Flexible generation biz drags down RWE's 9mo earnings

German energy group RWE AG (ETR:RWE) saw its adjusted net profit shrink to EUR 1.64 billion (USD 1.74bn) in the first nine months of 2024 and confirmed its full-year projections, expecting the result to reach the midpoint of its forecast.

The company said on Wednesday that its outlook for adjusted EBITDA and adjusted net profit has improved since the beginning of the year due to the increased earnings prospects in the Supply & Trading segment and the Flexible Generation unit which includes gas, hydro and biomass operations. Previously, those metrics were anticipated to stand at the lower end of the company’s guidance range.

RWE closed the first three quarters of 2024 with an adjusted EBITDA of EUR 3.98 billion, down from EUR 5.71 billion a year back mostly due to lower earnings in the Flexible Generation and Supply & Trading segments. The first of those divisions suffered from lower margins on forward electricity sales, while earnings at the power supply business could not match the extraordinarily high level from 2023.

The Offshore Wind business benefitted from improved weather conditions and delivered an adjusted EBITDA of EUR 1.08 billion, against EUR 998 million a year earlier. The Onshore Wind/Solar segment also lifted its earnings, generating an adjusted EBITDA of EUR 990 million, boosting its year-ago result of EUR 870 million thanks to the commissioning of new capacity and the recognition of Con Edison Clean Energy Businesses in the US.

“We are delivering a good financial performance and are well on track with our growth strategy,” commented CEO Markus Krebber.

During the nine months, the company generated 36 TWh of electricity from renewable energy sources, an all-time high representing a 14% year-on-year rise.

RWE had 36.2 GW in its green energy portfolio at end-September and is building an additional 11.2 GW of plants as it aims to achieve more than 65 GW by 2030. In the first nine months of 2024, it spent EUR 6.9 billion to grow its green energy portfolio.

More details about RWE's Jan-Sept financial results:

Image source: RWE AG

(EUR 1.0 = USD 1.062)

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