Encavis brushes off COVID-19 concerns with strong 2020 financial outlook

Facebook
Twitter
LinkedIn
Reddit
Email
in January, UK-based firm Solarcentury and Encavis started construction on the US$250.5 million Talayuela Solar Project in Spain. Credit: SolarCentury

German solar and wind firm Encavis AG has maintained its 2020 financial targets despite the COVID-19 outbreak.

Having achieved record earnings in 2019, beating its so-called “summer of the century” in 2018, Encavis said it expects earnings to stay strong this year even if there are delays with the construction of two major solar PV plants in Spain.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

In a release, the firm stated: “Even in these difficult times, we feel well-positioned to achieve our long-term goals. For the current financial year, we are expecting moderate growth in revenues and earnings, which is in line with our original forecast before the Corona crisis.”

2019 weather boon

Last year, expansion of the firm’s generation portfolio in Denmark and the Netherlands, growth of Encavis Asset Management and more favourable weather conditions helped Encavis obtain a 10% increase in revenue of €25 million. This was €10.5 million higher than originally forecasted and €3.8 million higher than in 2018.

2019 revenue growth was driven by around €13.6 million from solar parks, €5.3 million from wind, and €7.5 million from the firm’s asset management business.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by around 16% to €217.6 million compared to the previous year, with the EBITDA margin rising to 79.5%, up from 75% in the previous year.

The renewable energy parks each achieved operating EBITDA margins of 82% (wind) and 84% (solar). Increases in EBITDA were also boosted by the sale of minority interests in four wind parks as well a decline in other operating expenses, mainly due to the application of International Financial Reporting Standard (IFRS) 16.

Operating cash flow increased by €15 million (9%) to €189.3 million – again meeting guidance.

2020 Spanish solar giants

In 2020, Encavis will chiefly focus on two major PV projects in Spain that are due to be connected to the grid in the second half of the year.

For example, in January, UK-based firm Solarcentury and Encavis started construction on the US$250.5 million Talayuela Solar Project, a 300MW PV project being developed in Cáceres, Extremadura, Spain. Once completed, it will be one of the largest subsidy-free solar developments in Spain to date.

The German company said that even if there was a delay with the construction of these projects, this would have limited impact, with a negative effect on earnings per share for 2020 of €0.01.

The Management Board also expects a moderate increase in revenues to more than €280 million for the 2020 financial year. The firm plans to achieve operating earnings (EBITDA) of more than €220 million and operating EBIT of around €130 million, with operating cash flow expected to exceed €200 million.

Thus, despite all the expected headwinds from COVID-19 globally, the firm said it will continue to follow its Fast Forward 2025 strategy unencumbered. The company is, however, postponing the Annual General Meeting for the safety of shareholders and employees.

PV Tech has set up a tracker to map out how the COVID-19 pandemic is disrupting solar supply chains worldwide. You can read the latest updates here.

The prospects and challenges of solar's new era in Europe will take centre stage at Large Scale Solar Europe 2020 (Lisbon, on 30 June-1 July 2020).

2 December 2025
Málaga, Spain
Understanding PV module supply to the European market in 2026. PV ModuleTech Europe 2025 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.

Read Next

June 9, 2025
Sonnedix has signed a power purchase agreement (PPA) with Renfe to supply 420GWh of renewable energy annually for its commercial operations.
June 6, 2025
Eternal Sun has acquired German solar simulator provider Wavelabs, which has resulted in the formation of a new subsidy, Wavelabs Eternal Sun.
June 4, 2025
Independent power producer (IPP) Enlight Renewable Energy is expanding its Gecama Wind Project in Castilla La Mancha, Spain, by integrating solar PV and battery energy storage systems.
May 30, 2025
Spanish independent power producer (IPP) has unveiled two new solar-plus-storage projects, one in Central Chile and the other in Spain.
May 28, 2025
Renewables developer Solaria has reached an agreement in principle with Spanish bank Banco Sabadell to finance a 175MW solar PV plant in Spain.
May 23, 2025
TotalEnergies has commissioned its largest solar portfolio in Europe, a collection of five assets in Spain with a combined capacity of 263MW.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
September 16, 2025
Athens, Greece