Electricity price flushes in money
RWE doubles its profit
01/25/2023, 6:50 p.m
In the crisis year 2022, RWE was able to significantly exceed its own expectations: the energy company doubled its profit to 3.2 billion euros within a year. Above all, the business with water, biomass and gas power plants is profitable.
The energy company RWE doubled its profit last year due to the significant increase in electricity prices. According to the group, the main reasons are the increased use of hydro, biomass and gas power plants and the increase in capacity for wind and solar systems. Based on preliminary figures, net earnings are expected to be EUR 3.2 billion, informed RWE. In 2021 it was almost 1.6 billion euros. Business developed better than expected, especially in the fourth quarter. Electricity prices rose sharply last year; Operators of plants that produce electricity from renewable sources benefited greatly.
RWE made a bottom line profit of 2.37 billion euros with its hydropower, biomass and gas power plants – after 731 million euros in 2021. With onshore wind farms and solar systems, the group earned 827 million euros, more than three times as much as in 2021. The Wind turbines at sea brought a profit of 1.4 billion euros, and in the energy trading division net sales rose from almost 770 million euros to 1.16 billion euros. The German coal and nuclear energy business, on the other hand, is expected to make lower earnings contributions to the 2022 business result than in 2021.
Before interest, taxes, depreciation and amortization, profits are expected to be around 6.3 billion euros, RWE said. The group emphasized that last year it invested 4.4 billion euros in wind power and solar systems, significantly more than in the previous year.
In its electricity price brake, the Federal Government has stipulated that so-called excess profits from electricity producers should be skimmed off in order to counter-finance the relief for consumers. Each type of generation such as wind, solar, lignite or nuclear energy is granted a certain amount of revenue as a basis. 90 percent of what is achieved should be skimmed off.