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Encavis (ECV) investor relations material

Encavis Q3 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2024 earnings summary14 Nov, 2024

Executive summary

  • Revenue and earnings declined significantly in the first nine months of 2024 due to adverse weather, lower electricity prices, and project delays, despite ongoing portfolio expansion and new project connections.

  • Major strategic developments included a framework agreement for 500 MW of solar projects in Germany, expansion in Spain, and a 114 MW solar park in Germany.

  • KKR-led consortium launched a successful public takeover offer, with 87.41% acceptance, expected to close by end of 2024.

  • MSCI upgraded Encavis' ESG rating to "AA" following improvements in HR management and CO2 reduction measures.

Financial highlights

  • Operating revenue for 9M 2024 was €322.2m, down 12% year-over-year; operating EBITDA fell 22% to €190.9m, and operating EBIT dropped 38% to €99.0m.

  • Consolidated operating earnings were €26.4m (margin 8%), compared to €88.6m (margin 24%) in the prior year.

  • Net cash flow from operating activities was €171.2m, down from €183.7m; cash flow from investing activities was -€320.4m, mainly for new solar and wind projects.

  • IFRS consolidated earnings for 9M 2024 were -€9.7m, compared to €58.9m in 2023; EPS was -€0.08 versus €0.34.

Outlook and guidance

  • 2024 revenue guidance lowered to €425m (-8% vs. original), EBITDA to €260–270m (-13% to -10%), EBIT to €135–145m (-23% to -17%), and operating cash flow to €225–235m (-13% to -10%).

  • Technical availability/performance of plants expected to remain above 95% for the year.

  • Guidance assumes no major legislative changes or significant weather deviations.

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Frequently asked questions

Encavis AG is an independent power producer that acquires, operates and develops solar parks and onshore wind farms.The Company offers investors the opportunity to participate in attractive yields from solar and onshore wind power production by acquiring projects in partnership with the company or by investing directly in the company’s own portfolio. With a sustainable business model, Encavis seeks to deliver attractive returns for its shareholders. The company is listed on the Frankfurt Stock Exchange as well as on the MDAX. Encavis Group employs more than 140 people across Germany and Denmark. The overall project pipeline comprises more than 6 GW of power generation capacity. Encavis AG is based in Hamburg, Germany.

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