Shares in Encavis AG fell Wednesday after the company forecast lower revenues and adjusted earnings for this year and didn’t declare a dividend, but reported a higher net profit for 2022.
At 1112 GMT, Encavis shares were down 6.4% at EUR15.02.
The German wind and solar energy operator’s net profit for 2022 rose to EUR78.5 million from EUR75.3 million in 2021, according to its annual report. Revenue rose to EUR487.3 million from EUR332.7 million.
However, the company said it expects revenue to fall in 2023, with a forecast of about EUR460 million, in part because of lower energy prices.
Encavis’s operating earnings before interest, taxes, depreciation and amortization were EUR350 million last year, a 37% rise compared with the year before amid added capacity, better weather and high electricity prices, the company said. Operating earnings before interest and taxes rose to EUR198.3 million from EUR149.1 million. Both results outperformed guidance, Encavis said.
However, both operating Ebitda and operating EBIT are expected to fall this year to around EUR310 million and around EUR185 million, respectively, Encavis said.
Encavis won’t pay a dividend for 2022, so that it can use the money to expand capacity, it said. The company added that by 2027 it will have 5.8 gigawatts of energy capacity on the grid, more than 2.5 times its current capabilities.
“The growth of the past years is to be accelerated significantly,” Encavis said.