RWE expects to close the first quarter of 2023 with an adjusted EBITDA of €2.8 billion at Group level and adjusted EBITDA of €2.3 billion in the core business according to preliminary figures. The result for the first three months is thus significantly higher year-on-year. Adjusted net income is expected to reach €1.7 billion.
The increase in earnings is primarily due to higher earnings from international power generation in the Hydro/Biomass/Gas segment. In addition, previous year’s earnings were impacted by charges from sanctions on hard coal from Russia. They amounted to about €850 million. Furthermore, additional generation capacities based on renewable energies contributed to the strong result. This includes the commissioning of new-build projects as well as the activities of Con Edison Clean Energy Businesses, acquired on 1 March 2023 and integrated into the newly created RWE Clean Energy. Thanks to this acquisition, RWE is also one of the leading renewable energy companies in the US.
The outlook for fiscal 2023 as a whole and the dividend target of € 1.00 per share for the current financial year have been confirmed.
Business performance in the first quarter of 2023 by segment
Offshore Wind: Adjusted EBITDA in the Offshore Wind segment is expected to be €473 million in the first quarter of 2023, compared to €420 million year-on-year. The increase in earnings is due to the commissioning of new capacities, mainly the Kaskasi offshore wind farm off the coast of Heligoland.
Onshore Wind/Solar: Adjusted EBITDA in the Onshore Wind/Solar segment is expected to be €247 million in the first three months compared to €318 million year-on-year. The decline in earnings is mainly due to lower realised electricity prices. Additional earnings were recognised from the acquisition of Con Edison Clean Energy Businesses which has been fully consolidated since 1 March 2023.
Hydro/Biomass/Gas: For the Hydro/Biomass/Gas segment, adjusted EBITDA is expected to be €1,177 million in the first quarter of 2023, compared to €263 million year-on-year. This is mainly the result of higher earnings from short-term power plant deployment of the international generation portfolio and higher generation margins.
Supply & Trading: Adjusted EBITDA in the Supply & Trading segment is expected to increase to €289 million in the first quarter of 2023 compared to -€550 million in the same period last year. The year-on-year increase in earnings is due to the fact that in the first quarter of 2022 sanctions on coal deliveries from Russia led to an impairment of about €850 million.
Coal/Nuclear: In the first quarter of 2023, adjusted EBITDA in the Coal/Nuclear segment is expected to reach €496 million compared to €207 million year-on-year. Higher margins from lignite-based power generation are the deciding factor here: The electricity production of the first quarter of 2022 was sold forward at lower prices compared to the electricity production of the first three months of 2023. In addition, the Emsland nuclear power plant contributed to earnings until its shutdown on 15 April 2023.
Final figures for the first quarter of 2023 will be released as planned on 11 May 2023.
Preliminary earnings for the first quarter of 2023
