ABO Wind exceeds profit expectations for 2016

(Wiesbaden, April 18th, 2017) The ABO Wind managing board had expected a very good result for 2016. The actual preliminary results have proven to be even better. The group has generated a net profit of 16.5 million euros (2015: 7.8 million euros). In December 2016, ABO Wind raised its forecast of the year's surplus to "more than ten million euros." The turnover (122 million euros) and overall performance (turnover plus inventory change = 145 million euros) also rose significantly compared to 2015. After supervisory board approval, the complete annual report will be published on the website on May 12th.

One factor contributing to the success has been the economy of scales of large wind farm construction in Germany. Low costs, especially for the construction of infrastructure (cable routes and roads), increased the projects’ profitability. ABO Wind’s engagement in Argentina has also had a positive effect. Although it had been impossible to find investors for Argentinian in the past few years, ABO Wind sold a total of six project last year. Tenders initiated by the government caused a sudden increase in demand for wind farms ready for construction. ABO Wind was able to meet the demand and has profited directly from the country’s changes in energy policy. Most buyers were Argentinian energy suppliers who then participated in tenders with the large projects initiated and developed by ABO Wind (50 to 100 megawatts each).

"We are happy to exceed the high expectations of our annual result," said managing director Dr Jochen Ahn. This is above all thanks to our employees, who are working very hard to make the best of every project. Favourable market conditions have been another factor. Low interest rates and investors’ declining yield expectations have increased the prices for wind farms in recent years and thus have also increased the project developer’s margin. "At the same time, we are succeeding in keeping costs low," emphasises Dr Ahn. Due to the favourable cost conditions, ABO Wind is well prepared for Germany’s new tariff competition. In May, the feed-in tariff for new wind farms will be determined by tenders for the first time.

According to the provisional figures, the year’s surplus of 19.1 million euros of the individual company ABO Wind AG is even higher than that of the group. One reason for this is a distribution of 3.3 million euros from ABO Wind S.A.R.L. The French subsidiary had achieved a particularly good result in 2015, which is now affecting the parent company's balance sheet with a one-year delay.

Stock analyst Dr Karsten von Blumenthal (First Berlin) published an assessment of ABO Wind for the first time last week and issued a purchase recommendation. He set the target price at 14 euros. The analysis is available in German on the ABO Wind website. The analysis was published without knowledge of the preliminary business figures.


Alexander Koffka

Alexander Koffka

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