{"id":119791,"date":"2021-08-12T16:36:29","date_gmt":"2021-08-12T16:36:29","guid":{"rendered":"https:\/\/fin2me.com\/?p=119791"},"modified":"2021-08-12T16:36:29","modified_gmt":"2021-08-12T16:36:29","slug":"low-wind-speeds-hurt-profits-at-two-of-europes-major-energy-firms","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/low-wind-speeds-hurt-profits-at-two-of-europes-major-energy-firms\/","title":{"rendered":"Low wind speeds hurt profits at two of Europe&#x27;s major energy firms"},"content":{"rendered":"<ul>\n<li>RWE&#x27;s chief financial officer stresses need to have broad range of assets in place to cope with potential fluctuations related to weather conditions.<\/li>\n<li>Danish energy firm Orsted states it will maintain its full-year guidance for 2021 even though lower wind speeds have affected output. <\/li>\n<\/ul>\n<p>In this article<\/p>\n<ul>\n<li><span>ORSTED-DK<\/span><\/li>\n<li><span>RWE-DE<\/span><\/li>\n<\/ul>\n<p>The chief financial officer of German utility RWE on Thursday acknowledged the importance of weather to its renewables segment, as the company reported &quot;much lower&quot; wind volumes in Northern and Central Europe for the first half of 2021.<\/p>\n<p>In an interview with CNBC, Michael M\u00fcller stressed the need to have a broad range of assets in place to cope with potential fluctuations related to weather conditions.<\/p>\n<p>&quot;I think what you need to do is balance your portfolio,&quot; he said. &quot;So, have a portfolio across different technologies \u2026 be it onshore, offshore, or solar or storages, and also across regions.&quot;<\/p>\n<p>&quot;And what we have seen in the first half is there was poorer wind in Europe but at the same time there was stronger wind in the U.S.&quot; <\/p>\n<p>&quot;So our idea is to have a balanced portfolio. But clearly, if you&#x27;re a renewables player, you are dependent to some degree on weather conditions.&quot;<\/p>\n<p>For offshore wind, the Essen-headquartered firm&#x27;s adjusted earnings before interest, taxes, depreciation, and amortization came in at 459 million euros ($538.5 million) in January to June 2021. This compares to 585 million euros for the same timeframe last year.<\/p>\n<p>Its onshore-solar segment also took a knock, reporting a loss in adjusted EBITDA of 42 million euros. <\/p>\n<p>Referencing this part of its business, RWE said: &quot;The extreme cold snap in Texas led to an earnings shortfall of around \u20ac400 million.&quot;<\/p>\n<p>&quot;Additional burdens resulted from below-average wind conditions at onshore wind farm locations in Northern and Central Europe,&quot; it added.<\/p>\n<p>Adjusted EBITDA for the whole group in January to June 2021 came in at 1.75 billion euros, down from 1.83 billion euros in the same period a year earlier. Adjusted net income grew, however, hitting 870 million euros.<\/p>\n<p>Even with the above challenges, RWE described the first half of 2021 as being &quot;very good&quot; financially. &quot;For fiscal 2021, RWE now expects to achieve adjusted EBITDA of between \u20ac3.0 billion and \u20ac3.4 billion at Group level, which is \u20ac350 million higher than forecast in March 2021,&quot; it said.\u00a0<\/p>\n<h3>Orsted maintains guidance despite low wind speeds<\/h3>\n<p>Thursday also saw Danish energy firm Orsted state it would maintain its full-year guidance for 2021 even though it flagged that lower wind speeds had affected output in the first six months of the year.<\/p>\n<p>In a statement, Orsted said operating profit for the first half of 2021 came in at 13.1 billion Danish krone (around $2.1 billion), a 3.3 billion krone jump compared to the same period in 2020.<\/p>\n<p>Nevertheless, the firm experienced challenges related to wind speeds. &quot;Earnings from our offshore and onshore wind farms in operation were DKK 0.3 billion lower compared to the same period last year,&quot; the company said.<\/p>\n<p>&quot;The increased generation capacity from new wind farms in operation was more than offset by significantly lower wind speeds across our portfolio,&quot; it added. <\/p>\n<p>Breaking things down, Orsted&#x27;s investor presentation said wind speeds in the second quarter of 2021 came in at 7.8 meters per second, which was &quot;significantly lower than normal wind speeds&quot; of 8.6 meters per second. <\/p>\n<p>Looking ahead, the company said it maintained its full-year EBITDA guidance of 15-16 billion Danish krone but added that it was expecting an &quot;outcome in the low end of the guided range.&quot;<\/p>\n<p>This was due to the lower wind speeds as well as &quot;warranty provision towards our partners related to cable protection system issues at some of our wind farms.&quot;<\/p>\n<p>Orsted is a major player in wind energy. In offshore wind alone, its installed capacity amounted to 7.6 gigawatts at the end of 2020. <\/p>\n<p>Source: <a href=\"https:\/\/www.cnbc.com\/2021\/08\/12\/low-wind-speeds-hurt-profits-at-two-of-europes-major-energy-firms.html\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>RWE&#x27;s chief financial officer stresses need to have broad range of assets in place to cope with potential fluctuations related to weather conditions. Danish energy [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":119790,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Low wind speeds hurt profits at two of Europe&#x27;s major energy firms - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/business\/low-wind-speeds-hurt-profits-at-two-of-europes-major-energy-firms\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Low wind speeds hurt profits at two of Europe&#x27;s major energy firms - Fin2me\" \/>\n<meta property=\"og:description\" content=\"RWE&#x27;s chief financial officer stresses need to have broad range of assets in place to cope with potential fluctuations related to weather conditions. 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