RWE AG, under CEO Markus Krebber, is delivering solid financial performance, advancing its “Growing Green” strategy.
The company invested €6.9 billion primarily in offshore wind and solar projects across Europe and the U.S., increasing its renewable capacity to 36.2 GW, with 11.2 GW more under construction.
Challenges in Offshore Wind and Hydrogen:
RWE faces delays in the U.S. offshore wind market due to permitting issues and slower-than-anticipated progress in Europe’s hydrogen economy, affecting their planned growth in these areas.
Renewables and Emissions Reduction:
RWE’s renewable energy production hit a record 36 TWh in the first three quarters, marking a 14 percent increase year-over-year, while reducing CO₂ emissions by 21 percent compared to 2023 levels.
Financial Performance:
Adjusted EBITDA reached €4.0 billion, and adjusted net income €1.6 billion in the first nine months, driven by increased renewable energy production.
Offshore Wind EBITDA grew to €1,079 million, with the Onshore Wind/Solar segment seeing gains from new capacity and U.S. expansions. Flexible Generation and Supply & Trading segments saw lower earnings than in 2023 but are improving toward mid-year expectations.
Adjusted EBITDA in the Offshore Wind segment reached €1,079 million in 9 months of 2024, compared to €998 million in the previous year due to improved wind conditions compared to the previous year.
Onshore Wind/Solar segment recorded adjusted EBITDA of €990 million, compared to €870 million in the previous year due to the commissioning of new capacity and the recognition of the business activities of Con Edison Clean Energy Businesses in the US.
Adjusted EBITDA in Flexible Generation segment dropped to €1,447 million in three quarters compared to €2,413 million in the previous year due to lower margins on forward electricity sales and lower income from the short-term optimisation of power plant dispatch.
Supply & Trading’s adjusted EBITDA of €465 million was significantly below the prior-year figure of €1,334 million.
Outlook and Financial Stability:
RWE’s 2024 earnings outlook has slightly improved, and the company expects to meet mid-range forecasts despite challenges. Net debt rose to €12.2 billion due to growth investments but remains manageable within a self-imposed leverage limit. The dividend target for 2024 is set at €1.10 per share.
Baburajan Kizhakedath