ABO Wind’s net profit reaches new heights

ABO Wind’s net profit reaches new heights

The ABO Wind Group generated a profit after tax of 24.6 million euros in 2022 (previous year: 13.8). For the first time, the annual surplus exceeded the threshold of 20 million euros. The company aims to continuously achieve annual surpluses of more than 20 million euros from now on. The goal is to further increase net profits in the medium term.

In the 2016 financial year, ABO Wind had generated a net profit of more than ten million euros for the first time. This was also achieved in the following five years. Until a few months ago, the Managing Board had assumed to achieve more than 20 million euros for the first time in 2024. In an ad-hoc announcement published on 1 December 2022, ABO Wind announced a profit expectation of 22 to 26 million euros for 2023. In another ad-hoc announcement published on 24 January 2023, the profit forecast for 2022 was again raised to 20 to 25 million euros. The annual report published today in German (www.abo-wind.com/de/unternehmen/geschaeftsberichte.html) confirms this forecast. The English version of the annual report is expected to be available at the beginning of April and will be published here (www.abo-wind.com/en/company/annual-reports.html).

A turning point for renewable energies

The Russian war of aggression is causing terrible suffering in Ukraine. It has also triggered an energy crisis, especially in Europe. As a reaction to the crisis, policymakers at different levels are accelerating the expansion of renewable energies. ABO Wind is working on approximately 700 projects worldwide to help shape a reliable and climate-friendly energy supply with wind energy, photovoltaics, and storage systems. "In the current environment, our projects are more in focus than ever," says Managing Director Dr Karsten Schlageter. "This turning point is strengthening the growth of our company. It is becoming apparent that wind and solar projects are being approved more quickly and are therefore gaining in value."

The other key figures also demonstrate the good business development: Group turnover increased to 231.7 million euros in 2022 (previous year: 127.1). Total output, which includes changes in inventories in addition to sales, reached 308.1 million euros (previous year: 187.5). The inventory of work in progress includes, among other things, projects in the development phase. The expenses incurred for wind farms, solar projects and battery energy storage systems are capitalised in the balance sheet. ABO Wind works on the projects for several years before the turnkey construction or before selling the projects at an earlier stage. The development portfolio (www.abo-wind.com/en/company/facts-figures.html) has grown in 2022 and includes projects with a total output of around 21 gigawatts. The wind, solar and battery projects under development are spread across 16 countries, with a clear focus on Europe. In addition, ABO Wind is active in Latin America, Canada, and Africa. This development pipeline of 21 gigawatts comprises only projects for grid connection. In addition, the company is developing renewable energy projects for the production of green hydrogen. The establishment of a hydrogen economy is currently receiving political support. Nevertheless, there are still technological and economic hurdles to overcome before green hydrogen can be produced at a large-scale in countries like Canada, Argentina or South Africa, and exported to Europe. Large wind and solar farms developed by ABO Wind could produce the necessary electricity. Due to the higher risks in this context, these large-scale projects with a total capacity of 15 gigawatts are not included in the pipeline of grid-connected projects, but are shown separately (see https://www.abo-wind.com/en/development-construction/green-hydrogen.html).  

Successes in tariff tenders in early 2023

In addition to favourable political and social conditions, the dedicated and thorough work on the individual projects is decisive for the company’s entrepreneurial success. Due to this, ABO Wind has achieved several milestones in the past months. For example, the company secured tariffs for seven wind energy projects in the first tender of the German Federal Network Agency in 2023. These have a combined capacity of around 78 megawatts. ABO Wind had obtained most of the permits of these projects in 2022, thus contributing to the good annual result. The start of the turnkey construction of the projects is imminent. Commissioning is planned for 2024 and 2025.

The turnkey development and construction of renewable energy projects has always been at the core of ABO Wind in Europe. On other continents, the company regularly sells projects as soon as the development phase is completed. In the 2022 financial year, for example, ABO Wind sold a particularly large wind energy project in Canada (515 megawatts) as well as one solar project each in Argentina (32 megawatts) and Colombia (10 megawatts). Currently, the company is implementing its first larger projects outside of Europe on a turnkey basis. These are two solar farms in Colombia, each with a capacity of ten megawatts. ABO Wind had developed the projects until ready-to-build status. They are scheduled to go into operation in 2024. "We are pleased that we have been able to expand our core business to include the turnkey construction of solar farms in Colombia," says Managing Director Dr Schlageter.

Lucrative turnkey construction and project sales

In recent years, ABO Wind has significantly strengthened its financial position by increasing capital and issuing subordinated bonds and promissory note loans to develop more projects and implement them on a turnkey basis. In Spain, the company has nevertheless recently decided to sell a large portfolio of wind and solar projects with a combined output of 250 megawatts before construction. "Due to the high demand, we achieve a similarly good margin with the early sale as would have been possible with a turnkey construction," says Dr Schlageter. The prerequisite is that ABO Wind succeeds in bringing the sold projects to construction maturity within the next 15 months. The colleagues in Spain especially are putting great effort into reaching this goal.

In 2022, nine countries essentially contributed to the group's turnover. Germany's contribution was just under 35 percent. In France and Finland, ABO Wind commissioned further wind farms in 2022 and in France, for the first time, a solar farm. With a turnover of 27 percent (France) and just under 13 percent (Finland), both countries again had a significant share in the business success. In Finland, the largest turnkey project to date is currently under construction: the 84-megawatt Pajuperäkangas wind farm is scheduled to go into operation in 2023. After Spain with almost twelve percent of sales, the Republic of Ireland also contributed to the good result with six percent. On the island, ABO Wind connected the sixth wind farm to the grid in 2022, the seventh is under construction and will produce electricity from 2023. In Poland (four percent share), ABO Wind 2022 constructed a turnkey wind farm for the first time. Due to milestone payments from project sales, South Africa also contributed significantly to sales for the first time in 2022 (two percent). In addition, the United Kingdom and Canada together accounted for two percent of sales. ABO Wind generated marginal revenues in a further six countries (which together accounted for less than one percent).

Managing Director Dr Karsten Schlageter is very optimistic about the future for four reasons: "Firstly, we have already achieved a number of project successes in 2023. Secondly, we are feeling political tailwind worldwide. Thirdly, we are benefiting from the large number of projects under development that are progressing well. Most important, however, is the commitment of our now more than 1,000 colleagues. They are the basis for our future success.”