Offshore Wind: higher wind farm utilisation
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.
Onshore Wind/Solar: new plants contribute to improved result
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.
Hydro/Biomass/Gas: strong improvement in operating result
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.
Supply & Trading: good business performance
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.
Good results also outside of core business
Adjusted EBITDA in the Coal/Nuclear segment was €381 million, compared to a pro forma €205 million for the prior-year period. This was mainly due to the fact that higher margins were realised with the lignite-fired and nuclear power plants than in 2019. For the year as a whole, RWE continues to expect adjusted EBITDA of between €500 million and €600 million for this segment.
85% of capital expenditure meets “green” criteria
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%.
Strong financial position: equity ratio increases to more than 30%
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.
Promising field of hydrogen: RWE involved in more than 30 projects in three countries
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.
RWE is driving forward what is currently Germany’s largest hydrogen project, GET H2. Together with partners, the company is currently planning an electrolyser with a generating capacity of 100 MW at RWE’s power plant location in Lingen in Lower Saxony. In total, RWE is working with prominent partners from industry and the scientific community to drive forward more than 30 hydrogen projects in Germany, the Netherlands and the United Kingdom.
