DGAP-News: ENCAVIS AG / Key word(s): Quarterly / Interim Statement/Quarter Results
ENCAVIS AG starts 2019 with excellent results
28.05.2019 / 06:51
The issuer is solely responsible for the content of this announcement.
Encavis AG starts 2019 with excellent results
Revenue rise to 59.5 million euros (+ 30 % compared to Q1/2018)
Operating result EBITDA reaches 44.7 million euros (+ 42 % compared to Q1/2018)
Operating result EBIT increases significantly to 23.4 million euros (+ 74 % compared to Q1/2018)
Management Board confirms positive outlook for 2019 as a whole
Hamburg, 28 May 2019 - Encavis AG (ISIN: DE0006095003, Prime Standard), the Hamburg-based solar and wind park operator listed on the SDAX, has closed the first quarter of the 2019 financial year with very good results. The positive development is attributable both to the consistent expansion of the portfolio and to the favourable meteorological conditions. As a result, the Encavis Group was able to generate additional revenues and increase its revenue by almost a third year-on-year to 59.5 million euros. On the basis of the pleasing business performance in the first quarter, excluding the positive weather effects of the first quarter, the Management Board expects to be able to further increase the financial and earnings figures for the 2019 financial year as a whole and confirms the forecast for operating earnings per share (EPS) of more than EUR 0.35.
Encavis AG generated revenue of 59.5 million euros during the first quarter of 2019, compared to 45.9 million euros in the same period of the previous year. Both solar and wind parks contributed to the increase of around 30 percent. In particular, higher solar radiation in Italy and France as well as the increased number of wind turbines in Denmark and Germany generated additional income for the Group. Revenue comprises the feeding of electricity into the grid, the operation of solar and wind parks for third parties and other asset management services.
Operating earnings before interest, taxes, depreciation and amortization (EBITDA) totaled 44.7 million euros in the first three months of fiscal year 2019 - an increase of 42.0 percent compared to the same period last year. The EBITDA margin increased by 6.5 percentage points to a good 75 percent. The operating result from operating activities (EBIT) even rose by 73.6 percent year-on-year to 23.4 million euros.
In contrast, the operating cash flow of 15.9 million euros was 41.5 percent below the previous year's figure. This decline is marked by reporting date effects: In contrast to the same period last year, capital gains tax of around 9 million euros had to be paid for dividend payments from the parks, which will be refunded by the tax office in the course of this year. In addition, a larger incoming payment from Italy of more than 7 million euros was not received until the beginning of April 2019 instead of the first quarter. Adjusted for these effects, operating cash flow exceeded the previous year's level.
"We are extremely satisfied with the results achieved in the first quarter of 2019. Once again, we succeeded in increasing all operating earnings figures very significantly. The basis of this success and our sustained growth is the steady expansion of our portfolio across now ten European countries. This allows us to benefit from changing meteorological conditions in different regions of Europe," said Dr. Dierk Paskert, CEO of Encavis AG, explaining the profitable growth of the Encavis Group.
Encavis AG has significantly expanded its portfolio since the end of the first quarter of 2018. At the end of the reporting period, it comprised a total of 175 solar parks and 69 wind parks in ten European countries with a total generation capacity of just under 2 gigawatts (GW). A share of around 300 megawatts (MW) of the portfolio growth is attributable to the acquisition of the "Talayuela" solar park in Spain, which will be built on an area of around 790 hectares and is expected to be completed in the third quarter of 2020. The open space plant is not only one of the largest in Europe, but also the most important acquisition in the company's history. This milestone marks the successful entry into the growth market for private-sector Power Purchase Agreements (PPAs). Under these Power Purchase Agreements, the electricity produced will be sold over a period of around ten years to a company with a strong credit rating.
"From the first full year of operation, our Talayuela solar park will make an annual contribution to sales of around 25 million euros. The market for such PPAs is characterized by excellent growth prospects. This is not least due to the attractive returns that can be generated with these contractual arrangements. For our Talayuela solar park, for example, we are calculating with an after-tax IRR of more than eight percent," said Dr. Paskert, emphasizing the positive outlook.
Following the positive start to the year in the first quarter of this year, the Management Board expects the growth course adopted to continue and confirm the expected earnings for the 2019 financial year. However, in light of the first-time application of IFRS 16, the guidance for the 2019 financial year, which was published in March 2019, has been adjusted for the resulting purely technical effects. IFRS 16 stipulates a change in the accounting for lease agreements, which results in a positive effect on the earnings indicators operating EBITDA, operating EBIT and operating cash flow. Due to the increase in total assets, the equity ratio decreased by around one percentage point from the time of first-time application of the standard. Having this in mind, the long-term target for the equity ratio has been reduced from 25 to 24 per cent. Including the effects from IFRS 16, the Management Board expects despite the unchanged revenue of more than EUR 255 million an operating EBITDA to exceed EUR 199 million (previously: EUR 190 million). At the Group level, growth in operating EBIT to some EUR 114 million (previously: EUR 112 million) will be anticipated. Cash flow from operating activities of more than EUR 188 million (previously: EUR 180 million) should be reached. Furthermore, the Management Board still expect to generate operating earnings per share of more than EUR 0.35, as IFRS 16 doesn't impact the operating net profit (EPS).
Encavis AG (Prime Standard; ISIN: DE0006095003 / WKN: 609500) is a producer of electricity from renewable sources listed in the SDAX of Deutsche Börse. As one of the leading Independent Power Producers (IPPs), Encavis acquires and operates solar power plants and (onshore) wind parks throughout Europe. The plants for sustainable energy generation generate stable returns through guaranteed feed-in tariffs or long-term purchase agreements (PPAs). Within the Encavis Group, Encavis Asset Management AG specialises in the area of institutional investors. Encavis Technical Services GmbH is the Group's own service unit for the technical management of solar parks.
Further information on the company can be found at www.encavis.com
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