Successful project business delivers another record result in the 2023 financial year
- Raised earnings forecast met
- Sales and earnings significantly increased
- Dividend proposal elevated to 1.20 euros
- 2023 to 2028 growth strategy confirmed
Bremen, 28 March 2024 – Energiekontor AG (“Energiekontor”), a leading German project developer and operator of wind and solar parks listed in the General Standard, closed the 2023 financial year successfully. Figures stood at the upper end of the forecast range, which was raised in December 2023.
Raised forecast for 2023 met – dividend proposal increased
In a challenging market environment, Energiekontor was able to increase its consolidated revenues by almost a third to around 241.8 million euros in the 2023 financial year (2022: 187.6 million euros). With growth of 7.7 percent, total income amounted to 275.4 million euros (2022: 255.7 million euros). In particular, the extraordinarily successful project business and the overall reduction in operating expenses led to a positive increase in Group net profit (EBIT) of 43.1 percent to 114.4 million euros (2022: 80.0 million euros), which corresponds to an EBIT margin of 47.3 percent (2022: 42.6 percent). Adjusted for a slight decrease in the interest result, Energiekontor generated Group net profit before taxes (EBT) of 95.5 million euros (2022: 62.9 million euros) and an EBT margin of 39.5 percent (2022: 33.5 percent).
The year-on-year increase in Group EBT by more than 50 percent meets the growth forecast for Group EBT in the 2023 financial year, which was raised in mid-December 2023 to an anticipated rise of between 30 and 60 percent to between 80 and 100 million euros. At 95.5 million euros, Group EBT came in at the upper end of the range. Energiekontor had previously expected an increase in Group EBT of 10 to 20 percent.
Favourable tax conditions for the projects sold abroad were the main factor in the significantly lower Group tax rate of 12.7 percent in the 2023 financial year (2022: 29.2 percent), which resulted in a disproportionately high increase in Group net profit for the year of 87.1 percent to 83.3 million euros (2022: 44.5 million euros). Undiluted earnings per share therefore increased significantly and amounted to 5.97 euros (2022: 3.18 euros).
The shareholders of Energiekontor AG are also set to benefit from the company’s successful performance in the 2023 financial year. The Management Board and Supervisory Board will propose to the Annual General Meeting on 29 May 2024 in Ritterhude that around 30 percent of Energiekontor AG’s balance sheet profits be distributed as a dividend, as in the previous year. The proposed distribution corresponds to a dividend of 1.20 euros per share (2022: 1.00 euro).
Project development and sales segment with particularly strong growth
The Project development and sales segment played a major part in the outstanding performance of Group EBT in the 2023 financial year. External revenues increased by around half to 157.8 million euros (2022: 104.8 million euros). Segment EBT doubled to 64.1 million euros (2022: 28.4 million euros), exceeding the previous year’s total Group EBT (2022: 62.9 million euros). The sale of the Scottish wind park project Garbet in mid-December 2023 was a particular factor in the extraordinarily high segment result, with a portion of the earnings contributions planned for the 2024 financial year already being received in the 2023 financial year.
In the 2023 financial year, Energiekontor sold a total of five projects with a total generation capacity of around 162 megawatts (2022: 96 megawatts). A total of nine projects with a total generation capacity of around 316 megawatts were under construction or had purchase agreements or concluded financing arrangements in place as at the reporting date (previous year’s reporting date: 165 megawatts).
In addition, six wind parks and one solar park with a total generation capacity of more than 76 megawatts (2022: 94 megawatts) were put into operation. With the exception of one wind park in the company’s own portfolio, all commissioning activities related to projects sold in Germany. In addition, a large number of building permits was granted for a total generation capacity of around 748 megawatts (2022: 750 megawatts). Almost half of this volume relates to the UK project business. The other half relates to German projects, including four solar parks with around 200 megawatt peak in total generation capacity that are intended for the Group’s own portfolio.
Solid development in the power generation segment
External revenues and earnings (EBT) in the power generation in Group-owned wind and solar parks segment were more or less on a par with the previous year in the 2023 financial year, with revenues increasing slightly to 79.0 million euros (2022: 76.7 million euros) and segment EBT decreasing slightly by 7.3 percent to 27.8 million euros (2022: 30.0 million euros).
The total generation capacity of the Group’s own portfolio of wind and solar parks increased again slightly in the 2023 financial year to around 389 megawatts (2022: around 384 megawatts). Following the commissioning of the Seukendorf and Letschin solar parks currently under construction with a generation capacity of 11.6 and 60.0 megawatts peak respectively, which is planned for the end of 2024 and the first quarter of 2025, the total generation capacity of the parks in the Group's own portfolio will increase to around 460 megawatts. In addition, more than 300 megawatts are to reach financial close in 2024, most of which are also intended for the company's own portfolio in order to systematically expand and strengthen the segment.
The Jacobsdorf wind park in Brandenburg was not in operation all year round. The wind turbine towers had to be reconstructed after expert confirmation of structural defects resulted in them being deemed not fully safe in 2021. The necessary structural measures have now been completed, meaning that the wind park was fully operational again in February 2024.
In addition, the Alfstedt wind park in Lower Saxony has not been in operation since mid-October 2023 due to another broken rotor blade, which resulted in the entire wind park being shut down. An independent arbitration report, which has not yet been finalised, is expected to shed light on the cause of the damage. Energiekontor and the manufacturer are working on a transitional operating concept for the remaining turbines for the assessment period. The concept requires official approval, which is not expected before May 2024.
Despite the two aforementioned shutdowns, gross electricity production at the Group’s own parks increased significantly in the 2023 financial year, reaching around 635 gigawatt-hours (2022: around 550 gigawatt-hours). This can be attributed primarily to ongoing operational measures to increase production. Lower electricity prices on the spot market, which Energiekontor countered with direct marketing and private power purchase agreements (PPAs) to secure adequate price levels, had an offsetting effect.
Operation development, innovation and others segment with upside potential
The operation development, innovation and others segment saw its sales and earnings fall below the previous year’s level. External revenues declined by 17.8 percent to 5.0 million euros (2022: 6.1 million euros). Segment EBT decreased to 3.6 million euros (2022: 4.5 million euros). The segment result decreased primarily as a result of the factors described above influencing electricity income, which forms the basis for operating income.
Project pipeline significantly expanded once again
Despite the challenging conditions, Energiekontor succeeded in expanding its attractive and valuable project pipeline by more than 1 gigawatt (excluding US project rights) in the 2023 financial year compared to the previous year’s reporting date. The project pipeline totalled around 10.7 gigawatts (excluding US project rights) (previous year’s reporting date: 9.6 gigawatts). More than 2.3 gigawatts of the project pipeline is already at an advanced stage of project development and therefore form the basis for short- and medium-term growth. Technological diversification was also expanded as planned. More than a third of all projects now involve solar power.
2024 financial year: an important building block for the 2023 to 2028 growth strategy
In combination with long lead times from turbine and component manufacturers, the limited availability of wind turbines and other major components is causing a noticeable increase in realisation times in project business. Against this backdrop, Energiekontor expects most of the projects currently under construction and the projects for which financial close is planned in 2024 to 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 2024 financial year and will largely be postponed until 2025 and 2026.
In the 2024 financial year, the company intends to generate a large proportion of Group EBT primarily from several project sales in the United Kingdom, as planned. However, the local grid operator recently announced possible delays in the expansion of the supra-regional grids, which is why potential shifts in results cannot be ruled out here either.
In view of the wind park project in the United Kingdom that was successfully sold in December 2023 and the market environment described above, Group EBT for the 2024 financial year is expected to be significantly lower than the Group EBT for 2023. However, 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, which aims for earnings (EBT) of around 120 million euros in the 2028 financial year.
“With our resilient business model and our cost discipline, we can make excellent use of possible transitional phases such as the current financial year to continue plotting our course to achieve our five-year strategy,” says Peter Szabo, CEO of Energiekontor AG. “Our project pipeline is full to bursting, with over two gigawatts of these projects already in the late-stage project realisation phases. Two German solar parks, which are to be included in the Group’s own portfolio, are already under construction. Financial closing is planned this year for projects totalling several hundred megawatts. These are also intended for our own portfolio and also include two solar park projects in France, for which we have fortunately received the first building permits. In addition to our important project development and sales segment, we will position the other two segments even more broadly so as to create a stable foundation for further growth.”
The Annual Report 2023 contains further information on Energiekontor’s business performance, the economic and market environment and the outlook. It is available for download at https://www.energiekontor.de/en/investor-relations/financial-reports.html.
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
Email: ir@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
