Revenue price caps imposed by the EU and the UK significantly hit profits from RWE's onshore wind and solar segment for the first three months of 2023, the company confirmed in its preliminary Q1 results.
Adjusted Ebitda for the onshore wind and solar segment was €247 million for the quarter compared with €318 million in the same period a year ago.
The German power giant said additional earnings for its onshore wind/solar business came from its acquisition of US utility Con Edison’s clean energy operations, but the overall decline in earnings was "mainly due to lower realised electricity prices".
News from the offshore wind business were more positive, with an adjusted Ebitda of €473 million for the quarter, up from €420 million in Q1 2022. The increase in earnings was due to the commissioning of new capacities, mainly the 342MW Kaskasi offshore wind farm off the coast of Heligoland in Germany, the company said.
Strong earnings from its other core business segments mean RWE still closed the quarter positively. The core business – which comprises renewables, gas and its supply and trading business – recorded an adjusted Ebitda of €2.3 billion for the quarter, while higher earning for coal and nuclear pushed adjusted Ebitda up to €2.8 billion at group level. Adjusted net income for the quarter was €1.7 billion.
The company maintained its 2023 full-year adjusted Ebitda expectations of €1.1-1.5 billion for its onshore wind/solar segment and €1.4-1.8 billion from offshore wind.
RWE’s full Q1 results are due to be published on 11 May.
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