In its newly released annual report, European Energy A/S, the Danish developer and power producer, maintains its positive outlook for 2020. European Energy A/S continues to see interest for its energy parks among institutional investors despite the COVID-19 health crisis, while the second major business area, electricity sales, is not materially impacted by current low power prices in Europe, owing to most sales being done via long term offtake agreements.
Knud Erik Andersen, CEO of European Energy A/S, said:
“Of course, we are impacted by the COVID-19 situation and we need to be as vigilant as possible. We have seen some minor interruptions at construction sites in some markets and most of our employees have been working from home for some time now. However, we are confident that we still can reach our financial targets for 2020. Our suppliers and partners have continued to deliver products and works on schedule while our own employees have shown remarkable commitment and resilience in this situation. This is why we can release our annual report with an unchanged financial outlook.”
European Energy A/S expects an EBITDA level within the range of EUR 52-58 million. Profit before tax for 2020 is expected to reach EUR 35-39 million. This compares to EUR 44.3 million EBITDA and profit before tax of EUR 37.4 million in 2019.
Due to the COVID-19 crisis and, out of an abundance of caution, European Energy A/S has decided to only fill critical positions at this time while limiting new capital-intensive activities.
On this point Knud Erik Andersen commented:
“We continue to be careful and monitor the current situation as it evolves. In order to deliver on our projections everybody at European Energy has taken a step up as our colleagues at European Energy have proven they can do, time and time again. Together we have managed to expand the business and increase activity levels every year since we began in 2004. We have substantially increased the number of full-time employees in 2019 to 150 colleagues in offices located across four different countries. We continue to expect growth across the business well into 2020 and beyond.”
European Energy A/S will release its Interim Report for Q1 on 27 May 2020.