European Energy has reported third quarter operating profit of over €6m, compared with just under €2m in the same period in 2019, on the back of increased sales of renewable electricity.
Earnings before interest and tax (EBIT) was €6.4m in Q3 2020 against €1.8m in the same quarter in 2019 and EBITDA was €9.3m in the third quarter of this year compared with €3.8m.
European Energy CEO Knud Erik Andersen said: “We are pleased to report that European Energy delivered significant growth across all recuring activities in the third quarter of 2020, as we maintain our expectations for our annual targets.
“The increased sale of green power was the main driver behind our significant growth. At the end of the third quarter, the revenue from electricity sales increased 73% during the first nine months of 2020 compared to 2019 and exceeded the total sales of the entire financial year of 2019.”
During the quarter, electricity sale revenues from solar assets alone increased more than tenfold compared to the same period in 2019, he added.
In total, more than 1293MW is under construction or ready-to-build across all the company’s solar and wind power portfolios.
Andersen said: “During the quarter, our project pipeline grew by additional 2GW to a total of more than 17 GW of projects under development.
“Therefore, we expect our construction activities to increase further and remain high across the European continent over the coming years.”
During the third quarter of 2020, European Energy closed the divestment of its 50MW solar farm Hanstholmvej situated in the northern part of Jutland, Denmark to LHI Group, which has “contributed positively” to the quarterly results.
The solar park is the first in Denmark to use bifacial modules, and the electricity has been sold on a long-term contract to Apple Inc.
The developer also signed a sales and purchase agreement for the 30MW solar farm Næssundvej, in Denmark, and expects the revenue to be recognised in the fourth quarter of 2020, when the park has been fully constructed and grid-connected.