PNE Wind Falls on Lower Onshore Revenue as Focus Shifts to Sea

PNE Wind AG (PNE3), a German wind-power developer, fell to the lowest price in almost seven months in Frankfurt trading after a decline in onshore projects cut first- half sales.

PNE Wind slumped 12.8 euro cents, or 7.7 percent, to 1.525 euros as of 5:30 p.m. local time, the lowest close since Jan. 12. The shares lost 16 percent last week.

Sales dropped to 16.6 million euros ($23.6 million) in the first half from 41.1 million euros a year earlier after PNE Wind built fewer wind farms on land as it plans a larger offshore business, the Cuxhaven-based company said today in a website statement.

The developer has shifted its focus to offshore projects amid a drive by Chancellor Angela Merkel’s government to install 10,000 megawatts of wind turbines at sea by the end of the decade, pre-empting a power gap as the country phases out nuclear generation by 2022.

The slump in sales can be attributed to the timing of projects, according to Rainer Heinsohn, a company spokesman.

“Revenues depend on projects, and if we have projects early in the year, we have earnings early in the year,” Heinsohn said today by telephone. The company is focusing on its 252-megawatt Gode Wind II venture under development in the North Sea, Heinsohn said.

PNE Wind plans to start building Gode Wind II, which will have 84 turbines from Vestas Wind Systems A/S, next year. The company has received 10 written expressions of interest from European banks to finance the wind farm, with contributions of 50 million euros to 100 million euros each, according to its financial report published today. PNE Wind expects to complete funding negotiations “soon,” the company said.

Earnings before interest and tax fell to 950,000 euros in the first half from 8.2 million euros a year earlier. Ebit in fiscal 2011 to 2013 will “grow to a cumulative value of at least 60 million euros to 72 million euros,” PNE Wind said.

To contact the reporter responsible for this story: Sally Bakewell in London at Sbakewell1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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