German wind power-focused renewables company PNE AG (ETR:PNE3) has swung to profit in the first nine months of 2022, a period which it described as very successful despite the challenging market environment.
The company reported a net profit of EUR 6.6 million (USD 6.63m) for January-September 2022 versus a loss of EUR 8.5 million a year earlier. The result includes EUR 25.3 million in extraordinary interest income from subsequent measurement of the group's interest rate swaps and loan liabilities, compared to income of EUR 3.2 million in the same period of 2021.
PNE’s top line jumped by 41.5% on the year and helped earnings before interest, taxes, depreciation and amortisation (EBITDA) rise by 66%.
"The "electricity generation" segment contributed to the good results and overall performance. The higher number of wind turbines in operation, combined with high electricity prices, compensated for the additional expense for increased material costs,” commented chief executive Markus Lesser.
The table below gives more information about PNE's nine-month financial performance.
| Figures in EUR million |
9-mo 2022 |
9-mo 2021 |
| Total aggregate output |
152.1 |
134.6 |
| Revenues |
76.7 |
54.2 |
| EBITDA |
21.1 |
12.7 |
| Operating profit (loss) |
(0.4) |
(4.3) |
| Net profit (loss) |
6.6 |
(8.5) |
During the period, PNE was able to commission three facilities and thus expand its portfolio of internally operated wind farms to 283 MW. The group’s goal is to reach 500 MW by the end of 2023.
The pipeline of wind and solar projects, on the other hand, grew by 4,984 MW to 11,430 MW.
“At present, it should be taken into account that the interventions planned by the EU Commission and the German government to skim off "windfall profits" have not yet been defined. Based on the results in the first nine months of 2022, we confirm our target for the full year: we expect Group EBITDA of EUR 20 million-30 million in respect of our guidance for the 2022 fiscal year," CEO Lesser stated.
PNE’s single largest shareholder is Morgan Stanley (NYSE:MS) with a stake of nearly 40%. The investment bank said last month that it plans to launch preliminary talks on the sale of its entire interest in the company.
(EUR 1 = USD 1.004)
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Wind turbine. Source: PNE AG.
