RWE's campus in Essen, Germany. Image by RWE AG. All Rights Reserved.
July 28 (Renewables Now) - RWE AG (ETR:RWE) has again increased its full-year outlook on the back of a strong renewables business in the first half of 2022 and positive prospects for the rest of the year.
The German power major, which in February already raised its 2022 targets, now expects the group's adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to be between EUR 5.0 billion and EUR 5.5 billion (USD 5.58bn), compared with EUR 3.6 billion-4.0 billion projected earlier.
Adjusted EBITDA in the core business, which comprises the group's renewables operations and supply and trading, is seen in the range of EUR 4.3 billion to EUR 4.8 billion, up from EUR 2.9 billion - 3.3 billion in the previous forecast.
The adjusted net income target was also raised to EUR 2.1 billion -2.6 billion from EUR 1.3 billion - 1.7 billion.
The higher targets reflect the robust performance of RWE's renewables operations in the first six months of the year and the expectation that the positive trend will continue.
Growth in the first half was driven by the hydro/biomass/gas segment where adjusted EBITDA more than doubled to EUR 755 million, according to preliminary figures. The increase is attributable to stronger short-term asset optimisation and higher international generation margins.
The onshore wind and solar business also reported robust performance as a result of capacity additions, higher capture prices and better wind conditions.
Adjusted EBITDA in the offshore wind segment grew more than 37% largely driven by the commissioning of the Triton Knoll offshore wind farm and better wind conditions.
Details about RWE's financial performance in the first half of 2022 and the revised outlook are available in the table below:
Anna is a DACH expert when it comes to covering business news and spotting trends. She has also built a deep understanding of Middle Eastern markets and has helped expand Renewables Now's reach into this hot region.