Falck lifts 2021 EBITDA forecast despite weaker 9mo results

Ken Teegardin/CC BY-SA 2.0

November 15 (Renewables Now) - Italian renewables developer Falck Renewables SpA (BIT:FKR) saw its EBITDA decline by 6.4% on the year to EUR 128.6 million (USD 147.2m) in the first nine months of 2021 due to higher costs and decreased wind power production, mainly in the UK, France and the Nordics.

Nevertheless, the company lifted its full-year projections for earnings before interest, tax, depreciation and amortisation (EBITDA), now expecting a result of between EUR 196 million and EUR 205 million. Its previous guidance stood at EUR 192 million-202 million. Net income attributable is seen to be 14%-16% of EBITDA, against 16%-17% previously. In terms of capacity, Falck anticipates having some 1,430 MW-1,450 MW of installed and under-construction assets at end-2021, while its initial forecast was for 1,400 MW-1,450 MW.

During January-September, the Italian company recorded revenues of EUR 348.2 million, marking an increase of EUR 275.8 million a year before. Almost half of the total came from the wind power segment, which brought EUR 184 million. The division improved its top line by 4.8% in annual terms thanks to the commissioning of new capacity in the US and increased power sale prices in Italy, Spain, Norway and the UK.

Revenues from photovoltaic (PV), biomass and waste-to-energy operations rose by 27.6% to EUR 62.5 million.

Further details about Falck’s financial performance are available in the table.

Amounts in EUR million Q3 2021 Q3 2020 9mo 2021 9mo 2020
Revenues 114 80.6 348.2 275.8
EBITDA 27.9 31.2 128.6 137.4
Operating profit 3.3 10.5 57.9 72.8
Profit (loss) before tax (6.3) 1.9 30.5 42.5

Falck added 185.7 MW of new capacity in the first nine months of 2021 and had a total of 1,283 MW at end-September, of which 1,037 MW is wind power. Its pipeline of projects under development amounted to 7,200 MW.

“2021 undoubtedly marks a major turning point in our business strategy, with our pipeline undergoing significant growth and increased technological and geographical diversification. We have greatly exceeded our annual target, more than doubling the pipeline in comparison with December 2020, and increasing our growth target for 2025 to 20 GW,” said CEO Toni Volpe.

(EUR 1.0 = USD 1.145)

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