March 26 (Renewables Now) – German electric utility EnBW Energie Baden-Wuerttemberg AG (ETR:EBK) has delivered its 2020 earnings target of EUR 2.4 billion (USD 2.6bn) one year earlier, with renewables achieving a substantial 60% growth in 2019.
The company reported on Thursday adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of EUR 2.43 billion, which rose from EUR 2.16 billion in 2018 and stood within the full-year guidance range of EUR 2.35 billion to EUR 2.5 billion.
For 2020, EnBW forecasts an even higher adjusted EBITDA of EUR 2.75 billion-2.9 billion regardless of the coronavirus pandemic, which CEO Frank Mastiaux says has not yet had any significant impact on the company’s operating business as of today. He noted though that delays on individual projects are possible, depending on the duration and intensity of developments going forward.
“We expect a further significant increase in earnings most of all in Renewable Energies thanks to Hohe See and Albatros, our new offshore wind farms,” commented CFO Thomas Kusterer, adding that further new-built and acquired onshore wind farms and solar parks will also have a positive contribution.
In the Renewable Energies segment alone adjusted EBITDA is seen at EUR 825 million-925 million. Meanwhile, earnings are expected to be EUR 1.3 billion-1.4 billion in the Grids segment, EUR 425 million-500 million in the conventional Generation and Trading segment, and EUR 325 million-400 million in Sales.
More details about EnBW’s financial performance in 2019 are available in the table below.
|Figures in EUR million||2019||2018|
|— accounted for by Sales||294.3||268.4|
|— accounted for by Grids||1,311.2||1,176.9|
|— accounted for by Renewable Energies||482.8||297.7|
|— accounted for by Generation and Trading||383.8||430.8|
|— accounted for by Other/Consolidation||-39.6||-16.3|
|Adjusted group net profit||786.8||438.3|
|Group net profit||734.2||334.2|
The company blamed the 9.9% decrease in external revenue on lower trading volume, combined with lower prices in the gas sector. At the same time, it attributes the 62.2% surge in the earnings of renewables to contributions from the Swedish onshore wind farms it acquired at end-2018 and the overall improvement in wind conditions in Germany.
EnBW will propose a dividend of EUR 0.70 per share for 2019.
(EUR 1.0 = USD 1.096)