PNE Balance Sheet: Lower Wind Supply, Interest Expenses And Weather-Related Delays Burden - Guidance 2024 Confirmed
Cuxhaven, Germany - The internationally active PNE Group reports a decline in operating profit in the first nine months of 2024 compared to the same period of the previous year. PNE CEO Per Hornung Pedersen expects a strong fourth quarter and confirms the guidance for the 2024 fiscal year.
Reduced wind supply, interest expenses and weather-related delays in commissioning depress earnings
For the first nine months of 2024, the PNE Group reports a total aggregate output of euro 210.9 million (9M 23: euro 156.9 million) and revenues of euro 77.6 million (9M 23: euro 75.1 million). At EUR 6.2 million, earnings before interest, taxes, depreciation and amortization (EBITDA) were around 62% lower than in the same period of the previous year (9M 23: EUR 16.5 million). The consolidated result of EUR -49.1 million (previous year: EUR -24.9 million) includes interest expenses of EUR 19.8 million (previous year: EUR 6.2 million) from the subsequent measurement of interest rate swaps and loan liabilities held by the Group. The reported undiluted earnings per share are therefore EUR -0.64 (9M 23: EUR -0.33).
According to PNE, the main reasons for the comparatively weak company figures are the lower wind supply, which resulted in reduced electricity production, as well as delayed commissioning of own wind farms due to supply bottlenecks and unfavorable weather conditions. In addition, the financial result was negatively impacted by IFRS valuations. In addition, the expected lower electricity prices compared to the previous year had a negative impact on earnings, according to PNE.
PNE CEO Hornung Pedersen confirms guidance for 2024
In the difficult market environment, PNE CEO Per Hornung Pedersen is not satisfied with the result achieved after nine months, but he is confident with regard to the fourth quarter and the year as a whole. “ The last three months of the year are characterized by strong winds. In addition, we completed the sale of the Papenrode projects in Germany and Sallachy in Scotland at the beginning of the fourth quarter. In the international markets, we expect several milestone payments from previous project sales in the last quarter. The fourth quarter will therefore be a strong quarter in terms of earnings. We confirm the guidance for the 2024 fiscal year with positive EBITDA for the Group in the range of euro 40 to 50 million,” says Hornung Pedersen.
Overall pipeline stable despite sale of US business - high construction activity - numerous further approvals
Although projects with an capacity of 2,118 MW were removed from the project pipeline due to the sale of the US business in the first half of the year, the nominal capacity of the pipeline for wind and PV projects increased slightly from 17,527 MW to 17,768 MW compared to the same period of the previous year. This includes 9,178 MW (previous year: 8,820 MW) of onshore wind energy projects, 2,500 MW of offshore wind farm projects and 6,090 MWp of PV projects (previous year: 6,207 MWp).
As at September 30, 2024, thirteen wind farms with a capacity of 288.6 MW were under construction in Germany and France. In addition, in the first nine months of 2024, the PNE Group received approvals for seven wind farm projects with 119.4 MW in Germany and France as well as for four PV projects in Poland, Romania and South Africa with a total capacity of 325 MWp.
Wind farm portfolio in own operation further expanded
The generation of electricity in company owned wind farms and own photovoltaic systems is an important pillar of PNE‘s corporate strategy. Compared to the previous year, PNE's own wind farm portfolio was further expanded and amounted to approx. 412 MW at the end of the third quarter (end of Q3 23: 348 MW). In the first nine months of this year, the PNE wind farms generated 485 million kWh (450 GWh) of electricity (prior year: 421 million kWh).
Source: IWR Online, Nov 11 2024