European Energy raises earnings forecast after ‘solid’ year of growth

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
European Energy's 103MW solar farm in southern Italy, which was completed in July. The company said its solar and wind portfolio will exceed 1GW by the end of 2020 Image: European Energy

Renewables developer European Energy has upgraded its results forecast for 2020, setting its predicted EBITDA to €60 million (US$72.4 million).

Chief executive Knud Erik Andersen said the company reported “solid” earnings last year despite supply chain disruption and project delays plaguing the solar industry throughout 2020’s global COVID-19 lockdown, and expected European Energy to “grow considerably in 2021”, raising its EBITDA forecast from the original €52-€58 million (US$62.7-$69.94 million) predicted last year. It has also forecasted pre-tax profits of €37 million ($44.6 million), in line with expectations set out at the start of 2020.

European Energy said it expects to pass the 1GW capacity mark for its solar and wind project portfolio this year, 750MW of which will connect to the grid, and earn pre-tax profits of €50 million (US$60.3 million) by the close of 2021. A spokesperson for the group told PV Tech European Energy plans to construct more than 500MW of solar energy this year.

Anderson said in April that the developer struggled with “minor interruptions at construction sites in some markets” at the start of the pandemic, but maintained an earnings forecast around €10 million (US$12.6 million) above EBITDA made in 2019. Since then, the company’s electricity sales have rebounded amid a renewed confidence in the renewables sector. European Energy recorded revenue of €40.7 million (US$49.1 million) by the third quarter of 2020, alongside profit before tax of €3.2 million (US$3.9 million) in the third quarter.

The company benefitted from a 73% rise in electricity sales in the first nine months of 2020 compared with the previous year, while electricity sale revenues from solar assets increased “more than tenfold compared to the same period in 2019” the company said in October. Its annual report is due to be released on 28 February.

European Energy completed a 103MW solar farm in southern Italy in June 2020, lauding it as the country’s largest to date, having already secured a 12-year power purchase agreement (PPA) with Swiss utility Axpo for 300MW of future projects in the country. Andersen said last summer that the company, which secured €96.5 million (US$113.59 million) in funding for the 103MW solar park from French financial firm Naxis, will invest roughly €800 million (US$964.7 million) over the next 5 years to develop renewable energy projects in Italy.

European Energy has also said it will build a 300MW solar farm in Aabenraa, Denmark, this year, connecting it to the grid by the end of 2021, and has teamed up with North Yorkshire’s Norstar to build 200MW of projects in the UK across 12 solar farms in Yorkshire, the North East and Lincolnshire

Read Next

May 7, 2021
Danish utility giant Ørsted has completed its first utility-scale solar-plus-storage facility in the US.
PV Tech Premium
May 3, 2021
Companies are purchasing solar, wind, and other forms of renewable energy more than ever before. The power purchase agreement (PPA) market in Europe has grown to a cumulative capacity of over 12GW, with a record 4GW signed in 2020. Corporate climate commitments are opening doors for investment in renewable energy, and continued price declines are convincing companies to sign new contracts. Is the European market ready to fulfil its potential? By Dr. Mercè Labordena, senior policy advisor at SolarPower Europe, and Milena Koot, communications advisor at SolarPower Europe
April 28, 2021
FTC Solar has downgraded the pricing of its initial public offering (IPO) and will list at a price of US$13 per share, rather than initial target range of US$18 – 20.
April 23, 2021
Despite dozens of net-zero targets being announced and deployment of renewable energy ramping up globally over the past year, just 10% of countries have shown “steady and consistent” progress in their energy transition plans, according to a new report from the World Economic Forum (WEF).
April 22, 2021
Danish solar company Better Energy is expecting to improve its financial performance this year thanks in part to its transition from a project developer to an independent power producer (IPP).
April 22, 2021
A round-up of the latest news from the US solar sector, including distributed solar specialist SunPower's return to large-scale power systems, panel maker Maxeon's share offering, and developer National Grid Renewables' PPA with Hershey, Home Depot and NRG.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
May 11, 2021
Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021