EnBW experiences a substantial drop in earnings, recording a 23% decrease in profit.

EnBW Reports 23% Profit Drop Amidst Transition to Renewable Energy

EnBW, the third-largest energy supplier in Germany, has reported a 23% drop in profits for the year 2024, falling from 6.4 billion euros in 2023 to 4.9 billion euros. The decline comes as both Eon and RWE also reported profit declines in recent weeks, reflecting the ongoing transition towards renewable energy.

Despite the profit drop, EnBW's CEO, Georg Stamatelopoulos, described the 2024 result as solid and expressed hope for adjustments in energy policy. The company now accounts for around 59% of the installed generation capacity with renewable energies, having achieved its self-imposed target of over 50% a year earlier than planned.

The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for EnBW dropped due to normalized price levels for electricity and gas at the wholesale markets. The adjusted consolidated profit fell by nearly 46% to approximately 1.5 billion euros.

To secure future financing, the company is exploring options, potentially involving a capital increase of around three billion euros. However, the decision for a potential capital increase is still pending.

EnBW serves over 5.5 million customers and employed around 30,400 people at the end of last year, an increase of about 6% from the previous year. The company invested around 6.2 billion euros, nearly 30% more than in 2023, mainly in a large offshore wind farm in the North Sea and the expansion of power grids. CO2 emissions in power generation fell by 15% compared to the previous year.

Stamatelopoulos emphasized the need for a demand-oriented and efficiently implemented transformation of the energy system, including the construction of new hydrogen-capable gas power plants. He also highlighted the need for quick and clear answers regarding the amendment of the Power Plant Security Act from the new federal government, a matter that the entire energy industry is currently awaiting clarification on.

The state of Baden-Württemberg and the OEW consortium of nine Swabian districts each hold nearly 47% of the company. The federal government's stance on energy policy and the Power Plant Security Act is expected to have a significant impact on EnBW's future operations and profitability.

EnBW experiences a substantial drop in earnings, recording a 23% decrease in profit.