German wind and solar park operator Encavis AG (ETR:CAP) today reported increased first-quarter EBITDA and revenues and confirmed its 2020 outlook as its business took a relatively small hit from the COVID-19 crisis.
The company said in a bourse filing that the operation of its wind and solar fleet, both owned by the company and under asset management, was not disturbed by the coronavirus pandemic. The weather conditions in the three months were weaker than those in the year-ago period but the portfolio expansion partly compensated for those effects. Overall, the COVID-19 fallout had a “comparatively small” effect on the company’s business development, it said as it reiterated its 2020 financial forecast.
Encavis closed the January-March quarter with results that exceeded all of its targets. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 13.2% in annual terms to EUR 50.6 million (USD 55.5m), and EBITDA margin reached 78%. Revenues improved by 9.7% to EUR 65.2 million, mainly thanks to the acquisition of 81 MW of Danish wind parks and the full-year effect of capacity connected to the grid through 2019. Revenues from wind farms in Germany and France lifted the overall result and offset the lower contribution from the solar business due to decreased solar radiation levels in France and Italy.
More details about the company’s performance are available in the table.
| Amounts in EUR, except percentages |
Q1 2020 |
Q1 2019 |
| Revenues |
65.2m |
59.5m |
| -- of which solar |
34.7m |
36.9m |
| -- of which wind |
27.2m |
21.7m |
| Operating EBITDA |
50.6m |
44.7m |
| EBITDA margin (%) |
78 |
76 |
| Operating EBIT |
28.1m |
23.4m |
| Operating EPS |
0.08 |
0.05 |
| Operating cash flow |
50.8m |
15.9m |
"Once again, we have proven that we are growing profitably and not only keeping our margins stable, but that we have been able to increase them despite the already high level and despite the corona pandemic. We are extremely satisfied with the results achieved in the first quarter of 2020," said CEO Dierk Paskert.
Encavis continues to expect 2020 revenues to exceed EUR 280 million and mark an increase from the EUR 273.8 million booked in 2019. Operating EBITDA is forecast to surpass EUR 220 million and operating EBIT is seen at over EUR 130 million. Operating cash flow is anticipated to be higher than EUR 200 million.
(EUR 1.0 = USD 1.096)
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The Budel solar park. Image by: Solarcentury (www.solarcentury.com).
