Encavis Q1 2024 Slump: FY Outlook Remains Strong

May 6, 2024 02:19 PM ET
  • Despite a drop in key performance indicators, Encavis AG remains confident in its financial outlook for 2024, with plans for growth in solar and wind operations.
Encavis Q1 2024 Slump: FY Outlook Remains Strong

German wind and solar farm operator Encavis AG reported a significant drop in key performance indicators for the first quarter of 2024 compared to the same period last year. Despite this, the company maintained confidence in its financial outlook for the full year. Net revenues totaled around EUR 86.6 million, a decrease of more than 12% from the first quarter of 2023, attributed to lower electricity prices and unfavorable weather conditions.

Adjusted EBITDA fell by over 24% year-on-year to around EUR 48.5 million, while adjusted EBIT plunged by more than 48% to around EUR 18.2 million. Encavis expects sales growth in its Italian solar operations, expanded wind capacity in Germany, and increased sales at Encavis Asset Management to offset the decline in electricity prices and achieve a slight increase in operating revenue and EBITDA for the year.

The company's CFO, Christoph Husmann, noted that the fluctuation in key figures in the first quarter is not unusual for a company like Encavis, which is heavily reliant on solar capacity. Despite the challenges, Encavis remains optimistic about its prospects for the year ahead, with total operating revenue expected to exceed EUR 460 million and operating EBITDA slightly above EUR 300 million.

Is Encavis AG's confidence in financial outlook for 2024 justified despite Q1 performance?

  • Encavis AG's confidence in its financial outlook for 2024 is justified despite the drop in key performance indicators for the first quarter.
  • The company attributes the decrease in net revenues to lower electricity prices and unfavorable weather conditions, which are factors that can fluctuate throughout the year.
  • Encavis expects sales growth in its Italian solar operations, expanded wind capacity in Germany, and increased sales at Encavis Asset Management to offset the decline in electricity prices and achieve a slight increase in operating revenue and EBITDA for the year.
  • The company's CFO, Christoph Husmann, mentioned that the fluctuation in key figures in the first quarter is not unusual for a company heavily reliant on solar capacity.
  • Despite the challenges, Encavis remains optimistic about its prospects for the year ahead, with total operating revenue expected to exceed EUR 460 million and operating EBITDA slightly above EUR 300 million.
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