German RWE expands RE spend after weak Q1

German utility RWE saw its adjusted pre-tax earnings slump from €1.32bn in Q1 2020 to €883mn ($1.07bn) in Q1 2021, owing to poor wind conditions in Europe and the storms in Texas, the latter costing it some €400mn, it said May 12. Adjusted net income was €340mn, just over half the €614mn in the same period 2020.

All its core businesses reported reductions year on year except for supply and trading, which rose from €170mn to €189mn. The company did not explain this. Non-core coal and nuclear also rose, from €282mn to €328mn thanks to high power prices. But its on- and offshore wind and solar divisions together made just €178mn, down from €650mn the year before.

The company is nevertheless leaving its forecast adjusted group level EBITDA for the year unchanged at €2.65bn - €3.05bn, and is continuing to build wind-power and solar plants as well as battery storage systems with an installed capacity of 3.7 GW. More than 20 of these plants, accounting for a total installed capacity of about 2 GW, will start commercial operation as the year progresses, it said.

CFO Michael Mueller said the results were as expected and the company was "making good progress with the expansion of renewables and are strengthening our position as one of the world’s leading players," outpacing the competition, he said. "Hardly any company is changing as radically and as fast as RWE.”