Corporate News


ENCAVIS AG again surpasses its guidance with its Consolidated Financial Statements 2023 – Operating Cash Flow 2023 influenced by non-recurring effects

Hamburg, 26 March 2024 – Hamburg-based wind and solar park operator Encavis AG, listed on the MDAX of Deutsche Börse AG (Prime Standard; ISIN: DE0006095003; ticker symbol: ECV) remains on its clear growth path. In the financial year 2023, the Group increased its energy production to around 3,354 gigawatt hours (GWh) despite the weaker meteorological conditions in the first half of 2023. It was thus around 7% higher than in the previous year (3,133 GWh).

In fiscal year 2023, projects and project rights were acquired for around 550 megawatts (MW) of generation capacity, which corresponds to an amount of 1,000 GWh of electricity to be produced annually. With this result, Encavis has outperformed its own target of 750 GWh by one third.

All financial key figures for 2023, except for operating cash flow, exceed the guidance, even if – with the exception of EPS – they are below the extraordinary high figures for the exceptional year 2022. Here are all operating key figures in a year-on-year comparison:

Operating earnings before interest and taxes (operating EBIT) decreased only marginally to 194.3 million euros (previous year: 198.3 million euros) and again exceeded the guidance of “more than 185 million euros” by a good 5 %. Despite the growth, a slight decline in operating financial result and significantly lower taxes on income and earnings compared to the exceptionally strong previous year resulted in operating earnings per share of EUR 0.60, which is in line with guidance and the previous year's level (EUR 0.60 each). In these turbulent times, Encavis' business model continues to be very robust – with operating earnings per share (operating EPS) at the previous year's level despite lower net revenue than in the prior year.

The equity ratio as of 31 December 2023 increased from 28.1 % to 33.2 % year-on-year. In this regard, the fully retained profit of 2022 also has a positive impact.

Despite the reduced operating cash flow from operating activities in 2023, totaling EUR 234.9 million (previous year: EUR 327.2 million), the Group again had cash at its disposal at year-end 2023 amounting to EUR 375.6 million for the Group's further growth (previous year: EUR 344.4 million). The majority of the decline in operating cash flow is based on the reduction in operating net revenue of wind and solar parks, totaling around EUR 46.4 million (price effect) as a result of significantly lower electricity prices. Higher tax payments, which exceed those of the same period by around EUR 34.2 million, also contribute to the difference in cash flow in 2023 compared to the previous year. In addition, the provisions and liabilities established in the previous year, included for the price caps already announced at the time, which affected EBITDA but did not affect cash flow, also contributed to this difference. These provisions or liabilities led to disbursements in the financial year 2023.

Overall, the operating cash flow for 2023 is therefore below our expectations. Around 20 million euros of the deviation from the guidance, mostly tax claims and claims against guarantors and insurance companies, have been postponed to the current financial year 2024 and some have already been received. A further EUR 12.4 million from the sale of individual assets was not recorded in the operating cash flow but in the cash flow from investing activities. Only 12.7 million euros of tax payments from the previous year 2022, which were reported differently in the plan, thus remain as a difference.

In the light of the Encavis Group’s business strategy, which is geared towards qualitative growth, and the yet again significantly reduced electricity price level, Encavis expects only a moderate overall increase in their KPIs in the 2024 financial year. The Group aims to make up for a large part of the further significant drop in electricity prices through further revenue growth at Stern Energy, expanded wind capacities in Germany and a further increase in revenue at Encavis Asset Management in the current financial year. Most of the recent acquisitions from the previous year will not be completed until the end of 2024. As a result, they will not yet contribute to revenue in 2024. These new projects will be clearly reflected in the key figures in 2025.

Based on the existing portfolio as of 20 March 2024, and in anticipation of standard weather conditions for the 2024 financial year, the Management Board therefore expects a slight increase in operating revenue to over EUR 460 million (2023: EUR 449.1 million after deduction of electricity price caps of EUR 11.5 million). Operating EBITDA is expected to amount slightly more than EUR 300 million (2023: EUR 319.2 million). The Group anticipates operating EBIT of a bit more than EUR 175 million (2023: EUR 194.3 million). The Group expects operating cash flow of EUR 260 million (2023: EUR 234.9 million). The operating cash flow per share is therefore expected to amount to EUR 1.62 (2023: EUR 1.46). Overall, the Group remains fully on track for growth in line with the “Accelerated Growth Strategy 2027”.

Encavis AG and Blitz 21-823 AG (hereinafter: Elbe BidCo AG, “BidCo”), a holding company controlled by investment funds, vehicles and/or accounts, advised and managed by Kohlberg Kravis Roberts & Co. L. P. and its affiliated companies (together “KKR”), signed an Investor Agreement on March 14, 2024. The aim is to enter into a strategic partnership for the long-term growth of Encavis. The family-owned company Viessmann GmbH & Co. KG (“Viessmann”) will participate as a shareholder in a consortium led by KKR, as will the investor group led by ABACON, which will continue to invest in Encavis.

“This new constellation of experienced partners and our great teams of employees bring together know-how and expertise in the infrastructure and energy sectors, raising Encavis’ enormous potential in the Renewable Energy market to a new level,” said Mario Schirru, CIO/COO of Encavis.

The partnership aims to strengthen Encavis’ market position as a leading onshore wind and solar platform with a diversified pan-European portfolio and attractive growth opportunities. In addition, the new partnership is committed to accelerate growth in all segments of the Encavis Group.

Dr Christoph Husmann, Chairman of the Management Board and CFO of Encavis, adds: “We now aim to connect 7 GW of generation capacity to the grid by the end of 2027, which is above the current target of 5.8 GW, and continue to grow thereafter. This will enable us to accelerate growth with significant financial support, strengthen the project pipeline, increase capacities and promote expansion into new markets.”

The Annual General Meeting (AGM) of the Company is scheduled for 5^th June 2024 in Hamburg again in the form of a fully physical event.

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 around 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 1.2 GW of capacity under construction, of which around 830 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-).

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: joerg.peters@encavis.com
http://www.encavis.com