German energy company EnBW adjusted earnings from renewables rose almost 94% to over €236m in the first quarter of 2020, compared with last year, driven by output from the Hohe See and Albatros offshore wind farms.
Better spring wind conditions at both offshore and onshore wind farms and higher water levels at run-of-river hydro plants also contributed to the positive earnings performance, the company said.
The company’s overall adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) were up over 20% in the first quarter of 2020, compared with last year, as a result of the strong showing in renewables.
Adjusted earnings were €945m in the first three months of the year, up from €784m in 2019.
However, revenue was down 8.4% to just over €5.4bn from more than €5.9bn last year.
EnBW said earnings guidance for the whole of 2020 remains unaltered to date.
Adjusted EBITDA for the 2020 financial year is expected to be in a range between €2.75bn and €2.9bn, which is 13% to 19% above the previous year.
EnBW chief financial officer Thomas Kusterer: “We have set ourselves a target of a substantial increase in earnings for the full year.
“As a result of our two offshore wind farms Hohe See and Albatros coming into operation, we expect significantly higher earnings in particular in our renewables business.
“At present, however, there is still considerable uncertainty regarding the effects of the corona pandemic over the year as a whole. What is certain is that we will have a negative impact from corona.”
EnBW said that in the weeks ahead, the scale of the effects caused by the coronavirus will be analysed in more detail.
This will help it to target countermeasures to be taken as needed.
“EnBW is currently confident of being able to attain its earnings targets for this year despite corona, at least at the lower end of the guidance range,” the company said.
Kusterer added: “Overall, we have a good basis and a stable business model to carry us relatively well through the crisis.”
However, net profit attributable to the shareholders went down from a profit of €273.8m in the previous year’s period to a €10.4m loss in the latest period under review.
The fall in group net profit is primarily due to the lower financial result and reflects the valuation of securities portfolios as of the reporting date, the company said.