RWE's earnings grow in Q1 on strong wind, solar generation

RWE's campus in Essen, Germany. Image by RWE AG. All Rights Reserved.

May 12 (Renewables Now) - German energy group RWE AG (ETR:RWE) recorded a solid increase in its net profit and earnings for the first quarter of 2022 thanks to higher electricity generation from wind and solar power.

The adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the core business, which includes all renewables operations and Supply & Trading, more than doubled to EUR 1.25 billion (USD 1.31bn) and the group's adjusted net profit surged to EUR 735 million in the first three months of the year from EUR 340 million a year before.

The growth was driven by a 20% rise in solar and wind energy production. The higher generation was a result of more favourable wind conditions and the commissioning of the 857-MW Triton Knoll offshore wind farm, the 200-MW El Algodon Alto wind farm in Texas and further onshore projects in France and Germany.

The Onshore Wind/Solar segment swung back to an adjusted EBITDA of EUR 318 million from a loss of EUR 119 million a year earlier. The loss last year was due to the extreme cold in Texas while the start of this year was marked by favourable weather.

Renewables now account for 30% of RWE's overall generation capacity.

The Essen-based power major noted that around EUR 850 million was written off on a long-term supply contract for Russian coal as the group stopped accepting coal from Russia at the end of March because of UK sanctions.

Based on the strong start of the year, RWE affirmed its 2022 outlook, which was raised in February, and envisages an adjusted EBITDA in the core business in the range of EUR 2.9 billion to EUR 3.3 billion.

Below is a table with more details about RWE's performance in the first quarter and its outlook for 2022.

in EUR million Outlook 2022 Q1 2022 Q1 2021
Adjusted EBITDA Offshore Wind 1,350-1,600 420 297
Adjusted EBITDA Onshore Wind/Solar (loss) 650-800 318 (119)
Adjusted EBITDA Hydro/Biomass/Gas 700-900 263 213
Adjusted EBITDA Supply&Trading 150-350 297 189
Adjusted EBITDA Core Business 2,900-3,300 1,253 555
Adjusted EBITDA Coal/Nuclear 650-750 207 328
Adjusted EBITDA Group 3,600-4,000 1,460 883
Adjusted EBIT 2,000-2,400 1,098 548
Adjusted net income 1,300-1,700 735 340

(EUR 1 = USD 1.055)

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