PNE Wind Sees Red

German wind farm developer PNE Wind recorded EUR 1.4 million operating loss in the first six months of 2016, as compared to EUR 24 million operating profit reported for the same period a year earlier, as the high expenses related to the construction of wind farms dragged the company’s results down.

In the first six months of 2016, the group generated sales of EUR 44.8 million, compared to EUR 71.9 million generated in the first half of 2015. The results in the first half of 2015 were positively affected by the sale of the company’s UK business.

During the first half of 2016, PNE Wind commissioned, started construction on or sold onshore wind farms with a total nominal capacity of 97.8 MW.

Loooking at the company’s offshore wind activities, after selling the 450MW Borkum Riffgrund II project to DONG Energy, PNE Wind has remained involved in the project as a service provider. DONG made the Final Investment Decision for the project in June 2016, for which PNE Wind expects to receive a milestone payment.

Furthermore, the company is preparing the 400MW Atlantis I project for the upcoming offshore tender in 2017.

”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,” PNE Wind said in the report.

PNE Wind is currently working on six own offshore wind projects in the North Sea, and acting as service providers for another six.

In July 2016, the group concluded a new syndicated loan agreement with a volume of EUR 30 million and a credit guarantee facility with a volume of EUR 10 million with a consortium consisting of several banks and an insurance company under the leadership of Commerzbank AG.

On 29 July, 2016, the group’s 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, said: “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 of in the area of up to euro 100 million this year.”