While waiting for its offshore projects to bear fruit, PNE Wind AG, a German wind power developer, posted lower revenues in the first six months of this year after a decline in onshore projects cut first- half sales and profits.
Sales dropped to 16.6 million euros ($23.6 million) in the first half of this year from 41.1 million euros a year earlier after the Cuxhaven-based company built fewer wind farms on land.
“The drop in comparison to the previous year’s period is the result of the planned lower number of onshore wind farms realised,” PNE Wind said in a statement.
Its share prices followed in Frankfurt trading, falling 12.8 euro cents to 1.525 euros on August 8, the lowest close since January. As of 12:38 pm, it stock prices dipped even further at 1.48 euros a piece.
Earnings before interest and tax fell to 950,000 euros from 8.2 million euros a year earlier. EBIT in fiscal 2011 to 2013 is expected to “grow to a cumulative value of at least 60 million euros to 72 million euros,” the company said.
Part of its optimism is from new found opportunities to expand its offshore business in Germany in lieu of the planned shut down of nuclear power plants in the country.
Chancellor Angela Merkel’s administration in June decided to shut down all of its 17 nuclear plants by 2022 at the latest starting last month.
Martin Billhardt, chairman of the board of directors of PNE Wind, calls German’s decision to bring down nuclear a «big break» for renewable energy.
It now plans, among other renewable energy sources, to install 10 gigawatts of wind turbines at sea by the end of the decade and 25 GW by 2030.
As of June 30, PNE Wind’s offshore division was working on six of its own wind farm projects at different phases of project development all to be found in the North Sea. It is also acting as a service provider at Borkum Riffgrund 1 and 2, which it sold to Dong Energy Power A/S for 6.7 million euros in 2009.
Among the company’s wind farms, PNE Wind’s 252-megawatt Gode Wind II has received most attention from investors. Scheduled to be built next year, the company already received 10 written expressions of interest from European banks to finance the wind farm, offering 50 million euros to 100 million euros each, according to its financial report.
“We expect to see significant progress in the coming years, especially in the offshore wind energy sector. We are therefore convinced that, with our six own wind farm projects in the North Sea PNE WIND is well positioned for further company growth,” he added.
According to the Global Wind Energy Council, offshore wind energy developers in Germany with projects that can start operation before the end of 2015 receive 15 euro cents per kilowatt hours for 12 years, and then the amount will decrease to 3.5 euro cents/kWh after said period.
Offshore tariffs will annually decrease by 5 percent for new installations starting in 2015. The tariff contract could also be extended if the offshore site is located in deep waters and at a large distance from the coast.
In addition, a new credit program from the German development bank is currently available to support a total of ten offshore wind farms with 5 billion euros.
In comparison, onshore wind farms receive 9.2 euro cents/kWh from the current tariff system. The amount will annually decrease by 1 percent for new installations.
Germany is the top wind energy producer in Europe, with 27,214 MW of capacity, of which 180.3 MW came from installed offshore, as of 2010, records from GWEC showed. Wind energy delivers about 25 percent of German electricity consumption.
