- Adjusted EBITDA increases by 13% to €2.2 billion; adjusted EBIT up 29% to €1.1 billion; adjusted net income at €762 million
- Wind and solar power portfolio expected to increase to about 10 GW by year-end
- RWE involved in more than 30 projects in the promising field of hydrogen
Markus Krebber, CFO of RWE AG: 'The strong operating result we achieved for the first three quarters shows that RWE has weathered the coronavirus crisis well. We therefore confirm our earnings forecast for 2020. Our plan to increase the dividend for the current fiscal year also remains unchanged. Our successful capital increase in summer will enable us to accelerate our mid to long-term growth in renewables. We have already taken the first step by acquiring the Nordex pipeline, a transaction we have just completed.'
In its core business of Offshore Wind, Onshore Wind/Solar, Hydro/Biomass/Gas and Supply & Trading, RWE achieved adjusted EBITDA of €1.8 billion for the first three quarters of the year. Compared with the pro forma result for the prior-year period, that amounts to an increase of 4%. For the year as a whole, RWE expects adjusted EBITDA of between €2.15 billion and €2.45 billion for its core business.
Adjusted EBITDA in the Offshore Wind segment increased significantly in the first three quarters of 2020, to €738 million. This compares with a pro forma €660 million for the same period last year. The increase of 12% can be largely attributed to better wind conditions in the first quarter of 2020. For the current fiscal year, RWE expects adjusted EBITDA of between €900 million and €1,100 million for this segment.
In the Onshore Wind/Solar segment, adjusted EBITDA increased by 8% year on year to €336 million. The pro forma figure for the first three quarters of 2019 was €311 million. This performance was driven by the commissioning of new onshore wind and solar power plants in Europe and North America, and higher wind volumes. Because of the coronavirus pandemic, the commissioning of some plants has been delayed until next year, in the USA in particular. For the current year, RWE continues to expect adjusted EBITDA of between €500 million and €600 million for this segment.
Strong earnings were also registered in the Hydro/Biomass/Gas segment, for which adjusted EBITDA increased to €382 million from a pro forma figure of €297 million for the same period in 2019. The reinstatement of the British capacity market was an important factor here. For the current year, RWE expects adjusted EBITDA of between €550 million and €650 million for this segment.
RWE's trading activities delivered very satisfactory results despite the coronavirus crisis. Adjusted EBITDA reached €399 million, compared to a pro forma €569 million for the same period in 2019. For fiscal 2020, RWE expects this segment to close the year at the upper end of the forecast range for adjusted EBITDA of between €150 million and €350 million.
In the first three quarters of 2020, capital expenditure on property, plant and equipment amounted to €1.6 billion. €1.3 billion of this went into the construction of new wind and solar power plants as well as battery storage, such as the large Triton Knoll offshore wind farm off the coast of England and Kaskasi, near Heligoland. Thus, capex eligible for green investments according to the proposed EU taxonomy amounted to 85%.
As at 30 September 2020, the equity ratio had improved once again, reaching 31.3% (31 December 2019: 27.3%). This was mainly the result of the proceeds from the capital increase of €2 billion in August. This also had a positive impact on net debt, which fell to €5.9 billion as at the reporting date.
Hydrogen offers huge potential for the energy transition, and thus for RWE. The company is one of the few to be involved in projects along the entire hydrogen value chain. In addition to constructing facilities that supply power from renewables for green hydrogen, RWE also has the expertise to produce it using large-scale electrolysers, store it in its own gas storage systems, and supply it to industrial customers to meet their requirements. The company's own gas-fired power stations are also potential customers in the longer term.
For any questions please contact the team of Investor Relations:
T +49 (0) 201-5179-3112
RWE Platz 1
45141 Essen
Germany
London Office
c/o RWE Supply & Trading
T +44 (0) 20 7015 5453
60 Threadneedle Street
London EC2R 8HP
United Kingdom
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RWE AG published this content on 12 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2020 06:08:01 UTC