ENCAVIS AG Reports Lower Q1 Performance But Confirms 2024 Guidance

Hamburg-based Encavis AG, an MDAX-listed operator of wind and solar parks, announced preliminary financial results for Q1 2024, showing a significant drop in key performance indicators compared to the same period last year. The company reported a decrease in net revenue by over 12% to approximately EUR 86.6 million and a more than 24% reduction in adjusted EBITDA to about EUR 48.5 million. These figures come after exceptional earnings reported in Q1 2023 due to favorable weather and high electricity prices.

Despite the downturn, Encavis's Management Board remains confident in achieving their annual targets, stating that the company’s revenue and profitability are meeting planned levels, considering the reduced electricity prices and full hedging via subsidy tariffs and Power Purchase Agreements (PPAs). The company also highlighted that such financial fluctuation is typical in the first quarter due to the seasonal nature of solar energy production paired with variable meteorological conditions.

The company reassured investors of its financial health by confirming FY 2024 guidance, initially provided with the 2023 financial statements, forecasting a moderate increase in key figures supported by strategic growth in wind capacity and sales through its asset management sector.