European Energy lifts 2018 profits ahead of bright 2019

The Nojsomheds Odde wind farm in Denmark. Source: European Energy A/S

March 1 (Renewables Now) - Danish wind and solar developer European Energy A/S on Thursday said its 2018 results were “satisfactory,” with pre-tax profit of EUR 25.9 million (USD 29.4m), and added it is in line with its guidance.

The Copenhagen-based company last month changed its 2018 forecast, for the second time, guiding for pre-tax profit of between EUR 25.5 million and EUR 26 million for the 12-month period. The result in 2017 stood at 25.8 million.

In terms of revenues, however, European Energy recorded a drop to EUR 96.2 million from EUR 186.7 million a year before following a decision to eliminate the revenue and direct costs from the sale of three under-construction solar parks to an associated company of the group, a deal which it previously planned to classify as revenue.

The following table shows more details about the company’s performance.

Figures in EUR million Q4 2018 Q4 2017 2018 2017
Revenue 72.5 57.8 96.2 186.7
EBITDA 25.4 10.8 33.6 34.2
EBIT 24.4 10.3 31.1 32.5
Profit (loss) before tax 24.2 8.7 25.9 25.8
Group's share of profit for the period  22.4 7.1 22.5 21.2

During the past year, the company agreed to unload 180.8 MW of projects, the deals for 141.8 MW of which were finalised during the year. In the fourth quarter alone, it closed the sale of a 25.2-MW wind park in Denmark and eight solar plants totalling 70 MW, also in Denmark. Additionally, it divested from a 14-MW wind farm in Germany by selling its 20% stake.

At end-2018, European Energy’s share of operational assets was 244 MW, up from 109 MW in 2017, of which 164 MW wind and 79 MW solar. Its net electricity production rose to 327.5 GWh from 265.6 GWh, with electricity sales improving to EUR 19.8 million from EUR 10.1 million.

“We experienced rapid growth in our development pipeline of projects along with projects that are ready-to-build or in construction. The growth will be reflected in the number of projects and the size of the projects European Energy will deliver in the coming years,” commented CEO Knud Erik Andersen.

Looking ahead, the Danish company said it expects 2019 to be “another year with good results,” projecting pre-tax profit of EUR 30 million-35 million and earnings before interest, tax, depreciation and amortisation (EBITDA) ranging between EUR 40 million and EUR 45 million.

(EUR 1.0 = USD 1.136)

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