Encavis AG has revised its 2024 financial outlook following a weaker-than-expected performance in the first nine months of the year. The German wind and solar park operator cited project commissioning delays, unfavorable weather conditions, and lower electricity prices as key factors impacting its results. Additionally, the company noted the adverse effects of the challenging interest rate environment on its asset management business.
The company now expects revenues to reach EUR 425 million (USD 455.6 million) for 2024, a reduction from the previous estimate of over EUR 460 million. EBITDA is projected to range between EUR 260 million and EUR 270 million, down from the earlier forecast of exceeding EUR 300 million. EBIT is now expected to be between EUR 135 million and EUR 145 million, compared to an original forecast of over EUR 175 million.
Encavis also revised its operating cash flow projection to between EUR 225 million and EUR 235 million, down from an earlier expectation of over EUR 260 million.
In the first nine months of 2024, Encavis reported adjusted EBITDA of EUR 201.3 million, a decline from EUR 246.1 million in the same period of 2023. The company's adjusted operating EBIT contracted by 31%, and net revenues fell by 10% year-on-year to EUR 321.6 million. This was primarily due to less favorable wind and solar conditions in Southern Europe, along with plant shutdowns caused by negative electricity prices in Spain and Finland.
Despite these challenges, Encavis increased its power output to 2,677 GWh, up slightly from 2,673 GWh in the same period last year.
