EnBW, a German utility, faced a 24% decline in earnings from renewables during its fiscal third quarter, attributed to a drop in market power prices. The company reported adjusted EBITDA of €331.3m for the three months ending in March, down from €437m in the corresponding period the previous year.
The decline in earnings was primarily driven by reduced returns from pumped storage, a consequence of the market price downturn. Despite this setback, EnBW remains committed to its renewable energy investments, with a total of €506m allocated to new projects during the quarter, compared to €212.2m in the same period last year.
The substantial increase in investment was largely directed towards the offshore wind sector, including planned wind farms in Great Britain and the ongoing construction of the EnBW He Dreiht wind farm in the German North Sea.
Reflecting on the market dynamics, Deputy Chief Thomas Kusterer noted, “Last year was characterized by an exceptional market environment. However, the market volatility has lessened in the meantime.” He further emphasized the company's resilience, stating, “We therefore continue to expect (group-wide) earnings in the current financial year to be slightly lower…”
EnBW's integrated portfolio approach has proven to be a pillar of strength, affirming its robust business model. The company's confidence in its sustainability initiatives was reaffirmed by a successful issuance of a green subordinated bond worth €500m in January, highlighting its commitment to environmental stewardship amidst market challenges.
