PNE to miss earnings guidance for 2018 due to valuation adjustments

German renewable projects developer PNE (ETR:PNE3) today announced it will miss its full-year earnings forecast because of valuation adjustments on some offshore projects involved in a constitutional complaint.

PNE said in a statement that based on preliminary figures it will report group earnings before interest, tax, depreciation and amortisation (EBITDA) of about EUR 16.5 million (USD 18.5m) compared to its previously guided range of EUR 20 million-26 million, and EBIT of some EUR 7.8 million instead of a figure between EUR 10 million and EUR 16 million.

The company has made stock value adjustments in an amount of about EUR 10.8 million in total on the Jules Verne, Nautilus and Nemo offshore wind projects in Zone 4 of Germany's exclusive economic zone. It explained that the realisation of those projects has become less likely based on current regulatory undertakings in Germany and noted that a damage claim in the above-mentioned amount would be recognised in profit or loss after a valid final decision at the earliest.

Excluding the non-cash special effect, PNE has exceeded the upper region of its forecasts by recording EBITDA of EUR 27.2 million and EBIT of around EUR 18.5 million.

(EUR 1.0 = USD 1.124)

Choose your newsletter by Renewables Now. Join for free!