DGAP-News

ENCAVIS AG - Seite 2

Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) were EUR 39.3 million in the first three months of the 2021 financial year (previous year: EUR 50.6 million). The decline in earnings was based on the combination of a growth-related increase in costs for the Spanish parks additionally connected to the grid and the absence of a non-recurring effect in the same quarter of the previous year coupled with a drop in revenue due to the aforementioned weather effects. The expansion of the PV segment has further heightened this effect on our earnings structure. This effect was further magnified by a lack of revenue in wind segment due to very unfavourable meteorological conditions. Not only were the wind conditions worse than the long-term 20-year average, they were also significantly lower than the levels seen in the same period in the previous year, which was characterised by particularly good meteorological conditions.

Operating earnings before interest and taxes (operating EBIT) stood at EUR 13.0 million after three months (previous year: EUR 28.1 million). The decline in earnings is attributable to the aforementioned effects in this case as well.

Cash flow from operating activities was virtually on a par with the previous year at EUR 39.9 million (previous year: EUR 50.8 million), taking into consideration the capital gains tax refund from 2018 in the amount of EUR 9.0 million, which had a positive effect on the operating cash flow in the first quarter of 2020.

"The fundamental revenue and earnings growth in the current year is based on the organic growth of our wind and solar park portfolio as planned. Nevertheless, our long-standing experience with seasonal variations in weather effects allow us to unequivocally confirm the guidance for the current year, despite the weak weather conditions in the first quarter", Dr Christoph Husmann, CFO of Encavis AG, clarified the first quarter of Encavis.

The latest acquisition of the wind farm Paltusmäki, already connected to the grid, enlarges Encavis' own generation capacities in the wind segment by 21.5 megawatts (MW). In parallel it adds with Finland also another interesting growth market for bilateral energy contracts to the already broadly diversified portfolio of countries.