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

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 “accelerated” energy transition. “Ultimately, we want to invest an average of 4.5 billion euros per year over the next few years,” said Thomas Kusterer, CFO of EnBW. “Around 80 percent of our investments will go to Baden-Württemberg and Germany.” 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. “Our strong investments pay off,” said RWE’s CFO, Michael Müller. The company had increased its power generation capacity by 6 gigawatts since the beginning of the year, resulting in a “significantly higher” production of renewable power. “This positive development is bound to continue,” Müller 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’s war on Ukraine due to coal supply contracts in 2022.