ABO Wind affirms 2021 profit target despite delays, higher supplier prices

Wind turbine. Image by: ABO Wind (www.abo-wind.com).

December 6 (Renewables Now) - German renewables developer ABO Wind AG (ETR:AB9) on Friday maintained its 2021 forecast which projects a slight profit increase despite the negative impact of delivery delays and price increases from suppliers.

Net profit in 2021 is expected to slightly exceed the EUR-13.1-million (USD 14.79m) surplus booked last year and grow further in 2022 although price increases for solar modules and wind turbines put pressure on the performance, especially on projects for which tariffs had been secured in tenders in previous years, the company said. The negative effects will be offset through future tariff tenders and power purchase agreements (PPAs) in the long term.

"Provided we do not experience any negative surprises in the next four weeks, our annual result in 2021 should be slightly above that of 2020," said managing director Jochen Ahn.

In addition, the Wiesbaden-based developer reiterated its outlook for an increasing annual profit which should reach at least EUR 20 million by 2024.

In the first half of the year, the company's net profit rose to EUR 6.5 million from EUR 6.3 million a year earlier while revenues grew 4% to EUR 61.7 million.

ABO Wind's optimism is fuelled by the ambitious plan of the new German government to boost the share of green electricity to at least 80% of the country's energy mix by 2030 and the growing electricity consumption amid the increasing electric mobility and digitalisation.

(EUR 1 = USD 1.129)

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