EQS-News: ENCAVIS AG: Results for Q1/2024 are, as expected, below the comparative period of the previous year, but still generally in line with plan – Management Board confirms guidance for the full year 2024

Corporate News

Results for Q1/2024 are, as expected, below the comparative period of the previous year, but still generally in line with our plan – Management Board confirms guidance for the full year 2024
 

Hamburg, 14^th May 2024 – MDAX-listed wind and solar farm operator Encavis AG (Prime Standard; ISIN: DE0006095003, ticker symbol: ECV) reports revenue and earnings in the first quarter of 2024 to be significantly lower than in the same period of the previous year, but generally on target. Operating revenue and operating earnings*⁾ in the same period of the previous year (Q1/2023) had benefited from a positive one-off effect of around EUR 8.1 million from the retroactive compensation of the subsidies for the Dutch solar parks in 2022, more favourable meteorological conditions as well as comparatively higher electricity prices. In Q1/2024 average electricity prices have fallen by around 11% across the entire generating portfolio.

The Management Board confirms the guidance for the financial year 2024, as already published with the Consolidated Financial Statements 2023. Further revenue growth at Stern Energy, expanded power generation capacities, and an increase in revenue at Encavis Asset Management in the current financial year is expected to largely compensate for the sharp fall in electricity prices. Overall, a moderate improvement of the essential key figures of the Group is expected for the financial year 2024.

The results in detail: In the first three months of the financial year 2024, the Group has generated around 741 gigawatt hours (GWh) of green electricity, compared to 753 GWh in the first quarter of 2023 - a decrease in overall production of around 2%, varying by segment. The PV segment recorded a decline in electricity production of around -9% in Q1/2024 from already existing assets, and the wind segment of around -6% (-22 GWh) - the latter being almost entirely driven by the divestment of the two wind farms Sohland and Greußen (-20 GWh). Due to newly connected wind farms, the wind segment has achieved an overall increase in electricity production of +6% in Q1/2024 compared to Q1/2023.

Net operating revenue*⁾ of EUR 86.6 million were around 12% lower than the previous year's figure of EUR 98.8 million after deduction of electricity price caps in the previous year's first quarter. Both operating revenue and operating earnings*⁾ in the same period of the previous year (Q1/2023) had benefited from a positive one-off effect of approximately EUR 8.1 million from the retroactive compensation of the subsidy for the Dutch solar parks in 2022. At EUR 45.3 million (previous year: EUR 55.4 million), 52% of net operating revenue*⁾ for Q1/2024 were distributed by the solar park portfolio and around 33% by the wind farm portfolio of the Group with EUR 28.6 million (previous year: EUR 31.3 million). In addition to the one-off effect described above, the decline in net operating revenue*⁾ of the solar park portfolio of around 18% is based on significantly lower electricity prices compared to the previous year. Naturally, the first quarter of each year is subject to considerable meteorological fluctuations and has resulted in lower electricity production in this segment in Q1/2024 than in the previous year's first quarter. The PV Services segment, which continues to grow strongly, has increased revenue in Q1/2024 by around 25% to EUR 12.9 million (previous year’s first quarter: EUR 10.3 million).

Operating earnings before interest, taxes, depreciation and amortisation (operating EBITDA*⁾) in the first three months of the financial year 2024 were at EUR 48.5 million, a significant decrease of around 25% compared to the previous year's comparable figure of EUR 64.3 million. The Operating financial result decreased by around EUR 5.9 million to a total of around EUR -21.7 million (previous year: EUR -15.8 million) due to investments in portfolio growth. This has led to a result from operating activities (operating EBIT*⁾) of EUR 18.2 million, which is significantly lower than the previous year's figure of EUR 35.3 million. A fluctuation in key operating figures*⁾ of this nature in the first quarter is not unusual for a company like Encavis, whose primary driver is the installed solar PV capacity. The first quarter shows low solar irradiation and therefore low production and revenue, while expenses are largely fixed. 

Overall, Encavis has generated a consolidated operating profit after taxes*⁾ of EUR -5.8 million (previous year: EUR 16.6 million). This is mainly due to the one-off, price, and weather effects described above.

In line with the earnings development in the first quarter of 2024, cash flow from operating activities decreased by around 30% to EUR 36.3 million (previous year: EUR 51.8 million). This resulted in an operating cash flow per share of EUR 0.23 in the first quarter of 2024 (previous year: EUR 0.32).

The equity ratio as of 31 March 2024 increased slightly to 33.5% from 33.2% at year-end 2023, but significantly compared to the same quarter of the previous year of 30.7%.

“We are looking back at a successful first quarter of 2024 despite the less favourable weather conditions and decreased power prices. Across the Group, both Encavis AG and Encavis Asset Management have signed long-term Power Purchase Agreements (PPAs) at national and European level for around 2,600 gigawatt hours (GWh) of green electricity from Renewable Energy for ten years. In parallel, we have started the construction of the two currently largest solar parks of Asset Management in Bartow with a planned generation capacity of around 270 megawatt hours (MWh) per year and Encavis AG in Borrentin with a planned generation capacity of around 119 MWh per year. Commissioning of the two solar parks is planned for summer 2025 in Bartow and autumn 2024 in Borrentin,” underlined Dr Christoph Husmann, Spokesman of the Management Board and CFO of Encavis AG, the successful first quarter of 2024.

The Management Board confirms the guidance for the financial year 2024, as already published with the Consolidated Financial Statements 2023. Further revenue growth at Stern Energy, expanded power generation capacities, and a further increase in revenue at Encavis Asset Management in the current financial year are expected to largely compensate for the sharp fall in electricity prices, resulting in a moderate increase in essential key figures of the Group for the financial year 2024.

This year's Annual General Meeting of the Company will take place on 5 June 2024 in physical presence at the Privathotel Lindtner in Hamburg.
 

*) Explanations and calculation of the adjusted operating earnings figures can be found in the Annual Report / Consolidated Financial Statements 2023 of Encavis AG beginning on page 17 and on page 37.

The Annual Report / Consolidated Financial Statements 2023 of Encavis AG are available at:
https://www.encavis.com/en/green-capital/investor-relations/financial-reports

About Encavis:
The Encavis AG (Prime Standard; ISIN: DE0006095003; ticker symbol: ECV) is a producer of electricity from Renewable Energies listed on the MDAX of Deutsche Börse AG. As one of the leading independent power producers (IPP), ENCAVIS acquires and operates (onshore) wind farms and solar parks in twelve European countries. The plants for sustainable energy production generate stable yields through guaranteed feed-in tariffs (FIT) or long-term power purchase agreements (PPA). The Encavis Group’s total generation capacity currently adds up to more than 3.5 gigawatts (GW), of which around 2.2 GW belong to the Encavis AG, which corresponds to a total saving of around 0.8 million tonnes of CO₂ per year stand-alone for the Encavis AG. In addition, the Group currently has around 1.2 GW of capacity under construction, of which around 830 MW are own assets.

Within the Encavis Group, Encavis Asset Management AG offers fund services to institutional investors. Another Group member company is Stern Energy S.p.A., based in Parma, Italy, a specialised provider of technical services for the installation, operation, maintenance, revamping and repowering of photovoltaic systems across Europe.

Encavis is a signatory of the UN Global Compact as well as of the UN PRI network. Encavis AG’s environmental, social and governance performance has been awarded by two of the world’s leading ESG rating agencies. MSCI ESG Ratings awarded the corporate ESG performance with their “AA” level and ISS ESG with their “Prime” label (A-).

Additional information can be found on www.encavis.com

Contact:
Encavis AG
Jörg Peters       
Head of Corporate Communications Investor Relations
Tel.: + 49 40 37 85 62 242     
E-Mail: [email protected]  
http://www.encavis.com