German utility EnBW has reported a net loss of €13.6m ($14.57m) for the third quarter (Q3) of 2023, a 97.9% improvement from a €651.1m loss in the same quarter of the previous year.
The company’s earnings before interest and taxes (EBIT) were €118.9m in the quarter, compared with a negative €436m a year previously.
Quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at €530.6m versus a negative €30.3m in the previous year.
EnBW generated revenues of €7.9bn between July and September 2023, a 35.4% slump from €12.3bn in Q3 2022.
The cost of materials fell 32.3% to €6.1bn from €9bn over this period, while personnel expenses rose 8% year-on-year to €654.9m.
The company’s adjusted net profit in the nine months to September 2023 more than doubled to €2.3bn from €1.1bn in the previous year, benefitting from a strong performance by thermal generation and trading.
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Adjusted EBITDA surged 64.6% to €4.9bn from €2.9bn, while adjusted EBIT climbed to €3.7bn from €1.8bn.
Sustainable generation infrastructure was the key growth contributor, with the segment’s adjusted EBITDA soaring 82.4% to almost €3.5bn.
This growth has been attributed to a rise in wholesale prices for generated electricity, and the lack of negative effects associated with the suspension of Russian gas supplies.
The utility earned revenues of €34.7bn for the first nine months of 2023, a 12.2% fall from €39.4bn a year earlier.
EnBW chief financial officer Thomas Kusterer stated: “Our good earnings in the first nine months secure our growth investments in the accelerated implementation of the energy transition. Ultimately, we plan to invest an average of €4.5bn per year over the next few years.
‘Most of this will go into the expansion of renewables, the grid infrastructure and charging infrastructure for electric vehicles and climate-friendly, low-carbon dispatchable generation. Around 80% of our investments will be made in Baden-Württemberg and Germany.”
The company has now lifted its 2023 adjusted EBITDA outlook to between €5.9 and $6.5bn, from an earlier forecast of between €4.7bn and $5.2bn.