Grids, renewables contribute to higher adj EBITDA for EnBW in Q1

German utility EnBW Energie Baden-Wuerttemberg AG (ETR:EBK) today said its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the first quarter of 2019 were up 5.3%, mainly thanks to the Grids and Renewable Energies divisions.

The result reached EUR 723 million (USD 810.3m), including EBITDA from the renewables business of EUR 118.6 million, growing by 24.3% on the year. Adjusted EBITDA for the Grids unit grew by 16.4% to EUR 418.5 million. These increases compensated for lower earnings in Sales and Generation & Trading.

EnBW said that growth in renewables earnings in the quarter was to a large extend due to good wind conditions in the spring, including an improvement in offshore wind yields. Capacity additions onshore, both from own projects and from acquisitions, also helped lift the result.

EnBW affirmed its full-year adjusted EBITDA guidance for a result of between EUR 2.35 billion and EUR 2.5 billion, which translates into year-on-year growth of 9% to 16%.

“In Renewable Energies most of all, we expect substantially higher earnings in 2019 than in the previous year, not least as we gradually bring our Hohe See and Albatros offshore wind farms into operation this autumn,” said CFO Thomas Kusterer. Construction of the two parks in the North Sea, of 497 MW and 112 MW, respectively, is progressing well, with completion expected by end-2019.

EnBW reported a net profit of EUR 273.8 million for the first quarter of 2019, up 99% year-on-year because of a higher valuation of securities portfolios as of the reporting date. Revenues rose by 12.4% to EUR 6.67 billion.

(EUR 1 = USD 1.12)

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