In the second quarter of 2019, European Energy took several important strategic steps.
In this quarter, European Energy began construction of the record-breaking Troia solar PV project with a full capacity of 103 MW. The solar farm will be constructed in two phases and when completed in the first quarter of 2020, the Troia project will be the largest solar farm in Italy. The beginning of this construction meant that, by the end of the quarter, the Group had 204.7 MW under construction.
Knud Erik Andersen, Chief Executive Officer said:
“With our business model it is important that we constantly have a high level of construction activity. Our team has done an excellent job so far. We acquired the project in February this year, and four months later, we have it in construction. Before we bought the project, it had been sitting fallow for seven years. Ongoing construction activity in excess of 200 MW will allow us to reach our long term targets.”
European Energy also sold six solar PV plants with a combined capacity of 10.1 MW in Spain during the second quarter. The plants were constructed in 2008, when European Energy entered the Spanish market. In the years following the construction, the subsidies for the plants were impacted by several retroactive cuts by the Spanish state due to the global financial unrest in 2008-2010.
“We are pleased that we have sold the Spanish projects and that the sales will generate significant liquidity for the group. It is important to point out that we are fully committed to the Spanish market in the future and currently we have a sizeable solar and wind portfolio under development here,” said Knud Erik Andersen.
The profit before tax for the first half year of 2019 for the Group equals EUR 22.4 million, compared to 2018 where it was EUR 0.9 million. EBITDA for the first six months was EUR 26.5 million, compared to EUR 5.4 million last year. Profit before tax for the quarter was EUR 1.7 million up from 2018 where the Group experienced a loss in the second quarter of EUR 1.2 million.
Late in the second quarter, European Energy closed the book on a new green bond of EUR 140 million at 5.35 per cent interest. The bond received significant attention from investors and was over-subscribed with requests for EUR 296 million.
Part of the proceeds will fund new green projects. In July, EUR 85 million was used for an early redemption of the company’s outstanding 2021 Bonds. Eighty-seven investors secured an allocation of the new green bond from European Energy. The bond was the first from a non-financial institution listed on the Nasdaq Green Bond Index Danmark.
European Energy still expects to deliver an EBITDA of EUR 40-45 million and a profit before tax of EUR 30-35 million in 2019.