Encavis achieves 36 percent increase in sales despite electricity price brake
Post date: 17/02/2023 - 00:45
Hamburg-based wind and solar power plant operator Encavis AG has reported a 36 percent increase in revenue and a 33 percent improvement in operating earnings before interest, taxes, depreciation and amortization (operating EBITDA) for 2022. Electricity production increased only about half as much, by nearly 14 percent, from 2.75 to 3.13 terawatt hours.
Sales generated by Encavis with its plants operating in twelve European countries amounted to € 480 million ($ 514 million). This includes »around € 25 million that will be skimmed off because of the Europe-wide implemented price cap systems.« Nevertheless, the € 455 million achieved after deducting this skimming amount already exceed the € 440 million target defined by Encavis in its »Fast Forward 2025« growth strategy. EBITDA is also above the self-imposed target. According to the company, however, the high profitability has little to do with the rapid rise in electricity trading prices: Because a very high proportion of sales are at pre-fixed prices, »Encavis benefited only to a limited extent from the high peaks on the electricity market.« However, the effect was »nevertheless clearly visible.«