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14 Nov 2023, 13:53
Jack McGovan Benjamin Wehrmann

EnBW, RWE rake in high profits in 2023 so far, highlight energy transition investments

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The large German energy companies EnBW and RWE both look back to a financially successful first nine months of 2023. EnBW made operating earnings (adjusted EBITDA) of 4.9 billion euros between January and September, better than expected. EnBW, which is primarily publicly owned, aims to use the profits to invest in an 鈥渁ccelerated鈥 energy transition. 鈥淯ltimately, we want to invest an average of 4.5 billion euros per year over the next few years,鈥 Thomas Kusterer, CFO of EnBW. 鈥淎round 80 percent of our investments will go to Baden-W眉rttemberg and Germany.鈥 Investments are planned renewable energy infrastructure, grid expansion and charging infrastructure for electric mobility, said the company. Earnings are 64.6 percent higher than in the previous year, largely due to the impact of the Russia-Ukraine war on energy markets in 2022. Developments in thermal energy generation and energy trading were also given as reasons for the increased profits.

Energy company RWE more than doubled its adjusted net income compared to the same period in the previous year to 3.4 billion euros. 鈥淥ur strong investments pay off,鈥 RWE鈥檚 CFO, Michael M眉ller. The company had increased its power generation capacity by 6 gigawatts since the beginning of the year, resulting in a 鈥渟ignificantly higher鈥 production of renewable power. 鈥淭his positive development is bound to continue,鈥 M眉ller added. The company said it particularly benefitted from the start of operations of important offshore wind farms and supportive weather conditions. It also highlighted the profitability of gas-fired power plants and with trading liquefied natural gas (LNG), after the company had struggled with the fallout of Russia鈥檚 war on Ukraine due to coal supply contracts in 2022.

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