Calm wind depresses EnBW’s profit

It is precisely the future business of renewable generation that is causing problems for the energy company EnBW.

On the one hand, wind conditions that were worse than usual on land and on the high seas meant that profit in the operating business (adjusted Ebitda) in the area of ​​”sustainable generation infrastructure” fell. In the first nine months it was seven percent less than in the same period of the previous year.

Sales increase, earnings decrease

On the other hand, income from thermal generation and trading remained well below expectations. Here the group recorded a decline of 18 percent.

Overall, EnBW reported sales of 18.7 billion euros for the first nine months of this year (previous year: 13.7 billion euros). The operating result melted from 2.1 billion euros in the same period last year to 2.0 billion euros. That corresponds to a minus of four percent.

EnBW is sticking to its forecast

According to the company, the ongoing Corona crisis did not have any significant impact on the operational business. In addition, EnBW remains confident that it will be able to maintain its earnings forecast for the current year as a whole. Then the operating profit should be around 2.8 to 3.0 billion euros. That would be an increase of two to seven percent compared to the previous year.

EnBW CFO Thomas Kusterer made only general comments on the current gas crisis. His company is also affected, he said.

No specific information on the price increase

At the same time, he referred to the long-term procurement strategy of his company, which could cushion strong price fluctuations in wholesale, especially for existing customers.

He did not provide any specific information on possible price increases, particularly for gas customers.

Fossil power plant park under renovation

EnBW’s fossil fuel power plant park is in the middle of the renovation. The company has registered Block 7 of its Karlsruhe coal-fired power plant for decommissioning by mid-2022 at the latest. It has not yet been decided whether it will have to remain on the grid as a reserve power plant.

The EnBW coal-fired power plant in Altbach (Baden-Württemberg), in turn, is to be converted into a gas-fired power plant. It should be completely carbon-free by 2026. In the future, only green gases such as hydrogen produced from renewable sources are to be used at the site. (The ZfK reported.)

E-mobility as a “long-term business field”

According to its own information, EnBW is making great strides in expanding electromobility. A fast charging station is added every day and a charging park with an average of 20 charging points per week, said Kusterer.

However, the business area is not yet making a profit. According to Kusterer’s assessment, things will not go that far until the middle of the decade.

Electricity storage subsidiary as a profit maker

The EnBW manager was satisfied with the development of the power storage subsidiary Senec. Last year the company sold 20,000 home storage systems, he reported. This year there are likely to be twice as many.

Senec thus played its part in ensuring that the segment, “Intelligent Infrastructure for Customers”, which is higher up, rose by 37 percent in the first nine months. In addition, the electricity and gas business at all sales companies developed positively compared to the same period in the previous year, said Kusterer. (aba)

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