RWE generates more earnings from wind, solar businesses

RWE's BESS paired with a solar farm. Image source: RWE (www.rwe.com)

German energy group RWE AG (ETR:RWE) on Wednesday reported an adjusted net profit of EUR 1.36 billion (USD 1.49bn) for the first half of 2024, down from EUR 2.38 billion in the same period of 2023, and confirmed its 2024 outlook.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at EUR 2.9 billion, down from EUR 4.14 billion a year earlier.

The expected decline is due to lower earnings in the Flexible Generation and Supply & Trading segments, the company said. The Offshore Wind and Onshore Wind/Solar segments, however, delivered increased earnings.

The Offshore Wind business benefited from improved wind conditions and lifted its adjusted EBITDA to EUR 828 million from EUR 762 million in the first half of 2023.

The Onshore Wind/Solar segment saw adjusted EBITDA rise to EUR 730 million from EUR 519 million, driven by the commissioning of new capacity and the full six-month inclusion of Con Edison Clean Energy Businesses in the US. RWE also realised higher electricity prices than in 2023, particularly in the US, and was aided by better weather conditions.

“Our ‘Growing Green’ strategy is paying off - more than half of our adjusted EBITDA is already coming from our wind and solar energy business. Our power production from renewables reached a record level of 26 TWh and accounted for 45% of total generation,” stated RWE CEO Markus Krebber.

The company continues to invest in its portfolio, pouring EUR 4.5 billion of net investments in new plants during the first half of 2024. In the period, it made the final investment decision for the construction of 2.9 GW of wind, battery and solar projects. Currently, RWE has a total of 10.2 GW of new capacity under construction.

(EUR 1 = USD 1.093)