DGAP-News

Energiekontor AG: Energiekontor stays on its growth path with a further increase in earnings - Seite 2

The Power Generation in Group-owned Wind Farms and the Operation Development, Innovation and Others segments each showed a decline in earnings, which is mainly due to external factors such as the comparatively poor wind output during the year and a marked depreciation of the British pound versus the euro. In contrast, the Project Development and Sales (Wind, Solar) segment saw a considerable increase in earnings, which more than compensated for the declines in earnings in the other two segments. All things considered, the revenue and income targets at both Energiekontor AG and the Group were reached or even slightly exceeded. Company growth thus continued as planned in 2016. Furthermore, thanks to the planning permissions totalling about 100 MW obtained by the end of 2016, a solid foundation was laid for the successful continuation of the positive Company performance in the current 2017 financial year.

Peter Szabo, CEO of Energiekontor AG, remarks: "The successful performance of Energiekontor AG in recent years should not obscure the fact that competition has increased considerably and that, even in Germany, subsidies for new projects in the renewable energy sector are now determined in auctioning procedures. We have thoroughly prepared for this scenario in recent years. The fact that Energiekontor has been awarded its third PV project in an auction in February 2017 shows that the Group can draw on the necessary experience to participate successfully in auctioning procedures."

He continues: "In our second core market, the UK, we even expect subsidies for onshore wind to be abolished altogether. From our point of view, auctions only serve as a transition before renewable energy, especially wind and solar, will compete directly with conventional energy sources. This is already partly the case today. In Scotland for example, Energiekontor is already relying exclusively on direct power purchase agreements or PPAs with major industrial corporations as the end customers to ensure the profitability of its wind farms. This means that projects are measured directly at the market price."