Results of EP Power Europe Group for the year ended 31 December 2019
19. 8. 2020
We are pleased to confirm that in the year ended 31 December 2019, EP Power Europe, a.s. (“EPPE”) and its subsidiaries (collectively the “Group“) continued to successfully operate their traditional energy assets while further focusing on selective acquisitions in Europe.
The Group operates across developed markets including the UK, Italy, Ireland, France and Germany with a focus on affordable power generation and sophisticated renewable energy (biomass). Through a fleet of controllable power plants, the Group provides security of supply as solar and wind renewables with their limited load factor can only partially cover the power demand.
The Group’s sales increased by 29% compared to 2018, reaching EUR 5,106 million, and Adjusted EBITDA improved by 32%, totaling EUR 442 million. Pro Forma Net Leverage, excl. net loans and borrowings provided by the parent company, remained low as it reached 0.5x for the year ended 31 December 2019. From the cash flow perspective, the Group achieved a particularly pleasing Cash Conversion Ratio of 68%.
The growth was driven by improved operations as well as several successfully completed acquisitions. Notably, in terms of enhancement in existing assets, EPPE completed and commenced operations of the Lynemouth project – the conversion of a hard coal power plant into a carbon-neutral biomass power generation unit. By further acquisitions in the UK, Ireland, Italy and France the Group achieved an even higher degree of diversification in terms of geographies and fuel types.
Post conversion completion of Lynemouth to the biomass power plant and reflecting on the recent acquisitions, approximately 60% of the EPPE Group Adjusted EBITDA comes from contracted or regulated activities which underpins the stability of the Group results.
In addition, the Group achieved a further reduction of its CO2 footprint per MWh produced – one of its central KPIs – by 12%. The total installed capacity of EPPE reached 11.5 GW in 2019, out of which 73% is either zero- or low-carbon. The Group intends to progress its strategy of continuous CO2 footprint reduction, whilst meeting its financial targets and simultaneously providing flexible capacity to contribute to the security of supply in the markets the Group operates.
For more details, as well as for the definition of Adjusted EBITDA, Pro Forma Net Leverage and Cash Conversion Ratio, please refer to the “EP Power Europe – 2019 Results” presentation available here.