European Energy books thin pre-tax profit in Q1 2021

Danish wind and solar developer European Energy A/S posted a net loss of EUR 455,000 (USD 555,000) for the first quarter of 2021, compared to an over EUR-2-million profit a year prior, its financial results show.

The first-quarter profit before the EUR-470,000 tax expense reached EUR 15,000, on lower income coming from power sales and no divestment of energy parks, the company said. A year ago, the pre-tax profit totalled EUR 4.2 million.

The absence of divestment activity also left its mark on revenues and earning before interest, taxes, depreciation and amortisation (EBITDA). Total revenues dropped by 58% year-on-year to EUR 12.1 million, while EBITDA fell 46% to EUR 5.6 million.

Sales of electricity arrived at EUR 10.8 million, down 30% on the year, due to a considerably lower wind resource.

The divestment will resume in the second quarter of 2021, European Energy added.

The company closed the trimester with 1,708 MW of wind and solar projects under construction and ready-to-build stages. It said its construction activity tripled during this period compared to January-March 2020, in line with the strategy to keep more wind and solar farms on own books and gradually expand activities as an independent power producer.

For the full year, European Energy expects EBITDA to stand at EUR 80 million, with pre-tax profit totalling EUR 50 million.

(EUR 1.0 = USD 1.22)

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