German renewables operator Encavis reported profits of €28m in the first quarter of 2020, a 20% increase on the same period in 2019.
Earnings before interest, tax, depreciation and amortisation rose 13% to €50.6m in the first quarter of this year, while earnings per share rose by 60% to €0.08.
The company attributed good weather conditions to its first quarter result.
The operating results for the first three months show the impact of Covid-19 on Encavis’ business was “relatively small”.
Encavis’ management board expects to “further increase” the financial and earnings figures for the full year 2020 and confirmed the forecast published in March 2020.
The increase in revenue in the first quarter of 2020 by around 9.7% to €65.2m was primarily due to the acquisition of eight wind parks in operation in Denmark with a total capacity of around 81MW in December 2019 and the full-year effect of parks connected to the grid during 2019.
Higher wind volumes in Germany and France boosted revenues. In contrast, lower solar radiation in France and Italy reduced the overall revenue of the solar park portfolio compared to the first quarter of 2019.
Encavis chief executive Dierk Paskert said: “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.
“We will continue with consistency on the path of ambition and the same time, guarantee solid growth for Encavis; ambitious in the market and solid in execution.”
Based on the existing portfolio as of 31 March 2020 the Encavis management board expects revenue to increase to more than €280m in fiscal year 2020, compared with €273.8m in 2019.
The group expects operating EBIT to increase to over €130m in 2020, compared to €132.2m in 2019.