PNE (PNE3) Q3 2024 earnings summary

Executive summary

• Achieved strong operational progress across all business segments, with 61.3 MW of wind projects put in operation and the IPP portfolio expanded to 412 MW in operation and 274 MW under construction.

• Project pipeline increased to 17.8 GW, even after the sale of the US business and major project sales in South Africa, Canada, Germany, and the UK.

• Power generation output grew 15% year-over-year to 485 GWh, but was impacted by low wind yields and lower power prices.

• Service business order book increased to 2,980 MW in O&M, supporting stable earnings and climate goals.

• New CEO Heiko Wuttke to take office in January 2025, bringing extensive industry experience.

Financial highlights

• Total output rose 34% year-over-year to €210.9 million, the highest nine-month figure in company history.

• EBITDA decreased by 62% to €6.2 million, but adjusted EBITDA (including hidden reserves) was stable at €33.3 million.

• Net income was negatively impacted by IFRS-related revaluation of interest rate swaps and KfW loan liabilities, resulting in a net loss of €49.1 million.

• Cash position remained strong at €102.3 million, up from €90.4 million at year-end 2023.

• Hidden reserves in the IPP portfolio increased to €277.7 million from €185.7 million last year.

Outlook and guidance

• Full-year 2024 group EBITDA guidance confirmed at €40–50 million, with expectations of a strong Q4 driven by project sales and milestone payments.

• Papenrode wind farm sale in Q4 anticipated to significantly improve 2024 KPIs.

• Medium-term targets include expanding the operating portfolio to 1,500 MW/MWp and increasing Group EBITDA to over €150 million.

• Continued focus on core markets and capital allocation to projects with strong return expectations.