RWE’s core business, which includes renewables, reported a drop in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the first half of 2021.
The German energy company reported an adjusted EBITDA for the core business of €1.2bn in the first six months of 2021, compared with €1.5bn in the first half of 2020.
Adjusted EBITDA for the offshore wind business in the first half of this year was also down to €459m, compared to €585m for the same period in the previous year, due to “much lower” wind volumes in Northern and central Europe compared to the previous year.
For the current year, RWE expects adjusted EBITDA of between €1bn and €1.2bn for this segment.
In the first six months of 2021, RWE’s onshore wind and solar segment recorded adjusted EBITDA of minus -€42m, compared to €299m in the same period in 2020.
RWE said this result was due to the extreme cold snap in Texas that led to an earnings shortfall of around €400m, while additional losses were due to below-average wind conditions at onshore wind farm locations in Northern and Central Europe.
During the first six months of 2021, RWE invested €1.8bn in new wind farms and solar plants as well as battery projects, double the amount invested in the same period last year.
The company has projects amounting to 3.9GW under construction, which will be commissioned by the end of 2022.
The portfolio will grow from 9.3GW today to more than 13GW by the end of 2022.
In addition, RWE has started construction on the 1.4GW offshore wind farm Sofia off the British coast, which is scheduled for completion in the fourth quarter of 2026.
Markus Krebber, CEO of RWE, said: “The transformation of RWE is progressing swiftly. In the
first half of the year we invested €1.8bn gross in renewables, which was twice as much as
in the first six months of 2020. And we are continuing full speed ahead.
“This year we will commission new wind farms and solar plants as well as storage systems with 1.8GW with a further 2.1GW to follow next year.
“This will take us to our target of more than 13GW by the end of 2022. Financially, we are also doing well. We have therefore significantly raised our 2021 earnings forecast.”