October 31 (Renewables Now) - The renewable energy business of Spanish group Ence Energia y Celulosa SA (BME:ENC) saw its attributable net profit drop by 46.1% year-on-year to EUR 4.2 million (USD 4.7m) in the first nine months of 2019.
Two items that contributed to the profit decline were net financial expenses, containing debt tied to the construction of two biomass-fired plants in Spain, and depreciation and amortisation costs factored in after last year’s acquisition of the 50-MW Puertollano concentrated solar power (CSP) plant in the Spanish province of Ciudad Real.
The same CSP plant helped drive earnings before interest, taxes, depreciation and amortisation (EBITDA) up by 27.7% to EUR 41.6 million in January-September, Ence said in its latest financial report.
Other financial details of Ence’s renewable energy business are presented in the table below:
|in EUR million:||Q3 2019||y/y change||9-mo 2019||y/y change|
|EBITDA margin||33%||0.3 pp||32%||2.1 pp|
|Depreciation and amortisation||(7.0)||63.7%||(20.7)||62.0%|
|Net finance expenses||(3.7)||81.6%||(12.5)||86.6%|
|Attributable net profit||3.0||-26.2%||4.2||-46.1%|
Energy sales volumes rose by 9.5% to 783,334 MWh between January and September, again due to the CSP plant, with added contributions from a repaired and repowered biomass plant in Huelva province.
Ence, whose other business activities include pulp and forestry, has six biomass plants with a combined installed capacity of 170 MW across Spain. It has been running the CSP plant Puertollano since December 2018.
Two new biomass power plants that are currently in construction will add 96 MW in total to Ence’s portfolio. The plants are scheduled for commissioning in January 2020.
(EUR 1.0 = USD 1.11)