PNE Braces for Offshore Hit

PNE AG has lowered the expected profit for the 2018 financial year due to an anticipated loss of circa EUR 10.8 million invested in three offshore wind projects in Germany.

PNE AG made stock value adjustments on the Jules Verne, Nautilus and Nemo projects located in Zone 4 of the German exclusive economic zone because their realization “has become less likely based on the current regulatory undertakings.”

According to preliminary figures, the adjustments include reducing the EBITDA guidance from between EUR 20-26 million to approximately EUR 16.5 million and EBIT guidance from EUR 10-16 million to some EUR 7.8 million.

In the operating business, PNE AG exceeds the upper region of the EBITDA guidance with approximately EUR 27.2 million, as well as the upper region of the EBIT guidance with some EUR 18.5 million.

The German company claims that the re-evaluation is based on the Land Development Plan 2019, last discussed on 31 January, which, in perspective, shows additional developments of 2GW on the already specified 15GW in Zone 3, while Zone 4 is not affected by the specifications.

In addition, the plan determines that additional extension exceeding the 17GW capacity shall be made primarily in Zone 3, which means the realization of the Atlantis II and Atlantis III projects remains likely.

PNE AG stated it expects to be successful with a constitutional complaint and anticipates it could have a damage claim amounting to EUR 10.8 million. However, the claim would be recognized in profit or loss after a valid final decision at the earliest, the company concluded.