European Energy sells 53-MW Swedish wind park, adjusts forecast

The Zinkgruvan wind park. Image by: European Energy.

December 20 (Renewables Now) - Danish renewables developer European Energy A/S has finalised the sale of the 53.2-MW Zinkgruvan wind farm in Sweden to a Germany-based asset management company.

The divested plant is located about 70 km north of Linkoping, near the northern end of the Vattern Lake, and consists of 14 GE turbines of 3.8 MW each. The wind park has the capacity to generate enough power to meet the annual consumption of about 40,000 local homes and has a contract to sell that electricity to “a large international utility” over a period of 10 years.

European Energy noted that the sale has contributed positively to its earnings and for this reason the company is adjusting its financial outlook for 2019. Now, it guides for a pre-tax profit of between EUR 35 million (USD 38.9m) and EUR 37 million versus its prior forecast for EUR 30 million-35 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) are seen at EUR 45 million to EUR 47 million, rather than EUR 40 million-45 million.

The company added that in 2020 it expects an even higher EBITDA, through pre-tax profit is still seen at about the same level.

(EUR 1.0 = USD 1.112)

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