German renewable energy firm PNE AG (ETR:PNE3) reported a small loss for 2018 and missed its operating profit target, but said the year was “operationally successful” and guided for higher earnings in 2019.
The company’s net loss amounted to EUR 1 million (USD 1.1m), versus a profit of EUR 17.1 million in 2017.
PNE said last month it would not be able to reach its forecasts for earnings before interest and tax (EBIT) and before depreciation and amortisation (EBITDA) because of valuation adjustments on some offshore wind projects hindered by a constitutional complaint. A reassessment of the Jules Verne, Nautilus and Nemo offshore wind projects in Zone 4 of Germany's exclusive economic zone has led to non-cash value adjustments of roughly EUR 10.8 million.
EBIT fell to EUR 7.8 million from EUR 23.1 million in 2017 and arrived below the company’s guidance of EUR 10 million-16 million.
EBITDA dropped to EUR 16.5 million from EUR 28.6 million a year ago, not reaching the guidance of EUR 20 million-26 million.
“Particular sales successes would have led to an over-fulfilment of the targets with EBIT of approx. EUR 18.5 million and EBITDA of approx. EUR 27.2 million if this had not been burdened by other aspects,” PNE said.
Revenue contracted by 20% year-on-year to EUR 91.4 million.
The combined capacity of projects sold, commissioned or under construction in 2018 was 235.7 MW, similar to that in 2017. PNE’s “Wind Farm Portfolio 2020” is moving as planned and has reached 71.3 MW in operation or under construction.
PNE also continues to progress its plan to grow from a project developer into a Clean Energy Solution Provider. “Earnings are to be increased and stabilised with the “scale-up” programme. A significant increase in the service share and even greater diversification in the project business should improve the risk profile on a sustained basis,” said the company.
In 2019 PNE expects to incur additional upfront expenditure in the low single-digit million range for the strategic expansion of the business model and the preparations for entry into new markets. Still, it guided for a “clearly positive EBITDA” of between EUR 25 million and EUR 30 million, and an EBIT of EUR 15 million-20 million at the group level. This forecast does not include the profits from projects to be built in 2019 under the "Wind Farm Portfolio 2020".