Falck Renewables' Q1 results improve despite weak winds

Falck Renewables SpA (BIT:FKR) last week reported a pre-tax profit of EUR 19.5 million (USD 21.3m) for the first quarter of 2017, which is a rise of 24.8% from a year earlier.

The Italian renewable energy company said its improved results are mainly due to a significant increase in the average prices of electricity sales in Italy, Spain and the UK, which made up for weak wind conditions and the negative effect of the devaluation of the pound against the euro. The higher profit also reflects lower financial costs.

EBITDA rose 6.4% to EUR 45.3 million, while revenue was up 5.9% to EUR 77.5 million in spite of a decline in generation. The company produced 557 GWh of power in the period, down 2% year-over-year, with wind generation falling 3% to 497 GWh, even as its installed capacity increased to 785 MW from 725.7 MW in the first quarter of 2016. The capacity has grown further following the end of the quarter to 821 MW.

Falck Renewables said it is currently assessing some investment opportunities in new markets -- the Nordic countries, northern Europe and the US. Under its 2017-2021 business plan, unveiled last year, the firm expects to boost development and investments in new wind and solar power plants, including in new markets.

(EUR 1 = USD 1.090)

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