Dear ladies and gentlemen, welcome to the conference call of PNE AG. At our customer's 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. May I now hand you over to Markus Lesser, CEO, who will introduce you for 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 twenty twenty one. 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 After your operational and strategic highlights of the first half twenty twenty one. 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 handlers only. All other participants will stay in listen only mode As it is our company's procedures for years. As usual, our slides that I will use can be found on our Investor Relations We have said this, I would like to draw your attention to Slide 3. In operational terms, we had a dynamic first half year in twenty twenty one fiscal year.
Despite the still difficult General conditions caused by the COVID-nineteen pandemic. The operating performance in H1 was Still highlighted by project sales of 2 94 Megawatts in Sweden, Romania and France. In total, we have 621 620.1 Megawatts sold put in 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 gigawatt Year over year, despite the project sales. Regarding the expansion Of our own generation portfolio, we were able to complete 2 wind farms with around 17 megawatts And increase our portfolio to 151.6 Megawatts. In addition, 7 wind farms with a nominal outgrowth of approximately 120 megawatts 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 megawatts we are having under construction in Germany and 59 Megawatts 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, strong results driven by the Projects by the project sales, I want to highlight the extraordinary high level of total output of SEK 93,900,000, Which is an increase of 21.9 percent EBITDA improved even stronger by 47.1 percent to 30,300,000. 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 burned by very weak wind yields and some downtime of our Silbit power plant, which was a regular downtime, planned to Due to maintenance, we have still a high cash position, remains on the high level at 116.9 €1,000,000 The equity remains stable at €197,800,000 Looking to the expansion of our generation portfolio, further 128 megawatts under construction. This, together with this 150.6 megawatts, shows that we increased our portfolio In a very strong way. We have to consider that the hidden reserves in the portfolio are now More than €100,000,000 in total. Looking to this, together And with the equity, I think this gives a very good overview about the strength of our company.
If you look to the project pipeline, we have more than 1.1 gigawatt in the permitting phase. The total pipeline grows to About 500 Megawatts, despite the project sales we had with the big projects of Jasnah and Malabakhet. We are on the highest level of projects in permitting phase in our core market, Germany and France, with 73 Megawatts. Despite this 120 megawatts, we have already under construction. So the German pipeline increased By 200 megawatts around 200 megawatts and we could finalize some constructions and projects, construction of Project Erfurt Ost, Projects Langstate and Landfern completed the construction could start the construction of 30 point For Megawatts and remarkable is that we got another 54.9 megawatts new permitted projects In the last 2 weeks, which now will be part of the next tender in September.
In Sweden, the construction management of Mala Baguette, 130 megawatts was completed. The construction and the sale of wind farm Ultima Could be finalized. In Poland, the projects of Zhenchin and Kusslyn They are now ongoing. In France, we could sell 13.8 Megawatt projects. We Finalize the sale in France, 2 projects in total of around 70 megawatts got permitted.
And in Romania, 220 megawatts were sold. So you see a lot of action In our company in sales and construction, which can be shown by these numbers Which is shown by these numbers. We have a rapid growth of PD projects. So also we could add additional France, Canada and Poland with 90 megawatt peak. In total, our pipeline increased By more than 500 megawatts to 7 94 megawatt peak, which shows our Strong willing to increase our pipeline and to get PV In the markets 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.
If you 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, so it's more the total output, which shows the strength of our work and our And we could 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 our own generation portfolio, milestone payments For projects which have 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 on power generation portfolio Shows the value in these numbers. One additional point due to we could the financial results have been positively Affected by the valuation of interest at that plus 3,500,000. You remember a long time day, 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 €90,860,000 which is plus 40 6% and opposite to last year or in relation to last year. The EBITDA increased by 260% to 22,800,000. Services, the services growth by plus 15%, EBITDA, plus 105%. So this shows that the action We have taken to become internationally and to increase our service business are now also can be seen in the numbers.
Not very good point was that the wind yields have been very weak this wintertime especially. So in general, we have been very low at wind yields, which affected the Power generation output decreases to 11,600,000 minus 10%. As well As Cerberus had a maintenance downtime, which was regular maintenance downtime, This leads to an EBITDA minus 20%, in opposite to last year Or in relation to last year. But this is usually if the wind yield is weak on one hand, it will be Hi. On the other hand, at the end, our prognosis 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 731,000,000 Total amount in opposite to €663,800,000 in last year. The liquidity is still high on 116.9 €1,000,000 The equity again, the equity is at €197,000,000 The hidden reserve is €100,000,000 Only to get this point again shows the really the financial strength. Equity ratio is solid at 27.1 percent due to the change in the increase of the balance sheet, our equity ratio Goes down, but we are still on the same level in terms of the equity for itself.
And our current debt liabilities to banks should increase mainly project financing, nonrecourse project Financing and the liabilities from leading contracts due to the fact that we got more projects in our own ownership. It's clear that according 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. Current liabilities to banks, EUR 29,300,000 nonrecourse Again, and the liabilities from the leasing contract at EUR 6,400,000. Scale up is ongoing, and we can see a lot of Increase of efficiency due to the measurement we did in the past. So we are working on expansion Our 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 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. And we look for further projects and what you can see in the increasing project development pipeline. 2023, we want to finalize or want to start want to add 500 megawatts on board in our own Ownership of book projects which had been constructed or will be under construction? Yes.
What is what are the targets for the next time? So First of all, think about this 128 megawatts, 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 Megawatts, where we got already the building permits. So you see, we are in a good shape to reach our target of 500 megawatt in 2023.
We have a 2 59 megawatts under construction we would like to finalize. The regulatory environment is starting to begin better. We see a lot of Sensibility 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. So this Especially in Germany, we have a very good outlook. We have a good pipeline, which is growing.
And so and we have especially on the core markets, Germany and France, 773 megawatts In the permitting phase, which is in this total amount extraordinary. We could we have the sale of different projects in United States, Poland and Panama, which we would target. We already sold Last week, South Africa, 140 Megawatts, Haga Haga project, which 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. And we furthermore want to improve our organization and everything what has to do with processes, with So all together, we can confirm our guidance for fiscal year 2021 With an EBITDA of €24,000,000 to €32,000,000 we are very positive that we can reach this. So thank you very much.
I'm prepared now for questions.
Now to enter the And our first question comes from Jan Bauer, Warburg Research. Please go ahead. Your line is now open.
Hi, Lauren. Good morning. Thank you for the presentation. I only have 2 minor questions. Can you give us a little bit more light about The parks in Germany were currently under construction.
You said it's 128 megawatts. When I run through my notes, I only can find some 84 megawatts. And also a little bit of I'd like regarding the expected COD of those parts. So 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.
Yes. To the 28 megawatts, there are 7 projects. These projects, 2 projects, we could Get through the tender with 30.6 megawatts. If you look to your numbers, you have to add them from the last call. So we are all together at 128 Megawatts.
One project was roundabout 20 megawatts, 24 megawatts, we have a delay to expect due to Issues around the commission phase. All others, we expect to be get finalized until mid of next year.
Okay, perfect. And the second question would be about the French pipeline. So Just from my feeling, so you already sold 1 project, you have several commissions granted for France. So is this market finally Picking up as expected. And can you see there any developments regarding the permitting phases?
Or is it still very difficult for Engellwind?
Yes. In France, you have always the situation if you have your permission, you have to expect usually Procedure that somebody filed a lawsuit against this permission. Usually, you have to expect 2 years to add until you can be ready to build or you can build. So just right now, we have 2 projects, 1 with 11.7 Megawatts and 1 with 6 Megawatts where we got the permission We have the permission available. So and we think that the Start of the construction will be, I would say, end of this year for 1 project And of next year with the next project.
Okay. But those are the projects you already sold or are those additional projects?
No, no. These are additional projects.
Okay. So 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. But if we have We always consider on a regular basis if we would help them or not. So France is one market where Where we can think about to help them, but it is not already decided.
Okay. Okay. Thank you very much.
And our next question comes from Karsten from Blumtal, Firstburn Equity Research. Please go ahead. Your line is now open.
Good morning, Markus. A question regarding turbine delivering time and pricing. Has this changed in Q2? What What kind of development are you observing there?
Yes. Good morning, Carsten. Yes, it is We see that right now the development in longer delivery times. I've mentioned this point on the last call, from 15 to 18 months, And we see that there is a pressure on prices, which will be part which are partly Consider or partly taken away from us in this respect that we I think that the next generation of machines always are more efficient, yes. So therefore, we think that the prices will not It will affect us not that much.
Secondly, we think about this is usual that then tender prices will increase. So we don't see that this will affect us so much. But 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 €70 per megawatt hour, 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. And 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. Yes. I'm there's a real Support for our strategy to win into PV, you mentioned this because the PV a lot of PV areas Our sizes, it's up to 20 megawatts you can achieve for tender and EEG. Above that, you have to go for PPAs. And the pressure is higher than to go 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 prices energy prices Due to the fact that this increase is going to be stable also in the future. So secondly, All projects which are not anymore in a 20 years EEG frame will be supported through this, yes. So and this This is a good situation in some respect as well.
All right. You have again increased your PV project pipeline now almost 800 megawatts. Could you have you got an idea when you When and where you will build your first PV project?
Yes. Next year, we want to start the first construction of the construction of the first Order sales, it depends on. We just right now look which of these projects will come first. And depending on our 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.
All right. Thank you very much for taking my questions.
Thank you.
And our next question comes from Holger Steffen, FMC 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 Higher change in inventories in the Q2. Why was this figure much, much lower than in the 1st 3 months?
This is due to the fact that the projects we have finalized We could finalize in the Q2 17 megawatts is one issue. So They had to go out of their inventories. And we have to consider The delivery times of wind turbines are longer. So this It depends on if you when we order and which payment we have to do and when they get in our inventory
Okay. I see. And in the first half, revenues We are still relatively low. I think your revenues in the second half will be strong determined by The sale of the 2 new projects in Poland after completion, how probable is it that we will The complete project cost and at the same time, high revenues in your profit and loss statement.
It is the probability is very high. We expect really in the next couple of 2 months to get The sale finalized Poland and therefore, that we get the revenues and also the results in our And that we can see it in our balance
sheet. Yes. We will see much higher revenues They are because you have built these projects already then?
Exactly. Okay.
If we take a look of 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?
Yes. As you see just right now, take into consideration that we 128 megawatts, we have under construction. We made 1st 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 megawatts roundabout, so we see the next Step of projects which are upcoming.
So therefore, We have this is the outlook in this respect. Additionally, the project We expect maybe in we try to get it done in the United States. And in Panama, it's more difficult certainly in the moment. But nevertheless, We also the milestones for the other ones for the other projects are related mainly to construction start of construction with In Romania and South Africa, more in 2 years to expect, not in the short run.
Okay. But I think we for the next quarters, we will see High speed in Germany, maybe until the year of the end, Is the speed of the 1st 6 months or not?
Yes. It will be in the same amount. Yes, yes, 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 50, 55 megawatts we want to put into the construction.
And we will see further projects will be permitted. So in September, we will go into the tender with the 55 megawatts. And then I think in this year, we can start with the construction.
Okay. Thank you very much. So My last question, you've mentioned the sold project in South Africa and that you will get For the payments, if you are successful in the next tender. So when will this tender take place?
The tender will take place, I think, in the next month, in September, in September, yes, in September.
Okay. Okay. Thank you.
Sorry, with results next year. So I guess Okay. Sorry, I should add.
Okay. Thank you very much.
Thank you.
Our next question comes from Peter Oeten Eicher, Baader Bank. Please go ahead. Your line is now open.
Yes. Hello, Mr. Lesser. I have a question on your project sales in the Q2. 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 amount and the profit, 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 is potential and Also profitable business in Romania as well in the future.
Yes. First of all, we So, Wulte Mads Sweden, Sweden, we have agreed not to disclose the purchase price, but I can say the middle with Yes. The middle million area will be for the sales. And we have the sale of Ontario France, had the sale of Ontario France, Which is middle this year, it will be the result or it will be a result in total of €5,000,000 to €6,000,000 in the middle of 1 digit €1,000,000 it depends on some points and On the other hand, turnover will be, yes, lower 1 digit €1,000,000 So in Romania, we will have we got a first payment of around 4,400,000. We sold 100 percent of the shares, and we can get a low double digit €1,000,000 euro amount in total When the project of 2 21 megawatts, which will we have a where we also do the development on their payment, Which will be done maybe come up in the next 2 to 3 years.
So We think Romania has just right now a special situation. We saw in opposite to the recent years, we see investor interest, which has It becomes higher and higher. And 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. What we it's This is a target which we now think we can say is realistic Due to the fact that the investor interest is increasing.
So 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 and so we increase especially our PV
And the project sales, which you're targeting in South Africa Here, earnings prospects favorable as well or is this more difficult?
Yes, this is a situation where we as I said, we got a very low Payment of €700,000 but the issue is that we want to get the milestone payments which are related to the tender success, first of all, and to the later on Today, building construction of starting of construction of the project, We are talking about around midsize, higher
And we have not received further questions. I will hand back to the speaker.
So 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.