EQS-News: ENCAVIS AG: Preliminary results for the first half of 2024 are, as expected, below the same period last year

Corporate News

Preliminary results for the first half of 2024 are, as expected, below the same period last year

Hamburg, 30^th July 2024 – The MDAX-listed wind and solar park operator Encavis AG (Prime Standard, ISIN: DE0006095003, ticker symbol: ECV) is significantly below the figures of the comparative period of the previous year in terms of revenue and earnings according to preliminary figures for the first half of 2024 (excluding costs of the Elbe/KKR project).

As expected, the price level in the first six months of this year was again below the price level of the first half of 2023. In H1/2024, electricity prices were more than one third (-33%) lower on average across the Group’s entire Europe-wide generation portfolio compared to the same period last year (H1/2023). This price-related expected decrease of the revenue of around EUR 12 million is compounded by the negative volume effect of a further EUR 10 million. Operating revenue and operating earnings*) for the same period last year (H1/2023) benefited from a positive one-off effect in the first half-year of 2023 of approximately EUR 8.7 million from the additional payment of the Dutch feed-in tariff for the previous fiscal year 2022.

The main reason for the lower production volume of 1,656 gigawatt hours (GWh) in the first half of 2024 compared to 1,734 GWh in the first half of 2023 are mainly the first-time and unplanned curtailment of Spanish solar farms due to negative prices, the significantly lower wind yield in almost all major markets as well as fewer hours of sunshine in Southern Europe. In a direct comparison of existing generation capacities (like-for-like) in the first six months of the 2024 financial year, the Group achieved electricity production from Renewable Energy of around 1,604 GWh compared to 1,734 GWh in the first half of 2023. A decrease of around 7.5%, though differing across segments. The PV Parks segment recorded a decrease in electricity production in H1/2024 of around -9% (-102 GWh), mainly due to fewer hours of sunshine in Italy, France and Spain. The decrease in electricity production of the Wind segment in H1/2024 of around -4.5% (-28 GWh) is mainly due to the sale of the two wind farms Sohland and Greußen (-20 GWh). The new generation capacity connected to the grid produced around 52 GWh of electricity in the first six months of this year.

Net operating revenue*) for the first half of 2024, amounting to approximately EUR 205.7 million, were around 20.5 million euros (-9%) lower than the corresponding prior-year figure of EUR 226.2 million euros (after deducting the electricity price caps in the first half of the previous year).

Operating adjusted earnings before interest, taxes, depreciation and amortisation (operating EBITDA*) for the first six months of fiscal year 2024 amounted to 126.1 million euros, a significant decrease of around 25.6 million euros (-17%) compared to the previous year’s figure of 151.6 million euros.

Operating adjusted earnings before interest and taxes (operating EBIT*) for the first six months of fiscal year 2024 amounted to 65.3 million euros, a significant decrease of around 28.2 million euros (-30%) compared to the previous year’s figure of 93.5 million euros.

Operating cash flow decreases in the first six months of fiscal year 2024 significantly by around 17.5 million euros (-15%) to around 96.60 million euros compared to the previous year’s figure of 113.5 million euros.

“We look back on a first half-year of 2024 with an extraordinary combination of weather-related lower energy production, simultaneously lower energy prices as well as partially negative prices that result in grid curtailments. We can not continue in our planning with these extraordinary weather conditions – therefore we expect standard weather conditions for the future. We either can not forecast these grid curtailments that haven’t been there before. The following months will show if the risk to adjust the guidance will increase or decrease,” said Dr Christoph Husmann, Spokesman of the Management Board and CFO of Encavis AG, commenting the half-year results 2024.

Stern Energy's further growth and the addition of new generation capacity will partially offset the again expected significantly lower energy prices and the decline in revenue at Encavis Asset Management. Additional hours with negative prices and grid curtailments could put the achievement of the guidance for 2024 at risk, especially if paired with unfavorable weather conditions and ongoing regulatory interventions. As the impact of these factors is not foreseeable and reflecting the experiences made in the first half-year 2024, the Management Board currently reaffirms the operational guidance for 2024 (excluding costs of the Elbe/KKR project) and expects only a small decline in key operating metrics of the Group for fiscal year 2024.

*) 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 at 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 1.3 GW of capacity under construction, of which around 930 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-), the Carbon Disclosure Project (CDP) with its Climate Score “B” and Sustainalytics with its “low risk” ESG risk rating. 

Additional information can be found at www.encavis.com 

Contact:
Encavis AG
Jörg Peters
Head of Corporate Communications & Investor Relations
Tel.: +49 40 37 85 62 242
E-mail: ir@encavis.com
https://www.encavis.com