EBIT of euro 23.7 million (prior year: euro 7.2 million)
• International business continues to develop positively
• Profit guidance increased to euro 17 to 23 million
Cuxhaven, November 8, 2017 – PNE WIND AG achieved significant operational and economic success in the first nine months of 2017:
The development of a European wind farm portfolio is progressing well and project rights for wind farms with a total nominal output of 105.2 MW were sold in Sweden and the USA.
By optimising the project financing of the 142 MW wind farm portfolio sold at the end of 2016, PNE WIND AG realised a subsequent purchase price payment.
Project rights sold in the USA and in Sweden
In the USA, WKN AG, a member of the PNE WIND Group, sold project rights for a wind farm in Montana (80 MW) to Pattern Energy Group 2 LP ("Pattern Development") in July. In September, WKN sold the rights of the Swedish "Laxaskogen" wind farm project (25.2 MW) to an investor. WKN will also be responsible for the construction management of the wind farm and will receive further payments in this context.
Substantial profit contribution from the portfolio sale in 2016
PNE WIND also benefitted from the optimisation of financial services. This had a positive impact on the results, since PNE WIND received a subsequent purchase price payment of approx. euro 21.4 million in the third quarter. This is related to the 142 MW wind farm portfolio sold at the end of 2016. PNE WIND AG sold an 80 percent stake of its portfolio shares to a subsidiary of Allianz Global Investors. The agreement included a provision that a subsequent purchase price payment becomes due, provided that PNE WIND AG optimises its project financing. PNE WIND AG succeeded in doing so by increasing the debt ratio and through cost reductions. Also pleasing for PNE WIND: As a result of the optimisations, the enterprise value of the wind farm portfolio rose from euro 330 million (as at the end of 2016) to approx. euro 360 million in 2017. An additional positive EBIT effect of approx. euro 5.4 million resulted from the revaluation of the twenty percent stake in the portfolio that PNE WIND AG continues to hold.
Good results for the third quarter of 2017
Overall, the PNE WIND Group achieved revenues of euro 81.2 million in the first nine months of this year (prior year: euro 77.1 million) and a total performance of euro 101.8 million (prior year: euro 101.9 million). The operating result (EBIT) amounted to euro 23.7 million and was thus well above the previous year's figure of euro 7.2 million. The Group achieved undiluted earnings per share of euro 0.21 (prior year: euro -0.04). With a strong equity ratio of 53.4 percent (previous year: 30.5 per cent) and a high level of liquidity amounting to EUR 162.6 million as at September 30, 2017, the PNE WIND Group continues to be in a good position.
Investments improve the prospects
The economic achievements create scope for further investments that will improve the prospects of PNE WIND AG. The development of a 200 MW wind farm portfolio is also in the foreground. In this way, values are created that are only realised with an effect on net income when the portfolio is sold.
Markus Lesser, CEO of PNE WIND AG, commented: "We are currently in a transitional phase - although operationally and economically successful. „The wind energy industry is changing and the framework conditions are also changing considerably. On the other hand, we are implementing a strategic concept that will be published in November. The very good economic result after nine months gives us the necessary scope for implementing this strategy ".
New EBIT guidance for the consolidated results: euro 17 to 23 million
Based on its previous course of business during the first nine months of 2017, PNE WIND AG increases its EBIT guidance for the consolidated results in the entire year of 2017 from previously euro 0 to 15 million to euro 17 to 23 million.
The quarterly report of PNE WIND AG is available from today on the Company's website www.pnewind.com in the Investor Relations section.