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ENCAVIS AG Reports Q1/2024 Financial Results with Confirmed Full Year Guidance

On May 14, 2024, Encavis AG, a leading operator of wind and solar farms, announced their Q1/2024 financial results, stating a decline in revenue and earnings compared to Q1/2023 but in accord with the company's plans. The results reflect a significant drop influenced by a decrease in electricity prices and less favorable weather conditions. Compared to the previous year, revenue decreased due to the absence of a one-time subsidy compensation and lower electricity production from existing assets.

The MDAX-listed company reported a 2% decrease in green electricity generation, attributing the decline primarily to the divestment of two wind farms. Despite these challenges, Encavis AG is moving forward with the construction of new solar parks, expected to be operational by 2025, which are projected to increase the company's generation capacity significantly.

Financially, Encavis AG's operating revenue and EBITDA saw reductions of 12% and 25%, respectively, with net operating profit after taxes marking a downturn from EUR 16.6 million in the previous first quarter to EUR -5.8 million. However, the management remains optimistic about achieving a moderate improvement in key financial metrics for the full year, supported by expected growth in revenue from increased power generation capacities and Encavis Asset Management.

Conclusively, the first quarter's performance, though below the previous year's figures due to various impacting factors, aligns with Encavis AG's strategic expectations, with the board reaffirming their guidance for 2024.

R. P.

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