DGAP-News: ENCAVIS AG: Q1 2022 results are significantly above previous year

Corporate News

Q1 2022 results of Encavis AG are significantly above previous year


Hamburg, May 12, 2022 – SDAX-listed and Hamburg-based wind and solar park operator Encavis AG (Prime Standard, ISIN: DE0006095003, ticker symbol: ECV) benefits in the first quarter 2022 of three main drivers for revenue and earnings figures:

1. Increase in production of Renewable Electricity based on growth of own generation capacity to 2.0 gigawatts (GW)

2. Significantly better weather conditions in Q1 2022 as of the comparable quarter the year before

3. Ongoing high electricity prices high above the level of the comparable quarter the year before

The Management Board confirms the guidance for the full year 2022e, given in March this year, as well as the growth strategy >> Fast Forward 2025.


The Group increased electricity production from Renewable Energy by one third (+33%) to around 710 gigawatt hours (GWh / previous year: 536 GWh) during the first three months of fiscal year 2022. Revenue grew by 53% to EUR 90.4 million (previous year: EUR 58.9 million). This strong growth of more than EUR 30 million has to be split half and half to the Group’s portfolio of wind farms and solar parks. Revenue of the solar park portfolio in Q1/2022 exceeded prevous year’s figure by around EUR 15.3 million. An increase of around 42%, mainly driven by the 40% higher electricity production of the solar parks. Revenue of the wind farm portfolio also grew by around EUR 14.7 million compared to previous year’s figure. A significant increase by around 72%, based on the 25% increased production volume of electricity and on the significantly higher electricity prices in Q1 2022 compared to Q1 2021. Main contributors were German and Danish wind farms.

The segment Asset Management increased revenue in Q1 2022 by around EUR 1.7 million (+85%) to EUR 3.7 million compared to previous year and achieved therefore a positive operating EBIT in the amount of EUR 0.9 million (previous year: EUR -0.5 million).

Operating earnings before interest, taxes, depreciation and amortisation (operating EBITDA) increased significantly by 64% to EUR 64.4 million (previous year: EUR 39.9 million) in the first three months of the 2021 financial year. Resulting in a jump of operating earnings before interest and taxes (operating EBIT) of 168% to EUR 34.8 million (previous year: EUR 13.0 million) after three months. This disproportionate earnings increase results from the normalisation of the growth of generation capacity versus revenue growth. The newly added generation capacities of the past year fully contributed to the revenue of Q1 2022 for the first time and therefore reversed the burdening effect of depreciations of new assets that yet not contribute to revenue.

This ultimately resulted in significantly improved operating earnings per share (EPS) of EUR 0.08 in the first quarter of 2022, following a loss of EUR 0.05 per share in the same quarter of 2021 – a sharp increase of EUR 0.13 per share.


The strong increase of cash flow from operating activities by around 62% to EUR 64.7 million (previous year: EUR 39.9 million), similarly to the operating EBITDA in the amount of EUR 64.4 million, follows the significantly increasing portion of revenue from long-term power purchase agreements (PPA) with commercial customers and industrial offtakers and therefore almost same day valuta revenue and cash flow.

„The fundamental revenue and earnings growth in the first quarter of this year fulfill the level of our planning regarding production volume and electricity prices. We benefitted as well from currently more favourable weather conditions, compared to the very bad weather conditions in Q1 2021. Main drivers of our growth is and remains the organic growth of our wind and solar park portfolio as planned, independent of seasonal and quarterly variations“, Dr Christoph Husmann, CFO of Encavis AG, explained the successful first quarter 2022.

The Management Board expects for the 2022 financial year, currently under way, an even stronger increase in revenue to more than EUR 380 million (+14 %). Operating EBITDA is expected to increase to more than EUR 285 million (+11 %) and operating EBIT to more than EUR 166 million (+11 %), bringing operating earnings per share up to EUR 0.51 (+6 %), calculated on the significantly higher number of shares outstanding of 160.5 million shares. The operating cash flow is expected to exceed EUR 260 million to surpass again the significantly above plan realised figure of the previous year.

The Annual General Meeting (AGM) will take place – as planned – on May 19, 2022. In order to protect the health of the shareholders and employees and to slow down the chain of infection, Encavis again make use of the extraordinary regulation of the German Government and therefore the AGM will take place as a virtual event without the physical participation of any shareholders. The Management Board and Supervisory Board will propose an increased dividend of EUR 0.30 per share (previous year EUR 0.28) to the Annual General Meeting. This will also be offered again as scrip dividend in shares or for cash distribution.

About ENCAVIS:

Encavis AG (Prime Standard; ISIN: DE0006095003; ticker symbol: ECV) is a producer of electricity from renewable energies listed on the SDAX of Deutsche Börse AG. As one of the leading independent power producers (IPP), ENCAVIS acquires and operates solar parks and (onshore) wind farms in eleven 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 3.2 gigawatts (GW), corresponding to an amount of avoided roughly 1.4 million tonnes of CO₂ per annum. Within the Encavis Group, Encavis Asset Management AG offers fund services to institutional investors.

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 "A" and ISS ESG with their "Prime" label.

Additional information can be found on www.encavis.com

Contact:
ENCAVIS AG

Jörg Peters

Head of Corporate Communications & IR

Tel.: + 49 40 37 85 62 242

E-Mail: [email protected]

http://www.encavis.com

Twitter: https://twitter.com/encavis