The wind farm project developer, PNE WIND AG (ISIN: DE000A0JBPG2), has published its results for the first half of 2012. The reporting period was characterised by ntensive onshore and offshore project development activity which required advance payments and investments in projects whose realisation will lead to future sales and earnings. Providing further evidence to the strength of the business model, PNE WIND AG was able to report the largest transaction in the company's history as well as for any German offshore wind project developer on 14 August 2012. The sales transaction took place after the end of first half of the year and its positive effects will first be evident in the third quarter and beyond. The sale of the "Gode Wind" projects has a total deal value of euro 157 million plus service related revenues of up to euro 8.5 million. PNE WIND AG has already received euro 57 million in payments and now has a clear view on the timing of future milestone payments totalling euro 100 million. With this transaction, management reconfirms the company's cumulative EBIT guidance of euro 60 to 72 million for 2011 to 2013.
Advanced payments are an intrinsic part of the business model of PNE WIND AG and a variety of costs are incurred over the course of several years of planning and development. Not until the project rights or wind farms are sold does our company have the ability to convert our development costs into the revenues, which in some cases can represent very significant volumes. These investments in future sales are reflected in our half yearly results. PNE WIND AG realised a turnover amounting to euro 12.3 million in the first six months of 2012 (previous year: euro 19.9 million) and an earnings before interest and tax (EBIT) of euro -6.3 million (previous year: euro 0.9 million). At the end of the June 2012, the company had assets in association to the "Gode Wind" projects of euro 43.5 million, which were reclassified as "Asset held for sale".
Despite a decline in equity – caused primarily by the negative net income and dividend payments – the equity ratio remained at a high level of around 38.6 percent (31 December 2011: around 38.8 percent).
CEO Martin Billhardt comments, "The Gode Wind deal marks the most important business transaction in PNE WIND AG's history. The deal solidifies our financial base and the funds provide resources for further project development and a perspective to pay dividends to our shareholders. We therefore reconfirm our EBIT guidance of cumulated euro 60 to 72 million for the fiscal years 2011 to 2013."