The RWE Group’s adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortisation) for fiscal 2022 amounted to €6.3 billion. In addition to capacity expansion in renewable energies, improved market conditions in power generation in terms of price levels and power plant deployment as well as a very strong performance in the trading business were key drivers.
Adjusted EBITDA in the Offshore Wind segment reached €1.4 billion in 2022, compared to €1.1 billion in 2021. This was partly due to the commissioning of new capacity. Although wind levels improved compared to the low levels of the previous year, they were still below the long-term average.
For the current 2023 financial year, RWE expects earnings for this segment to be between €1.4 billion and €1.8 billion. The first full year of operation of the new Triton Knoll and Kaskasi wind farms will have a positive impact. In addition, RWE expects higher deployment of its plants due to normalised wind conditions and higher realised electricity prices. This is counteracted by burdens from electricity revenue caps.
In fiscal 2022, adjusted EBITDA in the Onshore Wind/Solar segment reached €0.8 billion, compared to €0.3 billion in 2021. Here, too, additional capacity and more favourable wind conditions had a positive impact, although, as in the Offshore Wind segment, wind levels were again below expectations. In addition, the previous year’s earnings included substantial one-off burdens due to the extreme cold snap in Texas in February 2021.
For 2023, RWE expects earnings for this segment of €1.1 billion to €1.5 billion. The business of Con Edison CEB, which has been fully consolidated since 1 March 2023, as well as new-build facilities, will contribute to the increase in EBITDA. As in the Offshore Wind segment, RWE expects normalised weather conditions and higher realised electricity prices. This is counteracted by burdens from electricity revenue caps.
Last year, RWE invested €4.4 billion net, which was 50% more than in the previous year. The largest investment was in the German offshore wind farm Kaskasi, whose 38 turbines already feed electricity into the German grid, and the Sofia wind farm in the UK North Sea, which RWE is expecting to complete in 2026. In addition, there was the one-off lease fee for a site in the New York Bight, on which RWE intends to build offshore wind turbines as well as the investments in new onshore wind farms and solar plants. In total, RWE completed and commissioned over 30 facilities last year.
For 2023, adjusted EBITDA at Group level is expected to be between €5.8 billion and €6.4 billion; in the core business, it is expected to be between €4.8 billion and €5.4 billion. RWE estimates an adjusted EBIT of €3.6 billion to €4.2 billion and an adjusted net income of €2.2 billion to €2.7 billion.
