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Poor wind conditions hit EnBW profits

Monday, 09 August 2021

Halfway through the 2021 financial year, due to temporary effects, EnBW Energie Baden-Württemberg AG reports a slightly lower operating result than in the first half of the previous year. This is expected to even out over the course of the year. Investment in growth projects, in areas such as renewables and electric mobility, rose 30% compared with the previous year.

With a workforce of 24,894 (+5.1%), EnBW generated revenue of €12.65 billion (previous year: €9.80 billion) and an operating result (adjusted EBITDA) of €1.48 billion, marking a decrease of 6.8% on the same period a year earlier (€1.59 billion). In the first quarter, the earnings shortfall had still been 13.8%. The lower earnings are mainly due to various temporary measurement effects and also to generally poorer onshore and offshore wind conditions than in the first half of the previous year. The full-year earnings guidance for 2021 remains unaltered. Adjusted EBITDA for the 2021 financial year is expected to be in a range between €2.825 billion and €2.975 billion, which is 2% to 7% above the previous year. The corona pandemic had no significant impact on the operating business in the first six months of 2021.

Relating to these developments, EnBW CFO Thomas Kusterer said:

After a fairly weak first quarter, we have caught up encouragingly in the second quarter. We are confident of attaining our earnings target for this year. But whether we finish more towards the upper end of our earnings corridor or possibly more towards the lower end will depend on how business develops in the months ahead. It is clear that, over the years up to 2025, we want to continue investing in growth areas, in expanding grids and renewables, in electric mobility and new products for our customers and in broadband and telecommunications. In the current growth phase especially, we will ensure that we are efficient and competitively positioned in every single area of our operating business.

Source: EnBW confirms full-year guidance at mid-year 2021 | EnBW

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