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RWE EBITDA down 6% to €4.4 billion

Staff writer ▼ | November 13, 2015
In the first three quarters of 2015, the RWE Group’s EBITDA was down 6% year on year to €4.4 billion and its operating result decreased by 9% to €2.6 billion, as expected.
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The main reason for this was the price-induced shrinkage of margins in conventional electricity generation. The Renewables Division recorded a marked improvement in earnings: the operating result earned by RWE Innogy rose by €251 million to €280 million year on year.

This was due in particular to the commissioning of the new wind farms Gwynt y Môr off the coast of North Wales and Nordsee Ost near Heligoland.

In the energy supply business, which contributed €594 million to the operating result throughout Europe (previous year: €605 million), gas volumes benefited from the cooler weather compared to the corresponding period last year.

A counteracting effect was felt due to substantial unexpected burdens imposed by operational and technical problems affecting energy supply in the UK.

Full consolidation of the Slovak energy utility VSE from the end of August had a positive one-off effect on the Group’s earnings. Prior to the change in accounting treatment, a revaluation of the investment revealed a hidden reserve of €185 million. Adjusted net income (previously: recurrent net income) was down 29% to €545 million.

In addition to the significant deterioration in operating earnings, the increased effective tax rate also came to bear. In the accounts for fiscal 2015, however, the effective tax rate should be well below the current level.

External revenue posted a marginal increase, rising to €35.4 billion (+0.3%).

With effect from 30 September 2015, the RWE Group’s net debt amounted to €25.8 billion, which was much less than as of 31 December 2014 (€31.0 billion).

The main reason for this was the disposal of RWE Dea, which had an impact of €5.3 billion, including the interest on the sale price. Further disposals had a total debt-reducing effect of €1 billion, such as the divestment of the grid connection of the new offshore wind farm Gwynt y Môr and a reduction of RWE’s stake in its Czech subsidiary RWE Grid Holding

The increase in the discount rates used to calculate pension provisions, reflecting the most recent developments in market interest rates, also contributed to the decline in net debt.