Cuxhaven – The PNE WIND Group has successfully brought its core business of wind farm development forward in the first half of 2016. In this period, the PNE WIND Group commissioned, started construction on or sold wind farms with a total nominal capacity of 97.8 MW. The onshore wind farms “Westerengel” and “Apensen II” were completed and commissioned. The wind farms “Köhlen”, “Holzthaleben” and “Altenbruch Repowering” are under construction.
The Wind Farm-Portfolio of internally held projects which are already commissioned or under construction has increased to 142.5 MW. Accordingly, PNE WIND has reached the prerequisites for the planned sales transaction.
For the offshore project “Borkum Riffgrund II”, which PNE WIND continues to support as a service provider, DONG Energy decided in June of this year to finance and construct the project. PNE WIND will not only receive a milestone payment from this, but it also gains a further reference highlighting its expertise in the development of offshore projects. Furthermore, PNE WIND is preparing the “Atlantis I” project for the upcoming offshore tender in 2017.
Internationally, the operational activities have been consistently developed. At the beginning of the year, PNE WIND concluded a framework agreement with John Laing Investments Limited for wind farms in France and Poland. The construction of the first wind farm under this agreement with a nominal output of 21.6 MW is expected to begin by the end of 2016. In Sweden, Poland and France, PNE WIND has received important permits for its projects under development.
The high expenses related to the construction of the wind farms, which first need to be sold before they can be recognized as earnings, had a negative impact on the results during the first six months of the year. When compared to the first half of 2015, which was very successful due to the sale of the UK business, the results are now significantly lower. For this reason, a comparison based solely on the half year results provides limited insight into developments. In the first six months of 2016, the Group generated sales of euro 44.8 million (prior year: euro 71.9 million), a total aggregate output of euro 61.1 million (prior year: euro 89.8 million), an operating profit (EBIT) of euro -1.4 million (prior year: euro 24.0) and undiluted earnings per share of euro -0.10 (prior year: euro 0.25).
After the period under review, the amended EEG 2017 and the new Offshore Wind Energy Act (WindSeeG) were passed. In the future, wind farms in Germany will first need to be successful in a tender process in order to receive a feed-in tariff. Although the market remains attractive with a set number of MWs being auctioned each year, PNE WIND is critical of the new regulatory framework for both onshore and offshore wind farms. The Group is preparing itself for these regulatory changes, as well as other market developments and will adapt its strategy accordingly.
In July 2016, the PNE WIND Group has concluded a new syndicated loan agreement with a volume of euro 30 million and a credit guarantee facility with a volume of euro 10 million with a consortium consisting of several banks and an insurance company under the leadership of Commerzbank AG.
On July 29, 2016, the Supervisory Board resolved to extend the contract of the Chief Financial Officer Jörg Klowat by three years up to March 31, 2020.
Markus Lesser, CEO of PNE WIND AG, commented to the results for the first six months of the year: “With a solid financial basis and an equity ratio of 32 percent, we can quickly bring our business activities forward. Our objectives for the current year remain unchanged. As planned, we intend to sell our Wind Farm-Portfolio, which we have built up in the last few years, via an IPO or through a direct sale. In the offshore sector, we look forward to the upcoming tender and last but not least, we will continue to expand our international activities. Provided that the sale of our Wind Farm-Portfolio can be realised as planned, we confirm the Group EBIT forecast in the area of up to euro 100 million this year.”
Source: PNE WIND