May 12 (Renewables Now) - German energy group RWE AG (ETR:RWE) recorded a solid increase in its net profit and earnings for the first quarter of 2022 thanks to higher electricity generation from wind and solar power.
The adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the core business, which includes all renewables operations and Supply & Trading, more than doubled to EUR 1.25 billion (USD 1.31bn) and the group's adjusted net profit surged to EUR 735 million in the first three months of the year from EUR 340 million a year before.
The growth was driven by a 20% rise in solar and wind energy production. The higher generation was a result of more favourable wind conditions and the commissioning of the 857-MW Triton Knoll offshore wind farm, the 200-MW El Algodon Alto wind farm in Texas and further onshore projects in France and Germany.
The Onshore Wind/Solar segment swung back to an adjusted EBITDA of EUR 318 million from a loss of EUR 119 million a year earlier. The loss last year was due to the extreme cold in Texas while the start of this year was marked by favourable weather.
Renewables now account for 30% of RWE's overall generation capacity.
The Essen-based power major noted that around EUR 850 million was written off on a long-term supply contract for Russian coal as the group stopped accepting coal from Russia at the end of March because of UK sanctions.
Based on the strong start of the year, RWE affirmed its 2022 outlook, which was raised in February, and envisages an adjusted EBITDA in the core business in the range of EUR 2.9 billion to EUR 3.3 billion.
Below is a table with more details about RWE's performance in the first quarter and its outlook for 2022.
|in EUR million ||Outlook 2022 ||Q1 2022 ||Q1 2021 |
|Adjusted EBITDA Offshore Wind ||1,350-1,600 ||420 ||297 |
|Adjusted EBITDA Onshore Wind/Solar (loss) ||650-800 ||318 ||(119) |
|Adjusted EBITDA Hydro/Biomass/Gas ||700-900 ||263 ||213 |
|Adjusted EBITDA Supply&Trading ||150-350 ||297 ||189 |
|Adjusted EBITDA Core Business ||2,900-3,300 ||1,253 ||555 |
|Adjusted EBITDA Coal/Nuclear ||650-750 ||207 ||328 |
|Adjusted EBITDA Group ||3,600-4,000 ||1,460 ||883 |
|Adjusted EBIT ||2,000-2,400 ||1,098 ||548 |
|Adjusted net income ||1,300-1,700 ||735 ||340 |
(EUR 1 = USD 1.055)