RWE’s Fiscal 2023 Investments and Growth in Renewable Energy Portfolio Drive Positive Earnings

RWE wind power partner

RWE, a leading energy company, has marked a substantial surge in its investments during the initial nine months of fiscal 2023, notably allocating €10.3 billion to its Growing Green program.

This figure stands in stark contrast to the €3.1 billion invested during the same period last year. The key acquisition of Con Edison Clean Energy Businesses in the US accounted for a significant portion, totaling €6.3 billion.

Additionally, the company directed investments towards new wind and solar power plants, battery technologies in Europe and the US, and strategic acquisitions in the Netherlands and the United Kingdom. Consequently, the portfolio expanded by 5.7 gigawatts (GW) by September 2023, with 100 projects, totaling 7.8 GW, currently under construction across ten countries.

Michael Muller, RWE AG’s CFO, emphasized, “Our robust investment endeavors are yielding fruitful results, with our portfolio growing by approximately six gigawatts since the year’s inception. This expansion has led to a notable upsurge in renewable electricity production, directly contributing to our earnings growth. We anticipate this positive trajectory to persist, given the ongoing construction of projects accounting for around eight gigawatts globally.”

In the first nine months of 2023, RWE attained an adjusted EBITDA of €6.2 billion at the Group level and €5.7 billion in the core business. Adjusted net income stood at €3.4 billion, propelled by amplified earnings in power generation within the Hydro/Biomass/Gas segment and a robust performance in the Supply and Trading business. The integration of new wind, solar, and battery projects, alongside the contributions from Con Edison Clean Energy Businesses acquired in March, bolstered the earnings surge.

RWE maintains its 2023 outlook, initially revised in July, expecting adjusted EBITDA within the range of €7.1 billion to €7.7 billion at the Group level, while adjusted net income is forecasted to reach €3.3 billion to €3.8 billion. As announced earlier in March 2023, the dividend for the ongoing fiscal year is set to increase by €0.10 to €1.00 per share.

Breaking down the business performance across segments:

Offshore Wind: Experienced an adjusted EBITDA of €998 million, a notable increase attributed to the commissioning of new capacities and favorable wind conditions at UK sites.

Onshore Wind/Solar: Achieved an adjusted EBITDA of €870 million, primarily driven by the contributions from the Con Edison Clean Energy Businesses acquisition and the commissioning of new renewable energy installations, although offset by lower realized electricity prices and weaker wind conditions.

Hydro/Biomass/Gas: Registered an adjusted EBITDA of €2,402 million, largely stemming from higher earnings in international generation portfolios and enhanced generation margins.

Supply & Trading: Witnessed an upswing in adjusted EBITDA, reaching €1,334 million, largely attributed to a one-off effect from the previous year due to sanctions on coal supplies from Russia.

However, RWE’s German Coal and Nuclear business faced a decline in adjusted EBITDA to €483 million compared to the prior year, primarily due to lower margins from unhedged electricity production assets and the shutdown of the Emsland nuclear power plant in mid-April 2023.

RWE’s financial position remains robust, with reported net debt of €6.2 billion as of September 30, 2023. The company anticipates maintaining a leverage factor comfortably below the self-imposed upper limit of 3.0 by the end of 2023, while the equity ratio surged to around 33 percent compared to approximately 21 percent as of September 30, 2022.