RWE, one of Europe's leading energy companies, has announced a notable increase in earnings for its offshore wind and onshore wind/solar segments during the first quarter of 2024.
In the offshore wind segment, adjusted EBITDA soared to €548 million, marking a significant rise from €473 million in the same period last year. RWE attributed this growth primarily to improved wind conditions, with the previous year experiencing below-average wind levels.
Similarly, the onshore wind/solar segment witnessed a remarkable surge in adjusted EBITDA, reaching €341 million compared to €247 million in the first quarter of 2023. RWE credited this positive earnings trend to the commissioning of new capacity and the inclusion of business activities from Con Edison Clean Energy Businesses in the US for the entire three months.
RWE's Chief Financial Officer, Michael Müller, expressed satisfaction with the company's performance, stating, “We can look back on a solid first quarter of 2024, with significant increases in earnings in both offshore wind and onshore wind/solar. This shows that our investments are paying off.”
Müller further emphasized RWE's commitment to renewable energy, highlighting that 42% of the company's electricity generation in the first quarter came from renewable sources. He confirmed RWE's outlook for 2024 and reiterated the target dividend of €1.10 per share for the current fiscal year.
RWE's strategic investments also played a crucial role in revenue growth. The acquisition of three offshore wind development projects from Vattenfall in the UK, totaling around €1 billion, contributed to the company's expansion efforts. Additionally, RWE significantly increased investments in the construction of new wind and solar power plants compared to the previous year.
However, despite these positive developments, RWE acknowledged challenges posed by declining electricity prices since November 2023. Consequently, the company expects adjusted EBITDA for the current fiscal year to close at the lower end of the forecast range, as stated during the Capital Markets Day in November 2023.
Nevertheless, RWE remains steadfast in its commitment to renewable energy expansion, with ongoing projects totaling a capacity of 8.3GW, including offshore wind projects like Sofia and Thor. The company is also actively advancing onshore wind and solar energy projects, with over 100 projects under construction in Europe and the US.
