January 27 (Renewables Now) - German energy group RWE AG (ETR:RWE) significantly exceeded its guidance for 2021 as the solid performance of the Hydro/Biomass/Gas and the Supply & Trading units boosted the results.
The adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the core business, which includes all renewables operations and Supply & Trading, grew 1.2% in 2021 to EUR 2.76 billion (USD 3.11bn) and beat the upper end of the own projection of EUR 2.55 billion, RWE said on Wednesday, citing preliminary figures.
The Hydro/Biomass/Gas business was able to achieve a significant increase in the final quarter, in particular, supported by a strong day-to-day optimisation of the power plant dispatch while growth in Supply & Trading was driven by the solid performance in the first half of the year.
In Offshore Wind, the EBITDA came in at EUR 1.1 billion in line with the projections as the full consolidation of the offshore wind farm Rampion and the commissioning phase of the Triton Knoll wind farm were more than enough to offset the lower wind volume.
The Onshore Wind/Solar business was a drag on the group's performance with EBITDA plunging more than 50% mainly because of the extreme cold snap in Texas at the beginning of the year which caused losses of about EUR 400 million.
At EUR 3.65 billion, the group's adjusted EBITDA also exceeded the projected range of EUR 3 billion-3.4 billion supported by a 59% rise in the earnings at the coal and nuclear unit. The conventional power business has been the subject of criticism from minority investor Enkraft which has been pushing for an exit from the lignite activities in a quick and structurally convincing manner.
Based on the strong results, RWE reiterated the plan for a dividend of EUR 0.90 per share.
|in EUR million ||2021 ||Outlook 2021 ||2020 |
|Adjusted EBITDA Offshore Wind ||1,110 ||1,050-1,250 ||1,069 |
|Adjusted EBITDA Onshore Wind/Solar ||258 ||50-250 ||523 |
|Adjusted EBITDA Hydro/Biomass/Gas ||731 ||500-600 ||621 |
|Adjusted EBITDA Supply&Trading ||769 ||significantly above 350 ||539 |
|Adjusted EBITDA Core Business ||2,761 ||2,150-2,550 ||2,727 |
|Adjusted EBITDA Coal/Nuclear ||889 ||800-900 ||559 |
|Adjusted EBITDA Group ||3,650 ||3,000-3,400 ||3,286 |
|Adjusted EBIT ||2,185 ||1,500- 1,900 ||1,823 |
|Adjusted net income ||1,569 ||1,050-1,400 ||1,257 |
The final report for 2021 will be published on March 15.
(EUR 1 = USD 1.128)