Dear ladies and gentlemen, welcome to today's conference call of PNE AG. At our customers' request, this conference will be recorded. As a reminder, all participants will be in a listen-only mode. After the presentation, there will be an opportunity to ask questions. If any participant has difficulties hearing the conference, please press the star key, followed by zero on your telephone for operator assistance. May I now hand you over to Markus Lesser, CEO, who will lead you through this conference. Please go ahead.
Good morning, everyone, also from my side. Thank you for joining us today in this conference call on the Results of the First Half 2021. Before I start with the presentation, I would like to share with you an outline of the presentation and the procedures of today's call. As usual, I will start with an overview of the operational and strategic highlights of the first half 2021. After that, I will comment on our financial figures. I will conclude my presentation with our outlook for the remainder of the year. As always, we will then open the line for the sell-side analysts only. All other participants will stay in listen-only mode, as it is our company's procedure for years. As usual, our slides that I will use can be found on our investor relations website. Having said this, I would like to draw your attention to slide three.
In operational terms, we had a dynamic first half year in 2021 fiscal year, despite the still difficult general conditions caused by the COVID-19 pandemic. The operating performance in H1 was highlighted by project sales of 294 MW in Sweden, Romania, and France. In total, we have 620.1 MW sold, put into operation or under construction at the end of H1. What is remarkable is that we could increase our wind and PV pipelines by above 1 GW year-over-year, despite the project sales. Regarding the expansion of our own generation portfolio, we were able to complete two wind farms with around 17 MW and increase our portfolio to 151.6 MW. In addition, seven wind farms with a nominal output of approximately 120 MW were under construction in Germany at the end of the first half.
This is extraordinary and the first time, if you look to the 128 MW we are having under construction in Germany and the 59 MW in Poland, this is a huge amount. The first time that we have so much projects under construction. Looking at the financials, we have achieved strong results driven by the project sales. I want to highlight the extraordinarily high level of total output of EUR 93.9 million, which is an increase of 21.9% year-over-year looked at. EBITDA improved even stronger by 47.1% to EUR 13.3 million. I also want to highlight that these results were achieved despite significant investments in our own generation portfolio, and we have to consider the weak weather conditions that burned our power generation. Thus, we can confirm our guidance for the full year 2021. On segment level, the project development and service segments showed strong growth before consolidation compared to last year.
Power generation was burdened by very weak wind yields and some downtime of our Silbitz power plant, which was a regular downtime planned due to maintenance. We have still a high cash position. It remains on the high level at EUR 116.9 million. The equity remains stable at EUR 197.8 million. Looking to the expansion of our generation portfolio, further 128 MW under construction. This, together with this 150.6 MW, shows that we increase our portfolio in a very strong way. We have to consider that the hidden reserves in the portfolio are now more than EUR 100 million in total. Looking to this, together with the equity, I think this gives a very good overview about the strength of our company. We look to the project pipeline. We have more than 1.1 GW in the permitting phase. The total pipeline grows to above 500 MW.
Despite the project sales we had with the big projects of Jasna and Målarberget, we are on the highest level of projects in permitting phase in our core market, Germany and France, with 773 MW, despite this 120 MW we have already under construction. The German pipeline increased by around 200 MW, and we could finalize some constructions and projects, construction of Project Erfurt Ost, Project Langstedt and Lentföhrden completed. We could start the construction of 30.4 MW, and remarkable is that we got another 54.9 MW new permitted projects in the last two weeks, which now will be part of the next tender in September. In Sweden, the construction management of Målarberget, 130 MW was completed. The construction and the sale of Wind Farm Hultema could be finalized. In Poland, the projects of Krzecin and Kuślin are now ongoing.
In France, we could sell a 13.8 MW project, we could finalize the sale. In France, two projects in total of around 70 MW got permitted, and in Romania, 220 MW were sold. You see a lot of action in our company in sales and construction, which is shown by these numbers. We have a rapid growth of PV projects, so also we could add additional France, Canada, and Poland with 90 MW peak. In total, our pipeline increased by more than 500 MW to 794 MW peak, which shows our strong willing to increase our pipeline and to get PV in the market established where we are already in, because there we see a lot of synergy effects, which is shown now through the strong increase of our pipeline.
We look to the H1 results, 29% increase of the total output, which shows that we do a lot of, even if we do it internally, the sales is not the number we are looking at due to the fact that we build up so heavily our internal portfolio. It's more the total output which shows the strength of our work and our success. We can see that the EBITDA is up by 47.1%. If you summarize it, project sales in Sweden, Romania, France, internal sales related to the build-up of own power generation portfolio, milestone payments for projects which had been already sold, and the project development and general contractor services, as well as the results for the power generation services, and the expansion of our own power generation portfolio are valued in these numbers.
One additional point, the financial results have been positively impacted by the valuation of interest rate swaps plus EUR 3.5 million. You remember a long time we had to change this swaps and consider the swaps in a negative way. Now we have it in a positive way due to the fact that the interest rates are increasing. Remarkable are the numbers if you look to the segments each. The project development output increases to EUR 90.86 million, which is + 46% in relation to last year. The EBITDA increased by 260% to EUR 22.8 million. Services grows by + 15%. The EBITDA + 105%. This shows that the action we have taken to become internationally and to increase our service business also can be seen in the numbers. Not very good point was that the wind yields have been very weak this wintertime, especially.
In January, we had been very low at wind yields, which affected the power generation output. It decreases to EUR 11.6 million, - 10%. As well as Silbitz had a maintenance downtime, which was regular maintenance downtime. This leads to an EBITDA - 20% in relation to last year. This is usually if the wind yield is weak on one hand, it will be higher on the other hand. At the end, our prognoses are always related to an average value. While the costs are all the time running in the same manner, linear through the year. The balance sheet is solid. We had an increase in the balance sheet due to the fact that we got more projects in our portfolio. Now we are at EUR 731 million, total amount in opposite to EUR 663.8 million in last year. The liquidity is still high on a EUR 116.9 million.
The equity, again, the equity is at EUR 197 million. The hidden reserve is EUR 100 million on it. To give this point again, shows really the financial strength. Equity ratio is solid at 27.1%. Due to the change in the increase of the balance sheets, our equity ratio goes down, but we are still on the same level in terms of the equity for itself. The net current debt liabilities to banks showed this is increasing, mainly project financing, non-recourse project financing, and the liabilities from leasing contracts due to the fact that we got more projects in our own ownership. It's clear that according to IFRS, we have to bring the leasing contracts into consideration, and this is increasing due to the fact that we have a lot of land lease contracts.
The current liabilities to banks, EUR 29.3 million non-recourse, again, and the liabilities from leasing contracts at EUR 6.4 million. Scale-up is ongoing, we can see a lot of increase of efficiency due to the measurements we did in the past. We are working on expansion of our own generation portfolio. We want to add further new product services, which we do now. We want to have hybrid project power plants in our range of that what we would like to offer to the market or what we would take on board. This depends on, and there we are in a good shape, but we will see when we get the first projects on board. We want to go in the next market. We look for further projects and what you can see in an increasing project development pipeline.
2023, we want to finalize or want to have 500 MW on board in our own ownership of projects which have been constructed or will be under construction. What are the targets for the next time? First of all, think about this 128 MW which are under construction for our own generation portfolio. Secondly, we think that we can add some repowering projects maybe on board, which are prepared for repowering. Additionally, we can add 54.9 MW, where we got already the building permits. You see, we are in a good shape to reach our target of 500 MW in 2023. We have 259 MW under construction, which we would like to finalize. The regulatory environment is starting to begin better.
We see a lot of sensitivity in the politics to improve the targets, but also to improve the regulation so that permissions can be done in a faster and better way. Especially in Germany, we have a very good outlook. We have a good pipeline, which is growing. We have, especially on the core market, Germany and France, 773 MW in the permitting phase, which is, this total amount, extraordinary. We have the sale of different projects in the United States, Poland and Panama, which we would target. We already sold last week, South Africa, 140 MW, Haga Haga project, where we got a small first payment, but the main payment is related to the tender success and if it is going to be built. We furthermore want to improve our organization and everything what has to do with processes, to improve our effectiveness.
Altogether, we can confirm our guidance for fiscal year 2021 with an EBITDA of EUR 24 million-EUR 32 million. We are very positive that we can reach this. Thank you very much. I'm prepared now for questions.
Thank you. We'll now begin our question and answer session. If you have a question for our speakers, please dial zero one on your telephone keypad. Now to enter the queue. Once your name has been announced, you can ask a question. If you find your question is answered before it's your turn to speak, you can dial zero two to cancel your question. If you are using speaker equipment today, please lift the handset before making your selection. One moment please for the first question. Our first question comes from Jan Bauer, Warburg Research. Please go ahead. Your line is now open.
Hi there. Good morning. Thank you for the presentation. I only have two minor questions. Can you give us a little bit more light about the parks in Germany who are currently under construction? You said it's 128 MW. When I run through my notes, I only can find some 84 MW. Also a little bit of light regarding the expected COD of those parks. I would expect a few of them could be finished by the end of the year, and another few by the first half of the next year. Thank you.
Yeah. To the 128 MW, there are seven projects. Two projects, we could get through the tender with 30.6 MW. If you look to your numbers, you have to add them from the last call. We are all together at 128 MW. One project with round about 20 MW, 24 MW, we have a delay to expect due to issues around the permission phase. All others we expect to get finalized until mid of next year.
Okay, perfect. The second question would be about the French pipeline. Just from my feeling, you already sold one project. You have several permissions granted for France. Is this market finally picking up as expected? Can you see there are any developments regarding the permitting phases, or is it still very difficult for onshore wind?
This in France, you have always the situation, if you have your permission, you have to expect usually a procedure that somebody filed a lawsuit against this permission. Usually, you have to expect two years to add until you can be ready to build or you can build. Just right now, we have two projects, one with 11.7 MW and one with 6 MW, where we got the permission, or we have the permission available. We think that the start of the construction will be, I would say, end of this year for one project and end of next year with the next project.
Okay. Those are the projects you already sold, or are those additional projects?
No, these are additional projects.
Okay. What's your expectation, are those projects up for sale, or will you probably add those ones also to your in-house portfolio?
At the moment, it is planned to sell them. We always consider on regular basis if we would held them or not. France is one market where we can think about to held them, but it is not already decided.
Okay. Perfect. Thank you very much.
Our next question comes from Karsten von Blumenthal, First Berlin Equity Research. Please go ahead. Your line is now open.
Good morning, Markus. A question regarding turbine delivery time and pricing. Has this changed in Q2? What kind of development are you observing there?
Good morning, Karsten. We see that right now, the development in longer delivery times. I have mentioned this point on the last call, from 15 to 18 months, and we see that there is a pressure on prices, which are partly taken away from us in this respect, that we think that the next generation of machines always are more efficient. Therefore, we think that the prices will affect us not that much. Secondly, we think about this is usual that then tender prices will increase. We don't see that this will affect us so much. Nevertheless, we will see just right now, we see the price pressure from the wind market.
Okay, thanks for that. When we look into the wholesale power price, this has been around EUR 70 per MWh, so much, much higher than last year during the crisis. Do you think this could already be a level where PPAs for onshore wind in Germany become an option? So far, we have only seen solar PPAs in Germany, but with a higher wholesale price level, it may start to be interesting also for onshore wind. I would like to know what your opinion is there.
Yeah. There is a real support for our strategy to wind into PV, you mentioned this, because a lot of PV areas or sizes, it is up to 20 MW you can achieve for a tender in EEG. Above that, you have to go for PPAs. The pressure is higher than the goal for PPAs. This gives us much more security for our pipeline in Germany, because then, so slowly, steadily, at a special amount, some companies will think about how to hedge their energy prices due to the fact that this increase is going to be stable also in the future. Secondly, all projects which are not anymore in a 20 years EEG frame, will be supported through this. Yeah. This is a good situation in some respect as well.
All right. You have again increased your PV project pipeline and now almost 800 MW. Have you got an idea when and where you will build your first PV project?
Yeah. Next year, we want to start the construction of the first order sale. It depends. We just right now look which of these projects will come first, and depending on our strategy, which we will budget now in the autumn, we will see if we can take it on board or if we sell it.
Correct. Thank you very much for taking my questions.
Thank you.
Our next question comes from Holger Steffen, SMC Research. Please go ahead. Your line is now open.
Good morning, everybody. Mr. Lesser, at the moment, you build several wind farms in Germany and Poland. Regarding this, I've expected a higher change in inventories in the second quarter. Why was this figure much lower than in the first three months?
This is due to the fact that the projects we could finalize in the second quarter, 17 MW is one issue. They had to go out of the inventories. We have to consider that the delivery times of wind turbines are longer. This depends on when we order and which payment we have to do, and when they get in our inventory as an order.
Oh, okay. I see. In the first half, revenues were still relatively low. I think your revenues in the second half will be strong, determined by a possible sale of the two new projects in Poland after completion. How probable is it that we will see the complete project cost and at the same time, high revenues in your profit and loss statement?
The probability is very high.
Okay. We will see much higher revenue.
We expect really in the next couple of two months to get the sale finalized of Poland and therefore, that we get the revenues and also the results and that we can see it in our balance sheet.
Yes. We will see much higher revenues there because you have built these projects already then.
Exactly.
If we take a look at the data of Germany of the first half, you've made great progress in the further development of the German onshore pipeline. Maybe you could give us an outlook about the next quarters. Will you maintain this high speed?
Yeah, as you see just right now, take into consideration that 128 MW we have under construction. We made first payment. We have to make further payments, as you said already, for wind turbines. On the other hand, we see that we can start this year, with a further 55 MW roundabout. We see the next step of projects which are upcoming. Therefore, this is the outlook in this respect. Additionally, the project sales, we try to get it done in the United States and in Panama. It's more difficult, certainly in the moment. Nevertheless, the milestones for the other projects are related mainly to start of construction in Romania and South Africa, more in two years to expect, not in the short run.
Okay. I think for the next quarters, we will see high speed in Germany, maybe until the year of the end.
Exactly
In the speed of the first six months or not?
Yeah. It will be in the same amount. Yes. We will have this speed ongoing and on the other hand, we have again, the situation that we have to, as I said, the 55 MW we want to put into the construction. We will see if further projects will be permitted. In September, we will go into the tender with the 55 MW, and then I think in this year, we can start with the construction.
Okay. Thank you very much. My last question, you've mentioned the sold project in South Africa and that you will get further payments if you are successful in the next tender.
Yes.
When will this tender take place?
The tender will take place, I think, in the next month. In September, yes.
Oh, okay. Thank you.
Sorry, with results next year, yes.
Oh, okay. Yeah.
Sorry. I should add.
Okay. Thank you very much.
Thank you.
Our next question comes from Peter Rothenaicher, Baader Bank. Please go ahead. Your line is now open.
Yes. Hello, Mr. Lesser.
Hello.
I have a question on your project sales in the second quarter. Perhaps, can you comment a little bit, how was the outcome of these project sales in Romania and France? Were you able to realize the amounts and the profits which you initially expected and how do you consider now the Romanian market? Will you go out of that market, or do you think there's potential and also profitable business in Romania as well in the future?
First of all, we sold Hultema Sweden. We have agreed not to disclose the purchase price. I can say a middle million EUR area, it will be for the sales. We have the sale of Nanteuil France. This year it will be a result in total of EUR 5 million-EUR 6 million, in the middle of one-digit million. It depends on some point. The turnover will be a lower EUR 1 million . In Romania, we got a first payment of around EUR 4.4 million. We sold 100% of the shares. We can get a low double-digit million EUR amount in total when the project of 221 MW, where we also do the development on their payment, which will be done, maybe come up in the next two to three years.
We think Romania has just right now a special situation. Opposite to the recent years, we see investor interest, which becomes higher and higher. Therefore, we are working, as you can see in the PV pipeline, we are working on a rapid growth of the PV pipeline, and we would like to sell one project this year. This is our target, which we now think we can say is realistic due to the fact that the investor interest is increasing. We will stick in any way in Romania due to the fact that this interest is high and we have the access to the areas. We increase, especially our PV activities.
The project sales which you're targeting in South Africa, are here earnings prospects favorable as well, or is this more difficult?
Yeah. This is a situation where we, as I said, we got a very low payment of several EUR 100,000 . The issue is that we want to get the milestone payment achieved, which are related to the tender success, first of all, and later on to the build and starting of construction of the project. We are talking about around midsize, between midsize and higher level of EUR 1 million as a turnover.
Okay. Thank you.
As a reminder, if you would like to ask a question, please press zero one on your telephone keypad. We have not received further questions. I will hand back to the speaker.
Thank you very much for your interest. I wish you a good day, and see you the next time. Bye.
Ladies and gentlemen, thank you for your attendance. This conference has been concluded. You may disconnect.