DGAP-News: ABO Wind AG: new record set with annual result

ABO Wind sets new record with annual result

- Net profit of ABO Wind group rises to EUR 17 million

- Shareholders receive dividend of EUR 0.40 per share

- Increased internationalisation is reflected in the result

- Equity rises to EUR 80 million

The ABO Wind group has generated a net profit of EUR 17 million in the financial year of 2017. The result surpasses the previous record year of 2016 with a net profit of EUR 16.5 million. Turnover has increased to EUR 147 million (2016: EUR 122 million). The company's shareholders may participate in the success with a dividend of EUR 0.40 per share. This will be proposed by the Managing Board and Supervisory Board during the annual general meeting on August 9^th. The dividend will be distributed the day after.

For the first time, more than half of the net profit comes from international markets

"In 2017, we have generated more than half of our net profit in international markets for the first time," says Managing Director Dr Jochen Ahn. "Business in Germany has also been going well." In addition to activities in the domestic market, successful business in Finland, France, Spain, Northern Ireland, and the Republic of Ireland have contributed to the extraordinary result. By driving forward international business development, ABO Wind manages to balance out the mostly policy-based fluctuations in Germany. ABO Wind has been maintaining its strong position in the German market. At the same time, the company utilises its competence as an experienced specialist for renewable energies in a growing number of countries, in order to establish a climate-friendly energy supply.

166 megawatts of renewably energy has been commissioned by ABO Wind in 2017, more than ever before. Additionally, ABO Wind has sold wind farms ready for building with a capacity of 85 megawatts in Spain and Northern Ireland. The Czech utility ČEZ has purchased French wind farms currently in development with a capacity of roughly 100 megawats from ABO Wind in 2017. ABO Wind was tasked with completing the projects' approval processes and to bring them online.

In 2018, 20 megawatts have been commissioned to date. Additional projects, among them 11 megawatts in the Republic of Ireland, are currently under construction. In the German tenders, ABO Wind has already secured a tariff for three projects in 2018.

ABO Wind works on wind and solar projects in 16 countries on five continents

At the moment, ABO Wind is developing renewable energy projects in 16 countries on five continents. The company has also added solar energy to its activities due to the sharp decline in cost for solar technology. By now ABO Wind is working on wind and solar projects in most countries. Exceptions are Finland and Ireland, where solar radiation is relatively low. Activities complementing the main business have been playing a larger role. ABO Wind is continuously expanded its wind farm management, for example. New services up to full maintenance complement the technical and commercial operational management, which are already well established in the market. ABO Wind also offers products such as an electronic access control for wind turbines. For an eco-friendly energy supply of remote regions without grid-connection, ABO Wind develops reliable systems combining solar, wind and storage technology, depending on the regional circumstances.

Thanks to the good annual results of recent years, the company's equity has increased continually. On the effective date of December 31^st, 2017, EUR 80 million are on the balance sheet. This is a good foundation for further growth of the company. The equity rate is a solid 46 per cent. Furthermore, the company has mezzanine capital of EUR 15 million at its disposal. Managing Director Dr Jochen Ahn expects and additional strengthening by means of a convertible bond currently being issued. ABO Wind offers bonds with a volume of EUR 15 million. Although the bond is sold without the help of a bank, more than a third has already been sold. The bond has a term of two years with a yearly interest rate of 3 per cent. The company's goal is that a large share of buyers will convert the bond, which will be an attractive option if the stock price develops positively.

Positive outlook for further successful years

For the next few years, ABO Wind expects activities in new countries to bear fruit. A growing pipeline of wind and solar projects in development is the foundation for further successful years in the future. 500 employees are working on wind and solar farms with a capacity of more the 4,000 megawatts worldwide. The net profits gained in 2016 and 2017 with more than EUR 10 million each for the first time, should become the rule, the Managing Board expects. The record level of the two most recent results will probably not be reached every year, however.