The first quarter has been a mixed bag for Danish company European Energy. Although the company saw both the top and bottom line shrink, the quarter has nevertheless been positive enough for European Energy to upgrade its expectations for the year.
Revenue wise, there has been a decline of EUR 3 million relative to the first quarter of 2016. Now, the sale sits at EUR 22 million. EBIT has declined by approximately EUR 1.6 million to EUR 5.6 million.
The bottom line has also disappeared, going from EUR 4.4 million to EUR 3.6 million.
"I am highly satisfied with the attention which our green energy projects have received from our institutional investors, who are on the hunt for long-term and low-risk assets. The activity level in the first quarter of 2017 has been higher than normal and is very promising. This shows that we are in a position to deliver on our expectations," says Knud Erik Andersen, CEO of European Energy, in the report. He continues:
"As part of the good results and the continued high activity, we are adjusting our result before tax to EUR 17 - 22 million."
When European Energy emerged with the annual report, the expectation for the year arrived at EUR 12 - 17 million.
The company has also upgraded its revenue expectations, which were previously at EUR 120 - 160 million, to EUR 130 - 170 million.
In the report, European Energy writes that it currently has 127 MW under construction, while a further 227 MW is lying in the pipeline, ready to be constructed.
"Therefore European Energy is expecting that the positive trend will continue," reads the report.
During the first quarter, European sold two UK solar farms and a German wind farm.
The wind farm consisted of 8 turbines, and the buyer was a German institutional investor.
The company writes in the report that it did not make any kinds of acquisitions on new projects, or project rights in the first quarter of 2017. Currently, however, European Energy is investigating more opportunities in southern Europe, which could become a reality in the second or third quarter of this year.
In terms of solar, the company has begun the construction of a 31 MW solar project in Brazil, and the next phase of the project, which consists of a further 31 MW, is expected to begin soon.
Meanwhile, there is a 70 MW solar portfolio in Denmark on the way, where European Energy is in the process of preparing for construction which is expected to launch in mid 2017.
"Altogether, European Energy is expected to become a record year, when it comes to constructed capacity" writes the company in the report.
On the wind side, European Energy has connected its Italian wind farm Oppido to the grid in January, while Danish wind farm Kappel has raised and connected four out of seven turbines in the first quarter.
"In Germany, we have several farms under construction, which includes Vormark I, where several turbines have launched operations," writes European Energy.
At the end of the first quarter the company's total capacity landed at 180 MW against 150 MW at the end of 2016.
English Edit: Lena Rutkowski