Italy’s Falck Renewables SpA (BIT:FKR) expects to triple its net profit to roughly EUR 45 million (USD 47.9m) over the next five years as it looks to raise its installed power generation capacity by around 60% through 2021.
On Tuesday, the renewable energy producer presented its industrial plan for the period 2017-2021 following its approval by the board of directors the same day.
According to the five-year plan, Falck will spend a total of EUR 702 million during that period in an effort to boost its installed capacity to above 1,300 MW by 2021 from the current 822 MW. The company will focus its investments on onshore wind and solar, pursuing geographic expansion in “low-risk mature markets with strong existing renewables fundamentals”. By the end of 2021, the company expects its wind segment to account for about 87% of the installed capacity, while solar will total around 9%. Waste-to-energy and biomass will make up the remaining 4%.
Falck has identified both Northern and Southern Europe, the Nordic region and North America as geographic areas of interest. Its subsidiary Vector Cuatro, in turn, will monitor opportunities in emerging markets for future entry.
The company noted it plans to launch energy efficiency services in Italy as part of a plan to extend the core services currently performed in-house. It anticipates own and third-party assets managed globally to grow from 2,100 MW to 4,500 MW in 2021.
When it comes to financial performance, Falck intends to boost profitability by reducing operation and maintenance (O&M) per MW and general and administrative (G&A) expenses. Earnings before interest, tax, depreciation and amortisation (EBITDA) is seen at around EUR 132 million in 2017 and at EUR 201 million in 2021.
The company commits to increase its dividend distributions from EUR 0.049 for 2017 to about EUR 0.063 for 2020.
At the same time, Falck confirmed its EUR-130-million EBITDA forecast for 2016. This year’s net profit is seen at EUR 13 million before year-end one-off charges and provisions.
Source: SeeNews
