On Track Despite Obstacles: PNE AG Confirms Forecast For 2024
Cuxhaven, Germany - Despite project delays, PNE AG sees itself on an operationally good path in the 2024 fiscal year. The high number of projects under construction and in preparation for construction will ultimately form the basis for a successful full year, according to PNE's optimistic assessment.
Following PNE's half-year results: PNE confirms 2024 annual guidance
For the first half of 2024, PNE reports total aggregate output of euro 174.9 million (H1 2023: euro 116.7 million) and revenues of euro 60.6 million (H1 2023: euro 57.1 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) reached EUR 8.7 million (H1 2023: EUR 18.1 million) and basic earnings per share of EUR -0.26 (H1 2023: EUR -0.18).
The completion or sale of some projects has been delayed for delivery or weather-related reasons. In addition, the lower wind supply in the second quarter of this year combined with the expected lower electricity prices are having a negative impact on earnings.
“Even if the results in the first half of the year are not yet where we would like to see them, we are confident we will catch up in the second half of the year and achieve our planned result for the full year,” says Per Hornung Pedersen, CEO of PNE AG since 1 August 2024. “The prospects for this are very good. Many projects have reached a high level of maturity and are close to commissioning or sale. We expect milestone payments from previous project sales, especially in the fourth quarter.”
Pedersen expects the Group to generate positive EBITDA of EUR 40 to 50 million in the 2024 financial year. Pedersen: “We are well on track to achieve this target.”
Wind farms: focus on Germany and France - business in the USA sold
Ten wind farms with a total nominal output of 226 MW were under construction in Germany and France at the end of the first half of 2024 (H1 2023: 183 MW). A further 118 MW were awarded in the tenders of the Federal Network Agency in the first half of the year.
In the first half of the year, PNE AG also completed the sale of its US business. The overall package includes a large project pipeline of wind, PV and storage projects in various phases as well as three projects that can be implemented in the short to medium term. Depending on the implementation of the projects, in addition to the first payment in the single-digit million range, the investments made in the USA may flow back into the Group over the next five years and have a positive impact on the Group's earnings and liquidity situation, according to PNE.
Project pipeline and service business growing - expansion of own operations continues
Despite the sale of the US business, the wind and PV project pipeline has grown to 17,937 MW (H1 2023: 16,590 MW) compared to the same period of the previous year. This increase occurred despite the fact that 2,118 MW of output left the project pipeline due to the sale of the US business. Onshore wind energy projects account for 9,329 MW. The pipeline of offshore wind energy projects comprises 2,500 MW. In the photovoltaic sector, projects with an output of 6,108 MW are in the pipeline. In Germany alone, the PNE Group had wind farms with a nominal output of 2,597 MW (FY 2023: 2,314 MW) in development.
The expansion of the service business primarily contributes to steady earnings and also creates the basis for further business expansion. In the first half of 2024, the PNE Group was able to expand its international operations management business as well as technical inspections and tests. The order volume managed in operations management grew to approx. 2,930 MW (H1 2023: 2,710 MW).
The wind farm portfolio in PNE's own operation amounted to approx. 412 MW at the end of the first quarter (Q1 2023: 346 MW). The wind farms of the PNE Group generated 380 million kWh of clean electricity in the first half of this year (Q1 2023: 325 million kWh), an increase of approx. 17 %.
Source: IWR Online, 15 Aug 2024