SDAX-listed solar and wind farm operator Encavis AG has reported a drop in profitability for the first half of 2020.
Its operating EBITDA figure of €119.6m was €1.2m below the previous year’s, largely due to a negative meteorological effect.
While a positive meteorological effect of €8.2m was measured by the end of June 2020, it was €3.1m below that in H1 2019 (€11.3m).
Encavis said that without this effect, operating EBITDA in the first half of 2020 would have been 2% higher than the comparable figure for the previous year.
In addition, it said the previous year’s figure included a positive earnings contribution of around €5.9m from the sale of minority interests in a wind farm portfolio, whereas the first half of 2020 initially only included the proceeds from the sale of a technical unit (€1.9m).
Finally, the expenses for the virtual stock option programme as a result of the strong increase in the share price have a much stronger impact on the key earnings figures for the first half of 2020 (€-2.8m) than in the same period of the previous year (€-0.5m).
Without these effects, operating EBITDA in the first two quarters of 2020 would have been 8% above the corresponding prior-year figure, the directors said.
It reported that operating EBIT reached €74.5m, compared to €78.2m in the same period of the previous year.
Without the effects mentioned above, operating EBIT would have been 9% higher than in the previous year, the board said.
Encavis also reported significant year-on-year increases in revenue and cash flow after a successful first quarter.
Revenue in the first half of 2020 increased by about 8% to €154.8m mainly due to the acquisition of several wind farms in Denmark.
Its 191 solar parks and 85 wind farms, both owned by Encavis and managed for third parties, produced green electricity unaffected by coronavirus, Encavis added.
The completion of the major projects Talayuela and La Cabrera in Spain, which are still under construction, was accelerated – in contrast to the fears expressed following the lockdown in Spain and the resulting temporary halt to construction.
Encavis AG CEO Dr Dierk Paskert: “As of today we are again assuming that the parks can be connected to the grid on schedule in the third and fourth quarters of 2020.
“Together, the two parks will generate additional costs of almost €500,000 for the acceleration measures.
“This corresponds to a good 0.1% of the total investment sum of around €393m. These costs are thus considerably lower than our initial calculations.”
At €115.2m, the operating cash flow of around €40m is significantly (+51%) above the comparable period of the previous year.
The board expects the growth course taken to continue and reaffirms the sales and earnings forecast for the current fiscal year 2020.
Based on the existing portfolio as of March 31, 2020, and in anticipation of standard weather conditions, it expects revenue to increase to over €280m in fiscal year 2020 (2019: €273.8m, weather-adjusted €263.3m).