RWE | RWE exceeds 2021 targets

RWE exceeded its targets for the fiscal year 2021, closing the year above 2020. It claimed that this was due to outstanding trading performance and higher earnings from conventional power generation. 

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) reached €3.65 billion (2020: €3.29 billion), which surpassed the upper end of the forecast range of €3.0 billion to €3.4 billion. Adjusted EBITDA from its core business, at €2.76 billion (2020: €2.73 billion) exceeded the forecast of €2.15 billion to €2.55 billion. RWE achieved an adjusted EBIT of €2.19 billion (2020: €1.82 billion) against an earnings forecast of between €1.5 billion and €1.9 billion. Adjusted net income of €1.57 billion also exceeded the outlook of €1.05 billion to €1.4 billion (2020: €1.26 billion). 

In its Offshore Wind segment, adjusted EBITDA totalled €1,110 million, slightly exceeding the prior-year figure of €1,069 million. Portfolio effects in the UK from the full consolidation of the Rampion offshore wind farm and the partial commissioning of the Triton Knoll wind farm were the main factors that compensated for poorer wind conditions year-on-year. For the current financial year, RWE expects to achieve adjusted EBITDA of between €1,350 million and €1,600 million.

In 2021, RWE once again invested heavily in the expansion of its green portfolio. Around €3.7 billion gross was invested in the core business. This is 12% more than in the previous year (2020: €3.3 billion). As of the balance sheet date of 31 December 2021, net debt had fallen to less than zero. At year-end, RWE reported net assets of €360 million.

RWE outlined that it expects to continue its positive earnings trend in 2022. The RWE Group’s adjusted EBITDA in 2022 is forecast to be between €3.6 billion and €4.0 billion; adjusted EBITDA in the core business is anticipated to be between €2.9 billion and €3.3 billion. RWE expects adjusted EBIT to range between €2.0 billion to €2.4 billion, with adjusted net income at €1.3 billion to €1.7 billion. The dividend target is €0.90 per share. The impact of the war in Ukraine is difficult to gauge and is not reflected in the outlook.