EQS-News

ABO Wind AG: Change of legal form to partnership limited by shares would open up great potential

EQS-News: ABO Wind AG / Key word(s): Market Report ABO Wind AG: Change of legal form to partnership limited by shares would open up great potential 06.06.2023 / 16:00 CET/CEST The issuer is solely responsible for the content of this announcement. Change of legal form to partnership limited by shares would open up great potential

The Managing Board is convinced that the considered change of the legal form of ABO Wind AG (stock corporation) into a partnership limited by shares (abbreviation in German: KGaA) would open up new perspectives for the company and open up considerable further share price potential for long-term oriented shareholders. "We are currently experiencing an impressive acceleration of the energy transition worldwide," emphasises Managing Board spokesman Dr Karsten Schlageter. The International Energy Agency expects renewable energy power plants with a capacity of around 2,400 gigawatts to be installed in the next five years. Before that, it took 20 years to install the same capacity. As a project developer with more than 1,000 employees and great expertise in the key technologies of wind energy, photovoltaics, battery storage and hydrogen, ABO Wind is predestined to help shape this rapid development. In order to connect as many wind farms, solar parks and storage facilities to the grid as quickly as possible, an even stronger capital base would be helpful.

"We have increased our debt and mezzanine capital in recent years," explains Dr Schlageter. Looking ahead, it would be good if ABO Wind had the opportunity to grow in equity capital as the third pillar of financing. "In the current environment, capital increases averaging around 25 million euros a year could help us in the next few years," says Schlageter. In addition to growth in the development of projects until they are ready for construction, ABO Wind could thus also implement significantly more and larger wind and solar parks on a turnkey basis in the future. Provided that other factors such as land provision, approval processes and delivery times for turbines also develop positively, with a strengthened equity base, ABO Wind could achieve a doubling of its annual net profit already in 2027 to around 50 million euros. In 2022, the most successful financial year to date, the group had reported an after-tax profit of more than 20 million euros for the first time. Slide 26 of the investor presentation (https://www.abo-wind.com/media/pdf/flyer/IR-Presentation.pdf) visualises a range of the expected development of total output and net profit. Dr Schlageter is convinced: "Once we have strengthened our equity base, we will be able to make much better use of the potential available to us in the current environment."