German utility RWE Group produced 107.1 billion kilowatt hours (kWh) of electricity in the first six months of the current fiscal year, 5% more compared to the same period a year earlier, partly due to more electricity produced from renewables, with new wind farms playing a key role.
Overall, RWE’s adjusted net income for the period amounted to EUR 598 million, up 10% year-on-year. This was mainly due to an extremely low effective tax rate of 8%, a one-off effect resulting from the capitalisation of deferred taxes in connection with the reorganisation of the RWE Group. External revenue dropped by 4% to EUR 23.9 billion.
The group’s EBITDA for the period fell by 5% to EUR 3 billion, while the operating result was down 7% to EUR 1.9 billion. This was primarily due to the trading business where, after a very successful start to the year, significant unexpected losses were recorded in the second quarter, the utility said.
At EUR 826 million, the RWE Group’s capital expenditure in the first six months of 2016 was 30% lower than the figure recorded in the equivalent period last year, partly due to the completion of the offshore wind farms Gwynt y Môr and Nordsee Ost in 2015.
RWE’s reorganisation continues to run according to plan. The group’s new subsidiary for renewables, grids and retail commenced its business activities on 1 April 2016. It is temporarily called “RWE International SE” and is scheduled to operate under its definitive name “innogy SE” from 1 September onwards.
Around 10% of innogy’s shares shall be listed on the market via a capital increase before the end of the year.
“At times, up to 1,500 people at RWE have been working on the Group’s realignment. Just six-and-a-half months after the Supervisory Board gave the go-ahead, the legal reorganisation has already been completed and the new brand has been launched. I am extremely proud of this accomplishment and would like to thank all those involved for their hard work and dedication,” Peter Terium, Chief Executive Officer of RWE AG, said.
Looking ahead, RWE still expects to record EBITDA of EUR 5.2 billion to EUR 5.5 billion, and an operating result of EUR 2.8 billion to EUR 3.1 billion in FY2016. Adjusted net income for the current fiscal year is projected to be between EUR 0.5 billion to EUR 0.7 billion.
The forecast for the performance of the group’s renewables division has remained unchanged.