German energy firm EnBW ups earnings by 60%; decline expected in 2024
EnBW, Germany's third-largest energy supplier, increased its operating result - or adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) - by some 60% to almost €6.4 billion ($6.9 billion) last year.
The surge was mainly due to an increase in thermal generation - that is from coal and gas - and trading.
Due to increased market prices and fluctuations, the electricity volumes generated were sold at significantly better conditions compared to 2022, the Karlsruhe-based company announced on Wednesday.
A decline to between €4.6 billion and €5.2 billion is expected for this year.
"The background to this is that the volatility on the markets is decreasing and we assume that we will sell the electricity generated in our plants at lower prices than was the case in 2023," chief financial officer Thomas Kusterer explained in a press release.
The very good result for 2023 in thermal generation and trading cannot simply be extrapolated into the future, he added.
The new chairman of the board of management, Georg Stamatelopoulos, explained that EnBW will once again significantly increase its investments in the implementation of the green energy transition in the coming years due to the very good result.
Gross investments of €40 billion are planned by 2030, some 90% of which will be in Germany. "This makes EnBW one of the largest investors in the implementation of the energy transition in Germany."
Stamatelopoulos took over as chief executive almost three weeks ago after his predecessor Andreas Schell left the group after less than a year and a half due to disagreements with the supervisory board over corporate strategy.
