European Energy returns to Q3 profit

The Zinkgruvan wind park. Image by: European Energy.

November 29 (Renewables Now) - Danish renewables developer European Energy A/S booked a third-quarter net attributable profit of EUR 4.05 million (USD 4.5m) after losing EUR 373,000 a year back and confirmed its outlook for 2019.

The company said the three months were a period of continued positive development as it managed to expand its global presence with the opening of new offices in Malmo, Sweden, and Manchester and Glasgow in the UK, along with a regional office in Northern Jutland in Denmark. In Germany, the company acquired wind project developer and operator AEZ Group, getting hold of an over 100-MW pipeline of wind and solar repowering projects.

“Both solar and wind has reached grid parity in several markets and are close to this milestone in others. This means the industry no longer depends on political decisions and therefore it has become easier to commit long term to specific markets,” said CEO Knud Erik Andersen. He added that this expansion fits European Energy’s goal to install 1 GW of renewables annually.

The table below contains details on the company's financial performance in Q3.

Results in EUR million Q3 2019 Q3 2018
Revenue 4.96 5.06
Gross profit 7.66 5.29
EBITDA 3.85 2.76
Operating profit (EBIT) 1.83 2.20
Pre-tax profit (loss) 5.52 0.76
Group share of profit (loss) 4.05 (0.373)

During the quarter, European Energy signed off-take deals with Internet giant Google LLC for solar parks in Denmark and tied to the grid a 22-MW solar plant in Troia, Italy. At the end of September, it had 298 MW of installed capacity as compared to 247 MW at the end of 2018’s third quarter. Wind accounts for 272 MW of the total.

Electricity sales were responsible for 41% of the group’s total gross profits in July-September when 92.2 GW of power from wind and solar parks was sold.

For 2019, European Energy still expects to book pre-tax profit of between EUR 30 million and EUR 35 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of EUR 40 million-45 million.

(EUR 1.0 = USD 1.101)

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