by EUR 0.01 due to eventual delay in the construction of projects in Spain.

The German firm added it is well-positioned to pursue its 2025 strategy, in spite of the restrictions caused by the coronavirus outbreak. It will, however, postpone its annual general meeting, scheduled for May 2020, indefinitely as a precaution against COVID-19.

(EUR 1.0 = USD 1.074)

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