Thursday November 11, 2021
Renewables are collapsing
Coal and nuclear power polish RWE numbers
Too weak wind and unusual cold: RWE has to buy expensive electricity in order to be able to meet delivery obligations. The high energy prices are a godsend for their own conventional kilns.
The energy group RWE earned a little more in the first nine months thanks to its classic businesses in trading, coal and nuclear energy. From January to the end of September, the company brought in an adjusted operating result (Ebitda) of 2.4 billion euros, as the largest German electricity company announced. While the trading business and also the power generation of the coal and nuclear power plants increased, the results of the wind power plants on land collapsed due to bad weather conditions.
RWE confirmed the forecast according to which the group is aiming for an adjusted Ebitda of 3.0 to 3.4 billion euros at group level in 2021. The dividend is to rise to 90 cents per share after 85 cents previously.
“We performed better in the first three quarters than in the previous year, despite weather-related losses,” said CFO Michael Müller. “We owe this primarily to the good business in energy trading.” The division increased its operating profit within a year from 399 million to 609 million euros. The coal and nuclear power plants, which are no longer part of the core business, also increased thanks to the increased wholesale electricity prices. At 720 million euros, your result was almost twice as high as a year earlier.
The onshore wind / solar sector, on the other hand, only had an adjusted Ebitda of 36 million euros – less than a tenth of the previous year’s figure. CFO Müller put the losses compared to average wind conditions at around 150 million euros. In addition to unfavorable wind conditions, the cold of the century in February put a strain on business in Texas. Numerous wind turbines had failed there, so that RWE was only able to meet its delivery obligations by purchasing electricity at high prices. RWE has put the losses as a result of 400 million euros.
RWE has transformed into one of the largest green electricity producers in Europe and is well on the way to having more than 13 gigawatts of wind power, solar and storage capacities by 2022. It is currently 9.5 gigawatts. This does not go far enough for the activist investor Enkraft. He again demanded a surrender of the lignite business. This hinders the development of the core business.