RWE doubles 9-mo net income on new green capacity, strong demand
RWE's headquarters in Essen, Germany. Image by RWE AG.
RWE AG (ETR:RWE) more than doubled its adjusted net income in the first nine months of 2022 thanks to a significant expansion of its renewable power generation capacity and brisk demand amid the energy crisis.
The German energy group said on Thursday its green portfolio grew by 1.3 GW in the nine months through September which led to a 22% increase in the output of its own green power plants.
Considering projects currently under construction and acquisitions already announced, the green portfolio will grow by a further 9.4 GW. The growth is a result of the purchase of the clean energy operations of New York-based energy products and services provider Consolidated Edison Inc (NYSE:ED) which was agreed in October and will add renewable energy plants with a capacity of about 3 GW.
Additionally, the bottom-line result was boosted by the solid demand for electricity and the scarcity of available capacity across Europe in combination with an unusually strong international trading performance.
In the first nine months of the year, RWE invested EUR 3.1 billion (USD 3.11bn) in its core business, which includes renewables as well as supply and trading, with a focus on the expansion of renewables. The figure does not include the purchase price for the acquisition of Con Edison's operations.
Based on the results, the Essen-based power major reiterated its 2022 outlook for an adjusted net income in the range of EUR 2.1 billion to EUR 2.6 billion and reaffirmed its plan to pay out a dividend of EUR 0.90 per share.
The table below gives more details about RWE's financial performance in January-September 2022.
Amounts in EUR million
Adjusted EBITDA Offshore Wind
Adjusted EBITDA (loss) Onshore Wind/Solar
Adjusted EBITDA Hydro/Biomass/Gas
Adjusted EBITDA Supply & Trading
significantly above 350
Adjusted EBITDA Core business
Adjusted EBITDA Coal/Nuclear
Adjusted EBITDA Group
5,000 - 5,500
3,400 - 3,900
Adjusted net income
2,100 - 2,600
The group noted that it has put into operation three coal-fired power plants from the lignite reserve and will delay the decommissioning of two more plants to add an additional 2.1 GW of generation capacity and help ensure the security of supply. In addition, the Emsland nuclear power station will remain online until the middle of April 2023.
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