RWE’s operating profits in its core business of renewable energy and energy supply and trading were squeezed in the first half of the year due to low winds in northern and central Europe and the winter storm in Texas.
Adjusted Ebitda in its core business fell by a fifth to €1.2 billion in the first six months of 2021, while that from coal and nuclear rose 75% to €545 million.
However, it has raised its expectations for full-year adjusted Ebitda at group level due to an “exceptionally strong performance” by its supply and trading unit, including during the Texas storm earlier this year, and which is expected to continue.
The developer also expects its portfolio of wind farms, solar plants and storage systems to grow from the current 9.3GW to more than 13GW by the end of 2022, having doubled investments in renewable energy to €1.8 billion in the first half of the year. It has 3.9GW of renewable energy capacity under construction that is due to be commissionned by the end of next year.
RWE’s group-level results for the first half of 2021 were roughly in line with last year, with an adjusted Ebitda of €1.75 billion (down 4% year on year), Ebit of €1 billion (down 6%) and adjusted net income of €870 million (up 6%).
This group-level adjusted Ebitda included €459 million from offshore wind – down 21% year on year, as wind volumes were lower in northern and central Europe. It also included a loss of €42 million in onshore wind and solar – down from a €299 million profit one year earlier, due to the winter storm in Texas causing a €400 million hit to the company as well as lower wind speeds at onshore wind farms in northern and central Europe. Its supply and trading unit performed well during the storm, but not enough to offset the losses in onshore wind and solar.
Outlook
RWE expects to achieve adjusted Ebitda of €3-3.4 billion for the full financial year, of which €2.15-2.55 billion is due to be from its core business of offshore wind, onshore wind and solar, hydro, biomass, gas and supply and trading.
The group-level guidance is €350 million higher than initially forecast due to a strong trading performance, including during the winter storm in Texas.
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