DGAP-News: ABO Wind AG confirms profit forecast for 2021

ABO Wind confirms profit forecast for 2021

- Project developer is on track despite price increases and delays

- Board expects slight further profit improvements for 2022

- Goals of the new German coalition strengthen the expectation of a significant increase by 2024

The effects of delivery delays and price increases from suppliers have not left ABO Wind unscathed. Nevertheless, the Managing Board of the internationally successful project developer for renewable energies is confident that the company will meet its profit forecast for the current year. "Provided we do not experience any negative surprises in the next four weeks, our annual result in 2021 should be slightly above that of 2020," says Managing Director Dr Jochen Ahn. In the previous year, the annual net profit was 13.1 million euros.

According to current planning, the company again expects a slight profit improvement for 2022. This includes effects from price increases for solar modules and wind turbines. The price jumps, some of which are significant, put pressure on the profit margins of individual projects for which ABO Wind had secured tariffs in tenders in previous years. "This will be offset in the long term by the results of future tariff tenders and Power Purchase Agreements," says Dr Ahn. Bottlenecks in production and logistics have lengthened the cycles of wind energy projects in particular, so that successes are reflected in the business figures later.

ABO Wind therefore stands by the repeatedly expressed expectation of increasing annual surpluses to a level of at least 20 million euros on average by 2024. The goals formulated in the coalition agreement of the new German government support this expectation. SPD, Greens and FDP plan for at least 80 percent of Germany's electricity demand to be covered by renewable sources by 2030. A significant increase in electricity consumption is to be expected especially due to the rising share of electric mobility and digitalisation. "Our work will be needed even more than before in the next few years in Germany, as in many other countries," says Dr Ahn. The development of wind farms, solar parks and battery storage systems until they are ready for construction as well as their installation are seen as the key to making the energy transition a success. This means that ABO Wind's core business area is in demand more than ever. "Companies like us will be allowed to connect many more wind and solar parks to the grid in Germany in the next few years in order to meet the requirements of climate protection." The Managing Board is convinced of this.