Economy & Politics

Despite Corona, EnBW sticks to its profit target

EnBW relies on wind power. Photo: dpa / Christoph Schmidt

The expansion of renewable energies gives the utility EnBW a boost.

Stuttgart – Energy supplier EnBW is aiming for a significant increase in operating profit this year despite the corona crisis. “We are concentrating our strengths on remaining on a stable course,” said CFO Thomas Kusterer when presenting an interim report. In the first six months of this year, sales fell slightly to around 9.73 billion euros, which is partly due to falling gas prices.

Many employees are in the home office today

By contrast, the operating result (Ebitda) adjusted for special effects increased by 24 percent to around 1.59 billion euros. This is primarily due to the expansion of renewable energies. The Karlsruhe company has commissioned two large wind farms in the North Sea. The bottom line, however, was that net profit fell by around a third to 184 million euros. The reason for this is a lower financial result, which reflects the weaker development of the securities markets. The outbreak of the corona pandemic presented the company with major challenges, but they responded to it at an early stage, said Kusterer. Around 10,000 of a total of around 23,700 employees worked in the home office today; additional health protection measures were taken for all employees who should be on site, such as in power plants or operating the grids. “We have had no operational restrictions so far,” said the CFO.

So far, Corona has had no significant impact on earnings

So far, the pandemic has had no significant impact on earnings. EnBW did not hit the factories in the south-west for weeks because the company had withdrawn from business with major industrial customers a few years ago. As the year progresses, however, the utility is preparing for the negative effects of the pandemic if, for example, commercial customers buy less electricity or if there is a wave of insolvency. Nevertheless, an increase in operating profit before interest, taxes, depreciation and amortization (EBITDA) of 13 to 19 percent is still targeted for this year.


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