In the first three quarters of 2021, RWE has achieved good results: Despite weather-related impacts, caused in part by the extreme cold snap in Texas at the start of the year, adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) at Group level, at €2,397 million, exceeded the figure for the previous year of €2,261 million. Adjusted EBIT of €1,339 million also exceeded the figure for the prior year of €1,182 million. Growth in adjusted net income was even stronger: At €1,026 million, this exceeded the result of €794 million for the same period in the previous year by around 30%.
For fiscal 2021, RWE still expects to achieve adjusted EBITDA of between €3.0 billion and €3.4 billion at Group level; in its core business, adjusted EBITDA should amount to between €2.15 billion and €2.55 billion. For its adjusted EBIT, RWE assumes a range of between €1.5 billion to €1.9 billion, and €1.05 billion to €1.4 billion for adjusted net income. The dividend statement is confirmed: For the current financial year, RWE still aims to increase its dividend to €0.90 per share.
In its core business with the Offshore Wind, Onshore Wind/Solar, Hydro/Biomass/Gas as well as the Supply & Trading segments, RWE achieved adjusted EBITDA of €1,677 million in the first nine months of 2021. The figure for the same period last year was €1,880 million. The main reason for this decrease were the losses resulting from the extreme weather experienced in Texas.
Offshore Wind: Adjusted EBITDA in the Offshore Wind segment was €656 million for the first three quarters, compared to €738 million for the same period in the previous year. The wind volume in Northern and Central Europe, which was well below the level of the previous year, had a negative impact here. A positive impact was achieved by the acquisition of a majority interest in the UK offshore wind farm Rampion, and the fact that, as at 30 September 2021, two-thirds of the 90 turbines at the Triton Knoll wind farm, which is currently under construction, were already supplying electricity. For the current year, RWE expects adjusted EBITDA of between €1,050 million and €1,250 million for this segment.
Onshore Wind/Solar: In the first three quarters of 2021, the Onshore Wind/Solar segment recorded adjusted EBITDA of €36 million, compared to €373 million in the same period in 2020. The extreme cold snap in Texas reduced earnings by approximately €400 million. Further burdens resulted from below-average wind conditions at onshore wind farm locations in Northern and Central Europe. Book gains from the sale of shares in three US onshore wind farms and earnings contributions from the numerous newly commissioned plants had a positive impact. For the current year, RWE expects adjusted EBITDA of between €50 million and €250 million for this segment.
Hydro/Biomass/Gas: Business in the Hydro/Biomass/Gas segment reached adjusted EBITDA of €430 million (previous year: €382 million). This was partly the result of higher payments received on the British capacity market compared to last year. RWE also achieved additional revenues from the short-term optimisation of its power station use. Adjusted EBITDA for this segment should lie between €500 million and €600 million.
Supply & Trading: Earnings at Supply & Trading were €609 million, far exceeding the already high figure of €399 million achieved last year. For this segment, RWE raised its outlook in July and now expects adjusted EBITDA to be significantly above €350 million for 2021 as a whole.
Non-core business results in line with forecast
Adjusted EBITDA in the Coal/Nuclear segment was €720 million, compared to €381 million for the same period in the previous year. For electricity from lignite and nuclear power, RWE realised higher wholesale margins than in 2020. For the year as a whole, the company continues to expect adjusted EBITDA of between €800 million and €900 million for this segment.
Capital expenditure up 80%
RWE’s gross investment in new wind power and solar plants as well as batteries in the first three quarters of 2021 totalled €2.5 billion, which is about 80% more than in the same period last year. Projects amounting to 3.8 gigawatts (GW) that are expected to go into operation by the end of 2022 are currently under construction. The total portfolio will therefore grow from currently 9.5 GW to more than 13 GW by the end of 2022.
Financial situation remains comfortable
As at the reporting date, the Group’s net debt amounted to €2,866 million, a marked decrease compared to the end of 2020 (31 December 2020: €4,432 million). This reduction is mainly the result of high cash flows from operating activities, timing effects resulting from hedging and trading activities, and a reduction in provisions for pensions as a result of market-driven increases in discount interest rates.
