RWE's adjusted EBITDA falls in H1, guidance affirmed

German energy group RWE AG (ETR:RWE) on Thursday posted a drop in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the first half of 2021 as the strong trading result was not enough to offset a loss in the onshore wind and solar business, but the increased outlook for the year was maintained.

The group's adjusted EBITDA fell 4.5% to EUR 1.75 billion (USD 2.05bn) in the first six months of 2021, dented by a loss of EUR 42 million in the onshore wind and solar business. The negative operating result of the unit, which compares to adjusted EBITDA of EUR 299 million a year earlier, was caused by the extreme cold snap in Texas which led to an earnings shortfall of EUR 400 million.

The decline was partially offset by the solid performance in the energy trading business where adjusted EBITDA grew to EUR 525 million from EUR 322 million a year back.

The German energy major reiterated its earnings target that was increased at the end of July based on "exceptionally" strong energy trading in the first six months. Adjusted EBITDA for the group in 2021 is now expected to be between EUR 3 billion and EUR 3.4 billion, compared to EUR 2.65 billion-3.05 billion previously.

The company has made further progress in the expansion of its renewables operations, doubling its investments in new wind farms and solar plants as well as battery projects to EUR 1.8 billion gross in the first half of the year.

The group's portfolio is expected to grow to over 13 GW as wind farms, solar plants and battery systems with a total of 3.9 GW, currently under construction, will be put into operation by the end of next year. Projects with 1.8 GW will be put online in 2021, followed by a further 2.1 GW next year.

(EUR 1 = USD 1.172)

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