RWE AG has announced robust financial results for the first half of 2024, underscoring the success of its ‘Growing Green’ strategy. The company reported an adjusted EBITDA of €2.9 billion and an adjusted net income of €1.4 billion.
The significant growth in the Offshore Wind and Onshore Wind/Solar segments contributed substantially to these figures, despite a dip in earnings from the Flexible Generation and Supply & Trading segments compared to the previous year.
Renewable energy leading the charge
Markus Krebber, CEO of RWE AG, highlighted the strategic shift towards renewable energy as a key driver of the company’s performance. Our ‘Growing Green’ strategy is paying off – more than half of our adjusted EBITDA is already coming from our wind and solar energy business. Our power production from renewables reached a record level of 26 terawatt hours and accounted for 45% of total generation. At the same time, we have significantly reduced our CO2 emissions. We are continuing to invest billions of euros in the value-creating expansion of our geographically and technologically broadly diversified portfolio. At the same time, the demand for green electricity continues to rise. RWE is ideally positioned to continue to drive the energy transition both in Germany and internationally, he said.
In the first half of 2024, RWE achieved a 27% reduction in CO2 emissions compared to the same period in 2023, aligning with its commitment to drive the energy transition. The company’s investment in new plants reached €4.5 billion, with a focus on expanding its renewable energy portfolio. Significant projects include the Nordseecluster offshore wind farm in Germany and the OranjeWind project in the Netherlands. In total, RWE has 10.2 GW of new capacity under construction.
Segment Performance Overview
The Offshore Wind segment saw adjusted EBITDA rise to €828 million, a notable increase from €762 million in the first half of 2023. This growth was driven by better wind conditions. Similarly, the Onshore Wind/Solar segment reported an adjusted EBITDA of €730 million, up from €519 million in the previous year, bolstered by the commissioning of new capacity and favorable weather conditions, particularly in the US market.
Conversely, the Flexible Generation segment experienced a decline in adjusted EBITDA to €1,014 million, a significant drop from €1,949 million in the prior year. This decrease was primarily due to lower margins on electricity forward sales and reduced income from short-term power plant optimization. The Supply & Trading segment also saw a downturn, with adjusted EBITDA falling to €318 million from €799 million in 2023, reflecting a return to more typical levels after an extraordinary performance last year.
Strategic investments and financial Stability
Despite a high level of investment, RWE remains financially robust. As of June 30, 2024, the company’s net debt stood at €11.4 billion, with an equity ratio improved to 35.1%. While the leverage factor is expected to increase due to ongoing growth investments, RWE remains well within its self-imposed limits.
RWE has reaffirmed its earnings guidance for the full year 2024, expecting an adjusted EBITDA between €5.2 billion and €5.8 billion, and adjusted net income in the range of €1.9 billion to €2.4 billion. The company anticipates closing the year at the lower end of these forecasts, with plans to increase the dividend to €1.10 per share.
With a strong financial foundation and a clear focus on expanding its renewable energy portfolio, RWE is well-positioned to continue leading the energy transition both in Germany and globally.
