German utility RWE has reported an improved financial result in the latest quarter despite the adjusted EBITDA of onshore wind and solar having decreased by more than 20%.
In its preliminary financial results for Q1 2023, RWE said its adjusted EBITDA in the onshore wind and solar segment was expected to be €247 million (US$271.3 million), dropping from €318 million (US$349 million) in Q1 2022 or by 22.3%. The decline in earnings was mainly due to lower realised electricity prices. Additional earnings were recognised from the acquisition of renewable energy company Con Edison Clean Energy Businesses which has been fully consolidated since 1 March 2023.
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After the acquisition, the company’s US portfolio of solar PV and wind projects increased to 8GW. The newly created company emerging from the acquisition, RWE Clean Energy, is now positioned as the second-largest solar owner and operator in the US and the fourth-largest renewable energy company in the country. As part of the acquisition, RWE absorbed Con Edison CEB’s 24GW project pipeline of solar, storage and wind assets.
The company expects the adjusted EBITDA of onshore wind and solar to be in the range of €1.1 billion (US$1.21 billion) to €1.5 billion (US$1.65 billion) in 2023.
The company’s adjusted EBITDA for Q1 2023 was €2.8 billion (US$3.08 billion), up from €613 million (US$673 million) in the first quarter of 2022. For the entire 2023, group adjusted EBITDA is expected to be from €1.1 billion (US$1.21 billion) to €1.5 billion (US$1.65 billion). Moreover, the adjusted quarterly income was €1.67 billion (US$1.84 billion), increasing from only €2 million (US$2.2 million) year-on-year.
The increase in earnings was primarily due to higher earnings from international power generation in the hydro, biomass, and gas segment. The adjusted EBITDA of this segment in Q1 2023 was €1.18 billion (US$1.3 billion), increasing from €263 million (US$289 million) in Q1 2022, equivalent to a 374.5% year-on-year increase.