ABO Energy posts net profit of EUR 11.4m in H1 2024, up 28% y/y

Image by ABO Wind AG.

German renewables developer ABO Energy (ETR:AB9) on Friday presented its earnings for the first half of 2024, reporting a net profit of EUR 11.4 million (USD 12.6m), a 28% increase compared to the year-ago period.

While sales revenues were lower year-on-year -- EUR 122.5 million compared to EUR 130.7 million -- the significant rise in finished goods and work in progress reflects the company's expanding project pipeline.

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The total turnover and operating revenue, which is the sum of sales revenues and changes in work in progress, rose to EUR 186.6 million in this year’s first semester from EUR 158.8 million a year ago, ABO Energy said.

ABO Energy is currently working on developing and constructing renewable energy and battery storage projects with a total capacity of 24.8 GW. This pipeline is 60% wind, 30% solar, and 10% battery projects. The company also has a pipeline of 20 GW hydrogen projects.

According to the renewables company, the first half of 2024 was an approval bonanza in Germany, as the country greenlit around 5.6 GW of wind projects.

“Particularly in our home market in Germany, we are currently benefiting not only from faster approval procedures, but also from the increased willingness to provide land for renewable energy use,” said Managing Director Karsten Schlageter.

The energy crisis, fueled by the war in Ukraine, continues to bite, but it is also driving demand for wind and solar energy. Management is evaluating options to increase funding to capitalise on the current momentum in the renewable energy sector, Schlageter said.

ABO Energy, confirming forecast, expects its the full-year 2024 consolidated earnings after taxes to stand between EUR 25 million and EUR 31 million.

The company remains optimistic despite volatile electricity price and uncertain interest rate development, and sees a potential in the medium term to increase annual profits to EUR 50 million.

(EUR 1.0 = USD 1.107)