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RWE to be adding 2-3 GW of renewables per year

Image by RWE AG (http://www.rwe.com).

March 15 (Renewables Now) - German energy group RWE AG (ETR:RWE) will be installing 2 GW to 3 GW of renewables capacity annually with a focus on onshore and offshore wind, solar power and energy storage, the company said Thursday on announcing financial results for 2018.

The asset swap transaction with German utility E.on (ETR:EOAN), through which RWE will end up with a 9-GW renewables portfolio, “is proceeding well” and is seen to be finalised in the second half of the year, RWE said. The portfolio will be managed by RWE Renewables and will grow further through investments in the Americas, core markets in Europe and new destinations in Asia Pacific. The green energy capacity additions will be driven by net annual investment of around EUR 1.5 billion (USD 1.7bn).

2018 RESULTS

RWE reported lower adjusted net profit for 2018, on a stand-alone basis, and lower adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), mainly a result of the anticipated decline in wholesale electricity prices. Still, performance was in line with the company’s forecast.

Details are available in the table.

RWE stand-alone results in EUR million 2018 2017 2019 forecast
Net income 335 1,900 N/A
Adj. net income 591 973 300 - 600
Adj. EBITDA 1,521 2,066 1,200-1,500
-- for Lignite & Nuclear division 356 671 300–400
-- for European Power division 334 463 250–350
-- for Supply & Trading division 183 271 100–300

When results of Innogy SE (ETR:IGY) are added to the calculation, adjusted EBITDA for 2018 arrives at EUR 1.54 billion and the forecast for 2019 is EUR 1.4 billion - 1.7 billion.

The executive and supervisory boards of RWE will propose a higher ordinary dividend for 2018 of EUR 0.70 for common and preferred shares. The dividend is planned to further increase in 2019 to EUR 0.80 per share.

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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