Weaker Winds Deflate RWE’s Numbers

German energy company reported an adjusted EBITDA of EUR 297 million in the Offshore Wind segment in the first quarter of 2021, a 31 per cent drop compared to EUR 431 million reported for the same period in 2020.

A key factor here were wind volumes in Northern and Central Europe, which were well below the above-average high levels of the previous year, RWE said.

For the current year, RWE expects adjusted EBITDA of between EUR 1.05 billion and EUR 1.25 billion for the Offshore Wind segment, compared to EUR 1.069 billion reported for 2020.

In the first three months of 2021, RWE’s offshore wind farms produced 1,826 GWh of electricity, nearly 26 per cent less compared to 2,464 GWh of electricity generated at the company’s wind farms in the first quarter of 2020. The first quarter of 2020 benefitted from above-average wind conditions, RWE noted.

Lower generation was recorded across all of the company’s offshore wind portfolio in Germany, the UK, and Sweden.

RWE’s capital expenditure within the Offshore Wind segment amounted to EUR 724 million in Q1 2021, a 355 per cent increase compared to the Q1 2020 CapEx of EUR 159 million.

The increase was mainly due to the expenses related to the construction of the 857 MW Triton Knoll wind farm in the UK, and the option fee related to the latest UK seabed leasing round which was paid in advance.

RWE expects the CapEx for 2021 to be much higher than in 2020 when it reached EUR 2.285 billion.

A substantial amount of these funds will be spent on the construction of the Triton Knoll and Sofia offshore wind farms in the UK North Sea, and the Kaskasi wind farm near Heligoland in the German North Sea, the company said.