Result for the quarter: PNE AG generates satisfactory result and further expands the project pipeline
- Satisfactory result in light of the market environment
- The expansion of the own generation portfolio is progressing
- Project pipeline reaches another record level at 17.5 gigawatts
Cuxhaven, 13 November 2023 - In a challenging market environment, PNE AG achieved a satisfactory result in the first nine months of 2023. The project pipeline has increased considerably and the expansion of its own generation portfolio is progressing rapidly.
In the first nine months of 2023, the Group recorded total aggregate output of euro 156.9 million (prior year: euro 152.1 million), revenues of euro 75.1 million (prior year: euro 76.7 million) and earnings before interest, taxes, depreciation and amortisation (EBITDA) of euro 16.5 million (prior year: euro 21.1 million). The shown undiluted earnings per share of euro -0.33 (prior year: 0.09 euros) was negatively influenced largely by interest from follow-up valuations of interest SWAPs and loan liabilities held in the Group. Last year, the interest from the valuations made a positive contribution to the result for the period. But in the first nine months of 2023, it was negative. These valuation differences are due primarily to the market values on the reporting date, the subsequent valuation of the SWAPs taken out for interest rate hedging or the effective interest rate of loan liabilities as part of project financing. They do not reflect the operating result.
The industry is currently characterised by numerous factors that create delays to projects. For example, transport licences issued late are resulting in some projects having to be postponed until the following year. Added to this are volatile supply chains due to the war in Ukraine. In addition, higher interest rates and further increases in the cost of materials have been recognised. In order to cope with the current challenges, PNE has acted with foresight in the project development and realisation of wind farm projects. The company already ordered eleven transformer stations and 700 kilometres of cable several months ago, which it is now receiving at a good price and at the right time. PNE also secured KfW loans of approx. euro 400 million on favourable terms last year.
"Considering these market conditions, we are satisfied with the result achieved in the first nine months," said Markus Lesser, CEO of PNE AG. “Our countermeasures have worked and our resilient business model is helping to cushion the impact. Nevertheless, we are not immune to projects being postponed.”
Markus Lesser explains: "We are very pleased that, despite the challenges, we expect to achieve and in some cases even exceed the targets we have set ourselves for our "Scale up" strategy."
Wind and PV project pipeline is growing rapidly
Overall, the nominal capacity of the pipeline for wind and photovoltaic projects increased noticeably once again from 11,430 MW in the same period last year to 17,527 MW. Onshore wind energy projects accounted for 8,820 MW. The pipeline of offshore wind energy projects now comprises 2,500 MW. There was also major progress in the first three quarters of this year in the development of photovoltaic projects. In this area, our pipeline increased from 4,049 MWp to 6,207 MWp. This means that the project pipeline once again reached a record level.
In Germany alone, the PNE Group worked on wind farms with a nominal capacity of 2,529 MW (prior year: 2,004 MW). Nine wind farms with a nominal capacity of 204.7 MW were under construction in Germany, including one service project. Construction has begun on another 10.8 MW wind power project in France.
Goals for the expansion of own generation have been exceeded
The wind farm portfolio operated by PNE had a capacity of 348 MW at the end of the third quarter. This is an increase of 65 MW compared to the previous year. In the fourth quarter, PNE is planning to start construction on three projects with an output of 69.6 MW this year, while also completing or partially completing five projects with 58.9 MW. Together with the other wind farms under construction, the "Scale up" strategy goal of 500 MW in operation or under construction by the end of 2023 is expected to be significantly exceeded. Generating electricity in PNE's own wind farms and photovoltaic plants is and remains an important pillar of our “Scale up 2.0” corporate strategy.
In the first nine months of this year, the PNE Group's own wind farms generated 421 GWh of clean electricity (previous year: 346 GWh) and saved the environment 317,000 tonnes of CO2 emissions (previous year: 260,000 tonnes). Even in the event of a drop in wind supply of 10 percent, this would be able to supply 113,000 three-person households with green energy. The wind farms thus make an important contribution to climate protection and independent energy security.
More assets under management in the service business
The expansion of the service business also contributes to further increasing the share of steady earnings. In the first nine months of this year, PNE was able to expand its international business of operations management as well as technical inspections and tests with additional services. The order volume managed by the PNE Group in operations management increased to around 2,800 MW. It now consists of 955 wind turbines from various manufacturers.
Quarterly results and prospects are the basis of a successful year
"We continue to confirm our guidance for the remainder of the 2023 fiscal year with positive EBITDA for the Group in 2023 in the range of euro 30 to 40 million," said Markus Lesser. “We are very optimistic that we will achieve this goal.”