The wind farm project developer, PNE WIND AG published its financial report for the third quarter and the first nine months of 2015 today. The operational business of the PNE WIND Group was characterized by the implementation of projects in Germany as well as the continued progress in the development of wind farms at home and abroad. At the end of the third quarter 2015, wind farms with approx. 119.8 MW of nominal output were under construction (46.2 MW) or commissioned (73.6 MW), of which 57.6 MW were transferred to the YieldCo after the wind farm was commissioned.
During the first nine months of the financial year, the Group generated a total performance of euro 189.5 million (previous year: euro 201.5 million), an operating profit (EBIT) of euro 16.7 million (previous year: euro 7.7 million) and basic earnings per share of euro 0.13 (previous year: euro 0.00). Despite the high level of investments being made in our YieldCo projects, the results benefited from the first positive effects out of the sale of our UK subsidiary. Earnings before tax from YieldCo projects in 2015 totalling approx. euro 17.1 million are not included in the reported EBIT figure and will be first reported as earnings when the shares in the YieldCo are sold.
In the third quarter 2015, the Group reported a total performance euro 99.7 million (previous year: euro 66.8 million), an operating profit (EBIT) of euro -7.3 million (previous year: euro 4.9 million). The decrease compared to the same period in 2014 can mainly be attributed to the Group’s internal development of YieldCo projects.The positive earnings development in the first nine months of 2015, were primarily driven by the sale of our subsidiary PNE WIND UK and its project development pipeline. In the coming years, we expect our Group results to be positively influenced by milestone payments. Till 2020, total milestone payments could add up to approx. euro 86.4 million.
The sale of our subsidiary in the United Kingdom represents a very successful transaction. The investments made in the development of the projects in the UK are now paying off. Looking to the future, the Group aims to further optimise its international activities. In attractive markets, activities will be strengthened while in less promising markets the value already created in our developed projects will be secured and realised.
The YieldCo will have up to approx. 150 MW when completed and it represents a core development of our operations and is central to the strategic development of the PNE WIND Group. Currently wind farms with 93.9 MW are already in operation or are under construction. The YieldCo requires major investments and as at September 30, 2015, the company had already invested approx. euro 54.8 million of its own funds. In the reporting period, the “Chransdorf” wind farm with 57.6 MW – the single largest onshore project in our corporate history – was taken into operations and transferred to the YieldCo.
Markus Lesser, Interim CEO and COO PNE WIND AG, “While the realisation of the YieldCo is connected with significant upfront costs, we are sure that this will pay off for PNE WIND and our shareholders. These investments are creating highly valued assets which generate stable income from the sale of electricity, as well as from the operation and management of the wind farms. PNE WIND is already benefiting from this business and we are achieving solid returns from the operational wind farms. Against this backdrop, it is important to continually observe market developments surrounding YieldCos and to examine in the near future how best to achieve the best result in light of our overall strategic approach.”
Business developments at the PNE WIND Group have been positive and we confirm our forecast of achieving a cumulative EBIT for the 2014 to 2016 fiscal years of euro 110 to 130 million and see the prospect of increasing our forecast upon the successful implementation of the YieldCo business. For fiscal 2015, we expect that the Group-EBIT will continue to develop positively and forecast that the consolidated EBIT should be in the range of euro 30 to 40 million.
Markus Lesser, “The business is developing positive and we are optimistic about the future. With an equity ratio of 35 percent, the Group has a solid foundation on which to grow the business. Our development pipeline is well filled with onshore and offshore projects. With the YieldCo, we have expanded our business model and at the same time strengthen our competitive position.”