RWE’s operational performance in the fourth quarter of fiscal 2020 exceeded expectations. In particular, Supply & Trading performed far better towards year end than assumed. Overall, this resulted in an outperformance of the outlook for fiscal 2020, based on preliminary figures. RWE Group’s adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) is expected to reach €3.2 billion and therefore to pass the upper end of the forecast range of €2.7 billion to €3.0 billion. Adjusted EBITDA in the core business is assumed to be €2.7 billion above the upper end of the forecast range of €2.15 billion to €2.45 billion. Adjusted EBIT for 2020 is expected to be €1.8 billion, against earnings forecast between €1.2 billion and €1.5 billion. Adjusted net income is expected to reach €1.2 billion, above the guidance of €0.85 billion to €1.15 billion.
“We confirm our dividend target of €0.85 per share for fiscal 2020 and we will propose this to our Annual General Meeting on 28 April 2021, which will be held virtually”, said Markus Krebber.
Performance in the core business per segment (preliminary earnings)
- Offshore Wind: Adjusted EBITDA to increase by 11% to €1,069 million, compared with the pro forma result for previous year, which can be largely attributed to very good wind conditions in the first quarter of 2020.
- Onshore Wind/Solar: Adjusted EBITDA to improve by 7% to €472 million, compared to pro forma result 2019, which is mainly due to new assets taken into operation. Because of the Covid-19 pandemic, the commissioning of some plants has been delayed, in particular in the US.
- Hydro/Biomass/Gas: Adjusted EBITDA to be at €621 million, thanks to a very good performance in the end of 2020, mainly on the back of a strong day-to-day optimisation of the power plant dispatch. Year-on-year lower earnings to be recorded, in particular given a one-off payment from UK capacity payments in 2019.
- Supply & Trading: To record an adjusted EBITDA at €539 million, due to an excellent performance and very strong year-end. However, earnings year-on-year to be below the exceptional high level in 2019.
Next to RWEs core business, Coal/Nuclear showed strong increase compared to 2019 with an adjusted EBITDA expected at €559 million. This was in particular due to realised higher generation margins. Coal generation capacities will further decrease: RWE decommissioned its remaining hard coal-fired power stations in Germany at the end of 2020. Moreover, generation capacities based on lignite will be further reduced in line with the lignite phase-out act after the closure of the first unit end of last December.
All figures are preliminary. Final figures for fiscal 2020 will be released as planned on 16 March 2021.