PNE AG closed the 2020 business year very successfully. The Group’s Annual Report 2020, published today, shows revenues of euro 109.7 million (prior year: euro 132.8 million) and total aggregate output of euro 151.7 million (prior year: euro 171.2 million) as a result of successful operational business developments.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) amount to euro 26.3 million (prior year: euro 28.7 million) and operating profit (EBIT) to euro 8.2 million (prior year: euro 16.1 million).
The basic earnings per share amount to euro 0.02 (prior year: euro -0.01).
This means that the original guidance for Group EBITDA of euro 15 to 20 million was exceeded and the guidance for Group EBIT of euro 5 to 10 million was achieved.
Markus Lesser, CEO of PNE AG, comments on the good business results: "2020 was both an extraordinary and a successful year for PNE AG. Despite the difficult general conditions caused by the COVID-19 pandemic, we made significant operational progress in various markets. We closed the last fiscal year with a pleasing financial result and have consistently evolved strategically in accordance with the "Scale up" concept."
"Hidden reserves" created with the establishment of the wind farm portfolio
The results are strongly influenced by the development of the internally operated wind farm portfolio. PNE has created "hidden reserves" that are not immediately apparent. As a result of the investments in PNE’s own projects, pre-tax profits totalling euro 81.6 million were eliminated at Group level, of which euro 50.0 million in the reporting period (prior year: euro 11.6 million).
For the 2020 fiscal year, the Board of Management and the Supervisory Board propose that a dividend of euro 0.04 for each no-par value share entitled to a dividend in the 2020 fiscal year be distributed from PNE AG’s retained earnings totalling euro 153,027,989.70.
The remaining retained earnings shall be carried forward to a new account.
Successful operating business in Germany and abroad
In project development, PNE was able to make good progress despite some delays due to the COVID-19 pandemic.
The Company obtained further approvals, was awarded contracts in tenders, commissioned wind farms and started the construction of further wind farms.
The project pipelines in wind energy and photovoltaics were expanded and the position in the service sector strengthened.
In total, PNE completed, sold or started construction of projects with a capacity of approx. 461.2 MW in the reporting period (previous year: 450.8 MW). This means that project realisation is once again above the level of the previous year.
Positive development in offshore wind energy
PNE has also successfully developed its business in the offshore wind energy sector. For example, PNE was able to recognise the outstanding milestone receivables for the "Gode Wind 4" and "Atlantis I" projects developed by it, since the likelihood that these projects will be realised by the purchasers has increased further.
In Vietnam and in the USA, PNE is currently examining the possibilities for developing offshore wind farm projects.
Expansion of internally operated wind farms makes progress
With the completion of a further wind farm in 2020, the nominal capacity of wind farms operated by the Company itself increased from 130.1 MW to 134.8 MW last year. This year, two further wind farms with an additional 16.8 MW have already been completed and taken over into PNE’s own operations. Further wind farms intended for PNE’s own portfolio are currently under construction and in the approval process.
PNE plans to expand the portfolio of internally operated wind farms, primarily in Germany, to up to 500 MW by the end of 2023.
Project pipeline is growing
Overall, at the end of 2020, the companies of the PNE Group were working on onshore wind farm projects with 5,405 MW (previous year: 5,235 MW) of nominal output to be installed, which are in different phases of the multi-year development process. This means that the project pipeline, i.e. the existing portfolio of projects in the various development phases, was expanded compared with the previous year. There has been significant progress in the development of photovoltaic (PV) projects. In this field, the project pipeline more than quadrupled by the end of 2020. PNE was working on PV projects with a nominal capacity of 548 MWp in Germany, Italy, Romania and the USA at the end of 2020.
Service business on course
The Company has further expanded its expertise in wind turbine services. The PNE Group is well established in the market in the fields of safety technology for wind power turbines and industrial plants, aviation obstruction markers for wind power turbines and rope access technology. With operations management contracts for wind farms in France, Poland and Sweden, "energy consult", which is a member of the PNE Group, has opened up further markets in 2020 and increased its market share. In total, the order volume currently managed by PNE covers wind farms with a nominal capacity of more than 1,700 MW.
Markus Lesser: "The trend shows: in the 2020 fiscal year, we have made further progress in implementing our strategic expansion to become a Clean Energy Provider through our "Scale up" concept and we can now reap the first rewards. We are on a successful path that we will persistently continue to follow."
Tailwind for 2021
PNE is well positioned for its further development. And the course for the coming years is clear: PNE will continue to strengthen its core business of project development and internal operations and, at the same time, consistently push ahead with the expansion of services, technologies and markets. Despite necessary investments in the strategic expansion of the business model, PNE expects Group EBITDA totalling euro 24 to 32 million for the guidance for fiscal year 2021. Due to the ongoing COVID-19 pandemic, it can be expected at this time that the operating business will be subject to postponements of project right sales and project implementations from 2021 to 2022.