German energy major RWE AG (ETR:RWE) more than doubled its adjusted net income to EUR 3.38 billion (USD 3.66bn) in the first nine months of 2023 thanks to the growth in the Supply & Trading segment and strong power generation.
Adjusted EBITDA in the core business, comprising renewable energy, gas, supply and trading, surged more than twofold to EUR 5.66 billion in the period. The sharp increase reflects the contribution of the Supply & Trading segment where adjusted EBITDA skyrocketed to EUR 1.33 billion from EUR 194 million a year earlier. A significant rise was observed in the hydro, biomass and gas segment as the adjusted EBITDA reached EUR 2.4 billion driven by higher earnings from short-term power station dispatch and higher generation margins.
Earnings in both offshore wind and onshore wind and solar grew as new projects went into operation and the acquisition of Con Edison Clean Energy Businesses in the US added more power generation capacity. The performance of the segments was, however, dented by lower electricity prices and weaker wind conditions.
In the January-September period, the German energy major stepped up its investments spending a total of EUR 10.3 billion net on its Growing Green programme. The EUR-6.3-billion acquisition of Con Edison operations accounted for the bulk of it.
The investment spree added 5.7 GW to RWE’s portfolio. Currently, the group has 100 projects totalling 7.8 GW under construction in 10 countries.
The outlook, which was increased in July, was reiterated.
The table below provides details about RWE’s Jan-Sept performance and outlook for 2023.
Table source: RWE AG