Encavis AG forgoes dividend to fuel 2027 growth plan

• Encavis AG sacrifices dividends for 2023 to fuel expansion plans and triple power generation capacity by 2027. Shareholders approve new compensation system for management board.

Encavis AG, a German wind and solar farm operator, has decided to forgo its dividend allocation for 2023 in order to support its future expansion plans. The company's shareholders voted in favor of this decision at its annual general meeting, along with approving a revised compensation system for management board members.

The retained earnings will be used to back Encavis' Accelerated Growth Strategy 2027, which aims to triple its contracted power generation capacity to 8 GW and achieve revenues of EUR 800 million by then. In 2023, the company generated revenues of EUR 449.1 million and operating EBITDA of EUR 319.2 million, highlighting its growth potential in the renewable energy sector.

How will Encavis AG's decision to forgo dividends impact its growth strategy?

• By forgoing dividends, Encavis AG will have more capital available to invest in its expansion plans, allowing it to accelerate its growth strategy and achieve its targets more quickly.
• The decision to retain earnings for future growth shows that Encavis AG is prioritizing long-term sustainability and development over short-term gains for shareholders.
• With a focus on tripling its contracted power generation capacity and increasing revenues significantly by 2027, Encavis AG's decision to forgo dividends demonstrates its commitment to achieving ambitious growth targets in the renewable energy sector.
• The revised compensation system for management board members indicates that the company is aligning executive incentives with the goal of driving growth and maximizing shareholder value through strategic investments and expansion initiatives.