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EnBW reports 45% drop in 2018 profit

The first foundation at Hohe See. Source: Twitter, @EnBW.

March 28 (Renewables Now) - German utility EnBW Energie Baden-Wuerttemberg AG (ETR:EBK) today posted a 44.7% year-on-year plunge in adjusted group net profit for 2018, a year during which its renewables segment contributed less to its operating result.

On an adjusted basis, the bottom line fell to EUR 438.3 million (USD 491.8m) from EUR 793.3 million, though the prior year result was substantially increased by disposals of securities in readiness for the payment to the nuclear phase-out commission fund KFK, as explained by EnBW.

On the other hand, the operating result, or adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), went up by 2.1% year-on-year to EUR 2.16 billion. This increase was achieved even though the Renewable Energies division contributed EUR 297.7 million, or 10.3% less than in 2017. EnBW noted that in 2018 it faced both below-average wind levels and low water levels, which affected output from offshore wind farms and run-of-river power plants.

“The key point is that we were once again able to improve our operating result in 2018, after having achieved financial turnaround in 2017,” commented CFO Thomas Kusterer. The adjusted EBITDA result for 2018 was within the group’s guidance for an improvement of 0-5%.

The table below gives more details about the group's financial performance in 2018.

Figures in EUR million 2018 2017
External revenues 20,617.5 21,974.0
Adjusted EBITDA (loss) 2,157.5 2,113.0
-- of which from Sales 270.6 330.0
-- of which from Grids 1,176.9 1,045.9
-- of which from Renewable Energies 297.7 331.7
-- of which from Generation and Trading 428.6 377.1
-- of which from Other/Consolidation (16.3) 28.3
Adjusted Group net profit (loss) 438.3 793.3
Group net profit (loss) 334.2 2,054.1

This year, EnBW expects to record adjusted EBITDA of EUR 2.35 billion-2.5 billion, which is the equivalent to year-on-year increases of 9% to 16%. The Grids and Renewable Energies segments are expected to contribute the most.

“Our EnBW 2020 Strategy target of regaining our 2012 operating result – that is, EUR 2.4 billion – remains firmly in place. We even expect to exceed this ambitious target in 2020,” the finance head said.

The board plans to propose a dividend of EUR 0.65 per share at this year’s annual general meeting.

Also today, EnBW announced it has been selected as the exclusive bidder in the competition to take over French group Valeco, which operates 276 MW of onshore wind farms and 56 MW of solar parks.

(EUR 1.0 = USD 1.122)

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