- Press Releases
March 18 (Renewables Now) - German energy group RWE AG (ETR:RWE) this week reported increased earnings for 2020 after its onshore, offshore wind and solar operations made higher contributions to the group result and helped exceed guidance.
The RWE group closed the past year with adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 3.24 billion (USD 3.87bn), up from a pro-forma total of EUR 3.02 billion booked in 2019. The result topped the upper end of the company’s forecast of EUR 2.7 billion-3 billion that was issued in March. Adjusted EBIT also rose, coming at EUR 1.77 billion.
At EUR 1.2 billion, adjusted net income was also higher than the expected range of EUR 850 million-1.15 billion. RWE attributed the better operating metrics to the improved results of its Supply & Trading business.
“The past financial year was an outstanding one for RWE, despite the challenges of the coronavirus crisis. This is a very good basis to continue our growth course,” said CEO Rolf Martin Schmitz. Details about RWE’s financial performance in 2020 and its outlook for 2021 are available in the table below.
|Figures in EUR million||2020||2019||Outlook 2021|
|Adjusted EBITDA Offshore Wind||1,069||961||1,050-1,250|
|Adjusted EBITDA Onshore Wind/Solar||472||442||50-250|
|Adjusted EBITDA Hydro/Biomass/Gas||621||671||500-600|
|Adjusted EBITDA Supply & Trading||539||731||150-350|
|Adjusted EBITDA Core business||2,676||2,676||1,800-2,200|
|Adjusted EBITDA Coal/Nuclear||559||340||800-900|
|Adjusted EBITDA Group||3,235||3,015||2,650-3,050|
|Adjusted net income||1,213||--||750-1,100|
RWE noted that the 11% year-on-year rise in EBITDA at its offshore wind segment was largely due to the favourable wind conditions in the first half of the year. The improvement at its Onshore Wind/Solar business, meanwhile, reflects the commissioning of new plants with a combined capacity of 800 MW.
The Coal/Nuclear segment, which is outside of RWE’s core operations, lifted its earnings due to higher realised generation margins.
The German group aims to bring online around 4 GW of wind and solar farms so as to reach over 13 GW of installed capacity by end-2022. It is currently working on the construction of around 3 GW of wind and solar projects, among which is the Triton Knoll wind farm in the North Sea. Its pipeline of development projects totals 34 GW.
Between 2020 and 2022, RWE plans to invest more than EUR 5 billion in its renewable energy portfolio. This year alone, it plans to bring online roughly 2 GW of wind, solar and battery storage capacity.
(EUR 1.0 = USD 1.195)