The energy group RWE, one of the most important players in the offshore industry, has expanded its portfolio, but fears setbacks in the future.
In the first nine months, €6.9bn was invested in the expansion of the portfolio. Investments focused primarily on offshore wind power projects in the North Sea as well as new solar and onshore wind farms in Europe and the USA. Generation capacity increased to 36.2 GW. According to the information, further projects with a total capacity of 11.2 GW are in the pipeline.
Following the election result in the USA, the risks for offshore wind projects have increased. This also applies to RWE ‘s offshore wind project off the east coast of the USA, which could be delayed due to outstanding approvals. The ramp-up of the hydrogen economy in Europe is also not progressing as quickly as expected. The goal of building additional electrolysis capacities could be delayed as a result, according to reports.
Against this backdrop, the company has announced that it will acquire shares with a total volume of up to €1.5bn. The buy-backs are scheduled to start in the fourth quarter of 2024 and extend over a period of up to 18 months.
RWE generates more “green” electricity than ever before
The Group recorded a good operating performance in the first nine months of 2024. The company generated more electricity from renewables than ever before. 36 TWh is an increase of 14% compared to the previous year – a new record level. At the same time, CO2 emissions were significantly reduced by a further 21%.
Adjusted EBITDA for the first nine months amounted to €4.0bn and adjusted net income to €1.6bn. The Offshore Wind and Onshore Wind/Solar segments, in particular, achieved significant increases in earnings. Overall, the Group result was down on the previous year, as expected, as earnings in the Flexible Generation and Energy Trading segments were lower, as forecast.
As of 30 September, RWE reported net debt of €12.2bn. Due to the growth investments, the leverage factor, i.e. the ratio of net debt to adjusted EBITDA, is likely to increase in the current financial year. However, it is expected to remain well below the self-imposed upper limit of 3.0.
