RWE: warns about 'significant' impact of Texas weather
(CercleFinance.com) - German utility group RWE on Friday warned that its profit could be hit by the severe weather conditions in Texas, expecting a "significant" impact on its onshore wind/solar business.
In 2021 the unit's adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) could be negatively affected in the range of a low to mid three-digit million euro amount, the energy company said in a statement.
Freezing temperatures in the south of the US have hindered the availability of electricity generation assets in Texas, and part of RWE's onshore wind fleet has been shut down because of icy conditions and grid issues, it added.
The extreme weather conditions have also impacted power prices, RWE pointed out, as high electricity demand from residential heating, in combination with lower production and plant availability, have led to higher prices.
Much of the problem is that RWE had sold parts of its expected production from wind turbines previously, meaning that the company had to purchase further volumes at high prices to fulfill its supply obligations.
The Frankfurt-listed shares were down 1.8% on this news on Friday morning.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
In 2021 the unit's adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) could be negatively affected in the range of a low to mid three-digit million euro amount, the energy company said in a statement.
Freezing temperatures in the south of the US have hindered the availability of electricity generation assets in Texas, and part of RWE's onshore wind fleet has been shut down because of icy conditions and grid issues, it added.
The extreme weather conditions have also impacted power prices, RWE pointed out, as high electricity demand from residential heating, in combination with lower production and plant availability, have led to higher prices.
Much of the problem is that RWE had sold parts of its expected production from wind turbines previously, meaning that the company had to purchase further volumes at high prices to fulfill its supply obligations.
The Frankfurt-listed shares were down 1.8% on this news on Friday morning.
Copyright (c) 2021 CercleFinance.com. All rights reserved.