Performance on track in the first half of 2024
Bremen, 12 August 2024 – Energiekontor AG (“Energiekontor”), a Bremen-based and leading German project developer and operator of wind and solar parks listed in the General Standard, has expanded and further developed its project pipeline as planned in the first half of 2024. Significant contributions to earnings are expected to materialise going forward, especially in the 2025 and 2026 financial years. With the publication of its half-year figures for 2024, Energiekontor confirms both its guidance for the 2024 financial year and its growth strategy for 2023 to 2028.
In a challenging market environment, Energiekontor was able to increase its consolidated revenues by almost a third to around 78.0 million euros in the first half of 2024 (H1 2023: 65.2 million euros). Mainly as a result of lower changes in inventories, total income amounted to 95.7 million euros (H1 2023: 110.5 million euros). Other operating income decreased compared to the previous year’s reporting date. Operating expenses fell slightly overall. Consequently, the operating result (EBIT) amounted to 23.5 million euros (H1 2023: 36.7 million euros). Adjusted for a significantly better interest result, Energiekontor generated Group net profit before taxes (EBT) of 16.7 million euros (H1 2023: 27.8 million euros). The Group tax rate was 29.5 percent (H1 2023: 24.7 percent), resulting in Group net profit after taxes of 11.8 million euros (H1 2023: 21.0 million euros). Undiluted earnings per share amounted to 0.85 euros (H1 2023: 1.50 euros).
Project development and sales segment shows catch-up potential for the second half of 2024
As expected, no projects were sold in the first half of 2024, so the project development and sales segment was not yet able to make a significant contribution to the trend of the Group net profit. Although external sales revenues increased noticeably to 33.6 million euros in the first half of 2024 (H1 2023: 19.8 million euros), lower changes in inventories of finished and unfinished products and lower other operating income initially led to a segment EBT of 0.8 million euros (H1 2023: 9.3 million euros). After the reporting date, Energiekontor sold a wind park repowering project in Lower Saxony and the project rights for a wind park project in North Rhine-Westphalia.
In the first half of 2024, Energiekontor commissioned three wind parks with a total generating capacity of around 79 megawatts (2023 financial year: 76 megawatts). These wind parks comprised one wind park from Energiekontor’s own portfolio, one German project that was sold and one Scottish project. Six wind parks and two solar parks with a total generation capacity of around 288 megawatts were under construction or have reached financial close in Germany and in the United Kingdom as at the reporting date (31/12/2023: 316 megawatts). Of these, two wind parks and two solar parks with a total of more than 100 megawatts are to be incorporated into Energiekontor’s own park portfolio upon commissioning.
In addition, as at the reporting date, a total of 31 building permits was granted for a total generation capacity of almost one gigawatt (31/12/2023: 748 megawatts). Just over half of this volume relates to the UK project business. The other half relates to projects in Germany and now, for the first time, two approved solar projects in France. Energiekontor also received three additional building permits for wind projects in the United Kingdom and Germany after the reporting date.
Power generation segment makes a significant contribution to Group result
The external sales revenues of the power generation in group-owned wind and solar parks segment were roughly on a par with the previous year in the first half of 2024 and amounted to 41.8 million euros (H1 2023: 42.5 million euros). By contrast, the segment EBT decreased to 14.3 million euros (H1 2023: 16.5 million euros).
The total generation capacity of the Group's own portfolio of wind and solar parks amounted to around 384 megawatts as at 30 June 2024. Gross electricity production at the Group’s own parks totalled around 320 gigawatt hours in the first half of 2024 (H1 2023: 337 gigawatt hours).
The Group’s own Jacobsdorf wind park, which was not in operation in the 2023 financial year, was fully recommissioned in mid-February 2024. The Alfstedt wind park, which has been out of operation since mid-October 2023 due to repeated rotor blade damage, is still not in operation. Energiekontor and manufacturer General Electric are working on the recommissioning of the wind turbines that have meanwhile been partially released until the expert report commissioned to determine the cause of the damage is finalised, which is expected in autumn 2024.
Energiekontor also plans to transfer the two solar parks currently under construction in Seukendorf and Letschin, with a total generation capacity of approximately 72 megawatt peak, to its own portfolio. In addition, the two repowering wind parks of Oederquart and Würselen have been under construction since April 2024 and are expected to contribute a total of around 35 megawatts to the segment’s earnings in future. The commissioning of the aforementioned parks will increase the total generation capacity of the Group’s own portfolio to almost 500 megawatts. In addition, further projects are expected to reach financial close and be ready for construction in the current financial year, most of which are also intended for Energiekontor’s own portfolio.
Solid development in the operation development, innovation and others segment
The operation development, innovation and others segment saw its sales and earnings on previous year’s level or fall below the previous year’s level. External sales amounted to 2.7 million euros in the first half of 2024 (H1 2023: 2.8 million euros). The EBT for the segment fell to 1.6 million euros (H1 2023: 2.0 million euros). In particular, the segment result decreased as a result of the factors described above influencing electricity income, which forms the basis for operating income.
Successful expansion of the project pipeline
In spite of the challenging operating environment, in the first half of 2024 Energiekontor succeeded in further extending the historically high level of its attractive and valuable project pipeline. Overall, the total generation capacity of all projects (excluding the US projects) increased to around 11.0 gigawatts (31/12/2023: 10.7 gigawatts). Including US project rights, the project pipeline totalled more than 12.0 gigawatts (31/12/2023: around 11.7 gigawatts).
Of particular note is the steady increase in projects that are already in a mature project development phase (three to five), in which around 90 percent of the value added of a project is realised. The total generation capacity of projects in these advanced development phases further increased to around 2.5 gigawatts. Energiekontor was also able to further broaden its technological diversification as planned. At present, solar projects account for roughly one third of the entire project pipeline.
Progress in the 2024 financial year is key to future growth
Against the backdrop of the continued limited availability of wind turbines and other large components, compounded by long delivery times, Energiekontor continues to assume that most of the projects currently under construction and the projects for which financial close is planned for 2024 will only be commissioned in the following two years. As a result, the earnings potential from these projects is not expected to be fully realised in the financial year and will largely be postponed until 2025 and 2026. In addition, we are also up against the known possible delays in the expansion of the supra-regional grids in the United Kingdom, announced by the local grid operator in the first quarter of 2024, which is why potential shifts in results cannot be ruled out here either. Despite the delays caused by external factors, sales processes are currently underway for individual UK projects and should be finalised before the end of the year in order to generate an EBT contribution for 2024 in the United Kingdom from the project sales.
In view of these general conditions, Energiekontor continues to assume that Group EBT for the 2024 financial year will probably be markedly lower than Group EBT for 2023 and confirms its EBT guidance for the Group in the range of 30 to 70 million euros. Any shifts in earnings will materialise in the 2025 and 2026 financial years. In those two financial years, they will lead to an increase in EBT that exceeds the linear annual growth trajectory described in the 2023 to 2028 growth strategy, through which Energiekontor is aiming for earnings of around 120 million euros in the 2028 financial year.
“The 2024 financial year has been challenging so far, and will remain so. It has been impacted by a number of geopolitical crises, coupled with a highly challenging market environment,” says Peter Szabo, CEO of Energiekontor AG. “In light of this, it is more important than ever that we direct our attention towards our sustainable business model and our strength as an experienced and long-established pioneer in the expansion of renewable energies. Due to the prolonged project realisation times and the resulting shift in earnings, we are in a period of transition with the current financial year, meaning that the 2024 financial year will not immediately be able to build on the above-average success of the previous year. Meanwhile, in the first half of 2024 we have successfully taken important steps for the coming years, with the aim of achieving our five-year strategy.”
The financial report for the first half of 2024 can be viewed at https://www.energiekontor.de/en/investor-relations/financial-reports.html, as can the annual report for the 2023 financial year, which contains additional information about the 2023 to 2028 growth strategy.
About Energiekontor AG
For over 30 years, Energiekontor has stood for a solid business policy and extensive experience in renewable energies. Founded in Bremerhaven, Germany, in 1990, the company is among the pioneers in its industry and is now one of Germany’s leading project developers. Its core business ranges from the planning and construction to the operational management of wind and solar parks in Germany and abroad. In addition, Energiekontor operates around 40 wind and solar parks with a nominal power of around 390 megawatts in its own portfolio. Energiekontor also plays a pioneering role in economic terms and aims to realise the first wind and solar parks in all target markets at market prices as quickly as possible, independently of state subsidies.
Along with its headquarters in Bremen, Germany, Energiekontor has offices in Bremerhaven, Hagen im Bremischen, Aachen, Augsburg, Berlin, Berlin-Spandau, Potsdam and Hildesheim. The company also has branch offices in England, Scotland, Portugal, France and the United States.
Since being established, Energiekontor has a proud track record of realising more than 160 wind and solar park projects with a total generation capacity of around 1.4 gigawatts. This corresponds to an investment volume of more than 2.0 billion euros (as at 31 December 2023).
Energiekontor AG (WKN 531350/ISIN DE0005313506/General Standard) is listed in the SDAX and the TecDAX of the German Stock Exchange in Frankfurt and can be traded on all German stock markets.
Contact
Julia Pschribülla
Head of Investor & Public Relations
Phone: +49 (0)421-3304-126
Kathrin Mateoschus
Investor & Public Relations Manager
Tel: +49 (0)421-3304-297
Email for investor relations matters: ir@energiekontor.com
Email for press matters: pr@energiekontor.com
Energiekontor AG
Mary-Somerville-Strasse 5
28359 Bremen
Germany
Phone: +49 (0)421-3304-0
Fax: +49 (0)421-3304-444
Email: info@energiekontor.de
Web: www.energiekontor.de/en/index.html
