HAMBURG (dpa-AFX) - New wind and solar farms and the acquisition of Italy's Stern Energy offset lower energy prices and less favorable weather in sales at Encavis in the first half of the year. In the process, Encavis did slightly better than analysts expected despite a drop in operating profit. Management led by Christoph Husmann, the company's CEO since the beginning of the year, confirmed its forecast for the current year and its medium-term targets up to 2027. Shares in the MDax group reacted little to the news in the aftermath.

Encavis shares rose in price on the Tradegate trading platform by around one percent to 14 euros compared to the Xetra close. Previously, they had continued their recent negative trend in the Xetra main trading with a low since the beginning of 2022. With a drop of around a quarter, the shares are the second-largest loser in the index of mid-cap stocks over the course of the year. Over a period of around twelve months, they have lost as much as 44 percent at their peak.

Encavis' earnings in the first six months of 2023, at a good 226 million euros, were at the same level as in the same period of the previous year, as the MDax-listed group announced on Monday evening after the close of trading on the stock exchange. The deduction of the electricity price brake has already been made.

Operating earnings before interest, taxes, depreciation and amortization (Ebitda), however, fell by around 11 percent to 151.6 million euros. The company's management also justified this with a "lower margin, as is customary in the market" for Stern Energy compared with electricity generation from renewable energies. The acquisition offers technical services for the Europe-wide construction, operation and maintenance of photovoltaic plants.

Adjusted earnings per share decreased from 0.33 to 0.31 euros per share, which was less pronounced. This was due to lower tax payments and better net interest income.

For the full year, Encavis has set itself the target of achieving sales of 440 million euros after deducting the electricity price brakes, compared with 462.5 million euros last year. Operating earnings are now expected to reach 310 million euros, up from 350 million euros. Adjusted earnings per share are expected to slightly exceed the prior-year figure of 0.60 euros.

Board member Mario Schirru was optimistic about the future: "In view of the numerous wind and solar park projects available on the market and the continuing well-filled project pipeline of our strategic development partners, we look forward with confidence to the coming years of increasing growth," he said, according to the statement./lew/mis