European Energy books smaller profits in Q3, keeps 2018 forecast

Ken Teegardin/CC BY-SA 2.0

December 3 (Renewables Now) - Wind and solar developer European Energy A/S on Friday reported a decline in pre-tax profit for the third quarter of 2018 but said the result is in line with expectations and will not affect its full-year guidance.

The Copenhagen-based company closed the July-September quarter with a pre-tax profit of EUR 762,000 (USD 867,000), a drop from EUR 11.6 million a year earlier. In spite of the decrease, full-year pre-tax profit is still expected to range between EUR 26 million and EUR 28 million.

The following table shows more details about the company’s performance.

in EUR million	Q3 2018	Q3 2017	9mo 2018	9mo 2017
Revenue	5.1	96.8	23.6	129
EBITDA	2.8	14.5	8.2	23.4
EBIT	2.2	14.1	6.7	22.1
Profit (loss) before tax	0.8	11.6	1.7	17.1
Group's share of profit for the period (loss)	(0.4)	8.8	0.1	14.1

During the third quarter, the company agreed to offload a 39-MW wind farm and had 249 MW of wind and solar projects under construction. It also had 465 MW of shovel-ready projects. European Energy explained that its results reflect the growth in development and construction and added that most project divestments are expected in the closing quarter of 2018.

"Management is looking forward to another year with good results. However, the risk factors associated with developing and constructing solar and wind projects may cause delays. The overall performance will also depend on factors such as environmental impact assessments, building permits, sudden changes in incentive schemes and the Group’s success in renewable-energy auctions," the company said.

Looking ahead, it reiterated its forecast for 2018 revenues, expecting a top line of EUR 190 million-210 million.

(EUR 1.0 = USD 1.138)

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