German energy group RWE AG (ETR:RWE) said today that the first-quarter (Q1) operating profit of its renewables segment, at EUR 154 million (USD 175.7m), is essentially unchanged compared to a year back.
Although not operating at full capacity, the new 295-MW Nordsee Ost and 576-MW Gwynt y Mor offshore wind farms had a positive effect on the division’s earnings, the company said. Furthermore, RWE realised capital gains on the divestments of small run-of-river power plants along the Upper Ruhr.
It also should be noted that the prior year result took into consideration extraordinary income from the sale of Gwynt y Mor-related network infrastructure. “Net of one-off effects, the Renewables Division would have posted a much higher result than in the previous year,” said CFO Bernhard Guenther.
The renewables segment recorded a 4% year-on-year increase in Q1 earnings before interest, tax, depreciation and amortisation (EBITDA) to EUR 233 million. External revenue was up by 36.4% to EUR 120 million, while internal revenue climbed 7% to EUR 230 million.
In January-March 2016, RWE spent some EUR 23 million of capital on renewables, down from EUR 69 million a year earlier.
Overall, the group posted a 59.4% drop in Q1 net profit to EUR 879 million because the 2015 figure included a capital gain on the sale of RWE Dea. The group confirmed its earnings outlook for 2016. It continues to expect a significantly lower 2016 operating result at the renewables division compared with the prior year.
(EUR 1.0 = USD 1.141)
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