RWE continues its renewables drive

In: Windfarms
RWE is continuing to expand its renewables business: in the first three quarters of 2020, the company commissioned about 500 MW of new wind and solar power plants, with about 800 MW more expected during the fourth quarter. The company aims to expand its wind and solar power portfolio to about 10 GW by the end of the year.

RWE's earnings in the first three quarters of 2020 increased: adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) rose to €2.2 billion. This represents an increase of 13% compared to the pro forma figure of €2 billion for the same period last year. A 29% rise was registered for adjusted EBIT, to €1.1 billion. The pro forma figure from the same period last year was €891 million. Adjusted net income reached €762 million.

RWE earnings forecast for 2020 includes an adjusted EBITDA target between €2.7 billion and €3.0 billion, and adjusted EBIT between €1.2 billion and €1.5 billion. The target for adjusted net income is between €850 million and €1.15 billion.

Markus Krebber, CFO of RWE AG, said: “The strong operating result we achieved for the first three quarters shows that RWE has weathered the coronavirus crisis well. We therefore confirm our earnings forecast for 2020. Our plan to increase the dividend for the current fiscal year also remains unchanged. Our successful capital increase in summer will enable us to accelerate our mid to long-term growth in renewables. We have already taken the first step by acquiring the Nordex pipeline, a transaction we have just completed.”

In its core business of Offshore Wind, Onshore Wind/Solar, Hydro/Biomass/Gas and Supply & Trading, RWE achieved adjusted EBITDA of €1.8 billion for the first three quarters of the year.  That amounts to an increase of 4%. For the year as a whole, RWE expects adjusted EBITDA of between €2.15 billion and €2.45 billion for its core business.

Adjusted EBITDA in the Offshore Wind segment increased in the first three quarters of 2020, to €738 million, compared to €660 million for the same period last year. RWE attributed the 12% increase to better wind conditions in the first quarter of 2020. For the current fiscal year, RWE expects adjusted EBITDA of between €900 million and €1,100 million for this segment.

In the first three quarters of 2020, capital expenditure on property, plant and equipment amounted to €1.6 billion. €1.3 billion of this went into the construction of new wind and solar power plants as well as battery storage, such as the large Triton Knoll offshore wind farm off the coast of England and Kaskasi, near Heligoland. Thus, capex eligible for green investments according to the proposed EU taxonomy amounted to 85%.

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