Renewables developer PNE has warned that it will miss its earnings forecasts for 2018 after it wrote down the value by almost €11m of three offshore wind projects put into doubt by new German planning regulations.
The Cuxhaven-headquartered (pictured) company said it now expected earnings before interest, tax, depreciation and amortisation for the 2018 financial year to be around €16.5m, below its previous guidance range of €20m-to-€26m.
The downgrade came after the company cut the values of its Jules Verne, Nautilus and Nemo offshore developments in the German North Sea by a combined value of €10.8m.
It said the write-downs were prompted by Germany’s new Land Development Plan, last discussed by government on 31 January.
According to PNE, the development plan outlined areas in so-called zone three that could accommodate extra offshore wind farms, but excluded zone four.
PNE’s Atlantis 2 and Atlantis 3 projects are in zone three, but Jules Verne, Nautilus and Nemo are all in zone four.
“Therefore, the realisation of the offshore projects Jules Verne, Nautilus and Nemo has become less likely based on the current regulatory undertakings,” the company said.
PNE has filed a damages claim to recoup the full €10.8m in valuation losses, which the company said it expects to win.
However, the sum would be recognised only after a valid final decision, it added.
PNE’s strategy for the offshore wind market involves preparing projects through the permitting phase and then on-selling them to other developers.