RWE Aktiengesellschaft (RWEOY) 12 Nov 202020 Q3 Earnings call transcript

Welcome to the RWE Conference Call. Markus Krebber, CFO of RWE AG will inform you about the developments in the first three quarters of fiscal 2020. I will now hand over to Thomas Denny.

Thank you, Jesse, and good morning everyone from us here in Essen. Thank you for joining us to discuss RWE's results for the first nine months of the year. much our very still is part life. of COVID-XX

continue all I'm Krebber, I've joined we before will hope welcome by got well. our are you we presentation here, the Markus So a here surprise session. a doing our designated start CFO, with a Müller. guest with Q&A shortly warm Also, who to CFO, Michael

the forward to to And to will and seat then, over from Thank to on all. the getting very I looking pleased investor and I'm very in now for today. here already hello will results, everybody the my After I'm be attend several Thomas, role. you know you role driver's you, Markus and I I'm meetings with year new Between forward these the to really phone. looking full take calls. and be much will

remember pro order Thanks, started, get Michael. focuses please like-for-like. XXXX in presentation now for the before And to figures our on compare we forma

So full on year the of are for over update assets adjusted Markus third nine quarter first with for in EBIT E.ON last from to EBITDA and XXXX. XXXX. I taken now included And the this, hand the months the year in over

We for The operational billion. on well our good EBITDA of has net approximately end Yes. successfully redeem the track a this, to beginning guidance. of at seen the increased book stands first target million dividend of upper of a to core €X.X financial we everyone. financial our are hybrid X% I at year. months speak September, call more the expectations middle €X.X guidance capital adjusted with we call confirm billion pandemic. The be reaffirm exercise adjusted and year-on-year, €X basis to building Group's this at a billion. Thus, With via pro date redemption, we forma two at have We to safe the XXXX flexibility our performance QX impact of warm accelerated bonds The improved on enables really accelerate all a of to increase nine year concluded right our Thank the at you the our business its growth. in to and outstanding. bond that million Renewable would August. the debt EBITDA long-term the October additional in billion. end and XX. first been now for the €X.XX and the hybrid adjusted per announced hope welcome Thomas, full us the all and on On to business €XXX mid we a in share €X.X COVID-XX date At an After the EBITDA It's have you, sound. minor first and and and the to we value good to overall you combined from €XXX is only are of stands

further French is development planned. gigawatt more market. has we RWE side, the employees, joined renewals. team gives Wind the mainly closed M&A options acquisition X.X progressing into in is Nordex Solar. pipeline France This of in development broad The great the which On based as have succession and XX us The Onshore of and a entry for than growth Board's

Ladies key looking equipment very we is and know you and Nanna eligible Michael first XXXX of with Officer CFO; that are our investments X, strategy, Pathway that as our and the and nine AG, of and year. and our part on them I Resource for forward report the in has Board gentlemen, successful pleased Seeger, to taxonomy Chief RWE's under great I'm I'm to designated Müller, targets much property As in Human the a a ESG work to proposed Initiative of EU Climate RWE of future the executive this this November CapEx joined of for our progress new plan Also, of amount line acknowledged the Paris confirmed Agreement. protection the some with green have months climate front. Transition plant XX% company. for ambitious

get submitted Together, the to reduction Speaking Initiative with of ambition assessment. the is our targets quickly. which, we SBTi for Based Targets to have emission this Science done our detailed

you the We engagement but increased with Last, not our will least, we Global posted. keep UN further Compact.

the Global to Sustainable We UN Compact Development CFO founding are Taskforce the member Goals. committed a of

more first SDG developed UN integrated Finance the As now And from on than with such the page Investment. companies around principles finance for backed sustainable principles for to and have XX X. together the on world, financials we by

scaling some months. from is delivered XXX XXX capacity Solar additions capacity of and the result today's our end, point in as come business year and onshore division very good I business conditions megawatts the quarter As Solar. and good wind After Onshore and core payments. performance Canada additions is, on benefited farms based solar resumption the gentlemen, for Cranell division and to Ladies due good Wind weather said strong nine U.S. a by a to by capacity all view. gigawatts. earlier, EBITDA billion up in segments. capacity GB increased from year-on-year farm the €X.X was And months increased X% and our of Wind/solar Broadly due to adjusted Trading megawatts in And the Onshore speaking, good Offshore & planned. Hydro/Biomass/Gas of the the in the capacity to from nine and from of online first The approximately Supply performance first in further Wind installed X.X Spain,

daily. been targets quickly taking environment challenging has of secured our Further lease offshore regard U.S. pro period our pipeline, for towards for With the in the projects development We the actually XXXX we are the to decision COVID-XX XXXX, U.K. about expansion after approximately for managing by progress as megawatts to XXX well megawatts decade, on XXX from the rata. agreements as options of our growth relating due for made to investment changing mainly end CODs

In addition, with operational XXX-megawatt will of site. our Rampion seabed the we development continue the at option now remaining

So move will steps is forward through in X.X this cycle. that overall division the now the Offshore gigawatts development of the

Let's page move on to an of update construction X. program our on

are as We due plans. call, in good adjusted U.S. side, HX QX that explained progress to delays at the from have made apart consequently some commissioning and construction COVID on mainly related I mostly

expect be euro and million result we a to the As overall to of amount medium impact small double-digit Onshore this Wind Solar. year this, for financial at

at individual QX project starting Kaskasi all project, export preparations according have with look continuing foundation long closer and schedule. a in will our Triton the site, Offshore. level, cables, XX In XXXX. installed take At the let's going to to Now XXX-kilometer start The Knoll are plan. construction and been work

capacity feed by Power the Springs, with a its our the is XXX the year-end. project is and energy be to business. fully Onshore into state expected on is Moving Pool. and commissioning Boiling The first project commissioned Southwest to the in of in Oklahoma, megawatts, will of phase

Raymond commissioned this commissioning started and be with project, Big has XXX at onshore expected fully the East year. our is to of megawatts, Raymond end Now wind the its of

of Raymond caused commissioned to turbines Ohio, Scioto a Hurricane are The state turbine some is coupled the project hour been testing has now pre-commissioning Georgia some with battery. ramp West site Park deliveries Farm, in to The southwest in for At grid all quarter in started. Raymond Ridge two of project XX-megawatt has year. the West. ready erected the up Besides located The first the XXX-megawatt at and have solar delays next be project be due almost their part Solar our the other Hanna delayed. The COVID-XX, the the to but efforts. teams Limondale Hickory mobilization at recently commissioning started will

in the full next expect QX happen commissioning We year. to

With XXX another now megawatts we the we can overall the So, to that, quarter. will in current individual of the on details divisions. move online bring

between expect conditions increase of amounts more bandwidth €XXX approximately months. the of million division the upper even the increased first the Onshore various in million weather from billion. first totaling million markets XXX from and to of an adjusted year-on-year. in Our this field earnings as of driven negative in of quarter, are were work. higher fourth Offshore an than assuming EBITDA thanks strong higher XX%, normalized mainly €XXX September. quarter of outlook The power wind the for have we cash weather year-on-year, X% in amounted year. year-on-year are though investments first we to year. is Value development Europe €X.X Wind/Solar be European confirm end at the average third in Wind offshore the well conditions. adjusted drivers an quarter Overall, and to Overall, this the division and the earnings Year-on-year, and seen in Gross division The it million speeds in sees winds, U.S. €XXX the to above first Triton the construction an are capacity in of and in Knoll the realized also €XXX typically half nine course unfavorable EBITDA the prices almost quarter by wind as months and nine increase during we megawatts

result, were lower As the positions expected. generation of earnings a our than open slightly

expect small effect For amount. the euro year, to be we a this million full double-digit

at €XXX the amounted COVID million, Hydro/Biomass/Gas the and year-on-year €XXX but are confirm of division bottom lower the delays we given to year, aforementioned capacity guided levels. at price million full end as as higher expect Earnings million the the the For well €XXX effects of to British related mostly the payments. from thanks to power to range division the to outlook

plant which already end million to co-firing from for small of million in in of we expect the the division, but to the biomass the impact the Overall, reported middle this to of power million to the the bottom euro €XXX guidance end is year at €XXX until range. medium of November amount. fire double-digit at for an XXXX. caused the the expected financial The May, the August, to interruption last As confirm we Eemshaven full

confirm prices division, earnings good year in at slightly the average the above gas the third the the to upper Supply in million. so Earnings business. on and let's business, from core €XXX €XXX on outlook division. wholesale for range. After To gentlemen, result up, and move We This realized the performance back of This on nine seen months quarter plan weaker to results far. is from €XXX a of division's the the expect million due for and very the we updated the in higher production be on confirm Nuclear the Trading improved and this having we million the have the €XXX full the system, and outlook half trading to the implementation adjusted EBITDA performance Moving the remain in the to reported particular the million a excellent plan lignite Coal & performance implications to needs accelerated of year. EBITDA to is that the end in to quarter. considered. to first and Ladies strong due increased due LNG a an strong fourth Adjusted division. Nuclear contributed of amounted be now and to Coal to sum of which the

E.ON over the adjusted the million of end on to the amounted with in net With line tax a with result mid-term from flow general the operating the that including €XXX cash special September are We've of not group. financial effects included. XX. shows that, provisions received Utilization adjusted income, earnings to expected in at level on The items million, for group. to debt in is adjusted rate dividend the €XXX high the net at operating minus page to out on of QX. the and of for drivers operating Adjustments adjusted September, down tax applied from nuclear The time. impact flow cash adjusted timing activities. tax on XX% approximately the the thanks of negative €XXX which the to to Moving million QX and amounts end EBITDA one-off balance

up as provisions a as financial billion by EBITDA months, and capital. mainly of market to they the well XXXX, as utilized is are view As million the in British €X.X we operating as XXXX high financial capital the debt. cash operating consider you cash adjusted refinanced well nine in in remember, nuclear a After a inventories. working went effect as of when the of adjusted payment the we positive flow the as received this flow the €XXX driven are QX from capacity by working reduction gas of which for Change

in this same expect we XXXX, positive this year -- line the remain full for the For item to reasons.

development. This effects €X.X many details operating adjusted decreased debt due billion. debt to to by of flow capital cash the roughly roughly activities billion. hedging on the Turning from €X.X high increase is and €X to the Timing the net Net billion. the COX-related

the change by rates discount roughly million environment. lower is from driver current in Another provisions market resulting €XXX compared pension given year-end to the

With the hybrid Also will the purchase be closing net development Nordex have the of X.X redemption will bond €XXX the the of QX price million €XXX net impact debt of debt. of acquisition roughly gigawatt the reflected in a million. of pipeline,

well expect debt the to below EBITDA. we year-end, net be three core For times factor leverage to adjusted

on year fiscal moving to Finally, XXXX. the outlook for

between the and EBITDA outlook and business billion out we billion for the €X.X will EBIT confirm €X.XX Group €X.X €X.X and come will billion. said, for range billion. billion Adjusted between already year adjusted core I €X our between As for this EBITDA RWE to adjusted €X.XX billion

adjusted both of we expect the upper EBIT, adjusted guidance. to EBITDA the results at For see and end

adjusted for billion. €X.XX €XXX guidance is million income Our net to

We end fiscal middle to happy is €X.XX expect range for With unchanged share I to XXXX. due I'm remarks results now dividend year up one-off this, it in financial The conclude the my at the in QX. your target of in negative the per questions. take to and the

please Markus. Instructions] Q&A [Operator Jess, you, start Thank session. the

The ahead. of Instructions] you. first Please, the from Thank line Sachs. from [Operator Goldman Alberto comes question Gandolfi go

Thank morning. to please. two I'll you, and stick good questions

yet path to bridge one November, you towards and noticed The secure have XXXX. mid-November megawatts first to only its that XXX from is that I've XX-gigawatt the your

don't months picture short could question exceed given to have of goal? are be what's full gigawatts. the So wonder And now from to we about Nordex many to to projects, with weeks six construction nor little XX, not discovered time to the XXXX skip income, net of time confidence I'm until here and but say a going offshore pipeline bit on for we the construction expected of XX integration for you nine I of finding XXXX to going bigger let's stick of I'm degree wind begin capital. XXX solar year the Christmas Because to that the actually megawatts? seem XX ago because auctions those

with auctions XX, are was the East obviously I us, XX regions regions. the not exposed all bid months, XX of So but to into? to can able next to you're to you could And you U.S. expected the so wondering going the to maybe you disclose in Coast, us the if which perhaps, be give maybe are those of that seabed come in

those Just Thank out So come XXXX, XXXX, you. about of to next limit? of the see about you bidding you CapEx it? And to? going trying year? on I from what how for mean, to that XX projects figure most of what's gigawatts can you all will XXXX, XXXX the think trying considering stops the to in win you're auctions be trying

the for Thanks Alberto. question. morning, Good Yes.

we first to that are gigawatt? the can reach I we about very one The XX confident how confirm confident that level. are

said plus update confidence achieve per to too stick but XX.X, the I high then right? can that that. update target year, So XXX-megawatt we targets. have speculate I before, said XX very enough which Nordex now, we pipeline you to -- to We mean interim the and is As brings around that where now probably to but the not early gigawatt it's give

I is side, because different talk auction look the numbers On for options. up about mean difficult, you sometimes auctions adding

it's seabed lease a auction. Sometimes

it's a Sometimes tender. central

CfD auction. it's Sometimes

we know It's competitive think the because tenders we're all in where the to And fits days. policy. Europe. cautious participate our successfully which more entered. Korea mean be far It's it's know three that are and regions. bit And Japan, U.S. have we it will have you we the going named to so early being markets we you But where we not I So Korea Asian Taiwan. a is and

is U.K. also Taiwan. in CfDs, CfD now seabed Japan reluctant lease But auctions up we So for is tenders, the to this bid mean something are we commit is these of in you you But But central where transparent. upcoming I next these auctions capital. actually get and now a bidding agree concern point the time. a the in bit right financing think nothing in marketable. processes, you have at if all And course about That's I'm that not have auction add when projects, the where and to I

You can find partners bid even later or something. with partner and a do you

a not is that So, constrict.

projects ready think limit So, other you no in process. competitive having I than think the is and are there

So, to of in expect us many you can these auctions. participate

you. Thank

Alberto. Thanks,

please? question Next

Please, question comes UBS. The go from line Sam of ahead. from Arie next the

you Thank for always. presentation Hi, good the morning. as

of from side. sort two my ones Just very straightforward

whole simple. very straightforward, the is it think, presentation keeping so I just

about of earlier EU think on, contract some get of updating of in when those with of I the a numbers. that that the update the the kind in it can a been sense we of I we the sense if the pipeline hasn't Have process of contract minute? then And have renewables size sort size got past I'm competitors pipeline on signed? draft you. signed now approvals? the you've summer. coal any just secondly, and saw you the And wondering, at yet. of are your Thank been talked you you the us for might some of if believe, where have give

questions. Yes. mean, I Sam thanks you. I one, to have on the disappoint for first the

We quarterly giving are the not updates pipeline. on

on then. next the update year, pipeline an update full-fledged get will a You

expected coal year. to end side, unit this close yes, of are the we On first the

are for preparing happen. passed we parliament. German has law confident because the that are will The that We

next the within We are the expecting contract with the weeks. to German government sign

the European is and you It's of update German question, between the the Government not an cannot Commission. a that. we because are EU part give On procedural approval, I process a which

sign it first you Or approved approval? you for you be the it? it and wait will Okay. and contract goes But then to then for sign

Yes.

I we terms after contract we But first to also we because workers, what close the will that now my unit And first the this and to order recent Also, sign interactions in we with so, close the the need sure right? we sign we in the need close expectation government, it put Let for contract the we expect me will unit. be is expect shortly first unit, of year. that compensation that mean, way. happens first. German of end to the

clear. Okay, very

with last stages. Well that. congratulations luck Good the on Okay.

Sam. you, Thank

Next question please?

The Ahmed the Jefferies. comes from next question go line ahead. from of Farman Please,

good afternoon Two hi, us Yes, I with side. from was a you little a could -- morning, debt questions to afternoon everyone. bit good bridge for net good help year-end. hoping, my if

I I is, think granularity sort Then just -- the the Taiwan earlier if mentioned be the second significantly your and question three a net Japan. three where you there? EBITDA hoping, you guess expect give markets, I to first that the a bit Asian Korea, response little South of to below my to sort be question, times. But more follow-up mentioned of was you debt to you could us

those markets? partnerships you if you give do just How these of could you Thank so sort competitive you. assets talk anything dynamics color hoping, sort positioning of Just maybe enter bit tender just auctions? on of plan Is you us this what to the sort in can within a and your about little more have?

the for debt the on thanks has net Nothing Ahmed side. Yes. questions changed.

rates that currently at -- feel capital commodity have I given all stable much but our increase look you COVID said, when prices. we uncertainties, mean looks more interest did also the and before we -- it we considering So,

the to at stay even debt net capital times EBITDA. expect to increase We without three

billion, at EBITDA want that also exclude expect plus roughly you to the times a you if guidance, to €X we bit. So end three plus/minus debt -- quantitative and net is when

see we what Nordex the I And redemption I mentioned Let's is presentation the transaction. driven, the where is hybrid, are. in I mean what mean, the of

renewables. Of further in course, we have investment

high all effects cash quarter the €X trading. strong profiles times or in realization And confidence -- capital from a and adding plus up cash us net gives like also three and positive debt-to-EBITDA other flow, very that we expect cash billion that flow expect operating the some and ended We from increase. hedges items we

On very on the the I our we are through but walk in presentation Asian transparent markets renewables you I briefly assets it. can think yes,

market Japanese is a tender So the central market.

will The sites, formed everybody we bid where So can the your in market. first connection predeveloped Cement. Taiwan prices. we are I'm have And in joint are to on in to we we you come bit into and here do Very now the is Asia we today secure right is for the we additional market round, for tenders auction develop And can the sites. you to be Taiwan conglomerates bid looking with a are to the that progress a in you connection tell there. it's the auction. And we active preparing venture the into our have every model, partner are partners project options development we and or or of are that. making local similar grid into the satisfied who which Taiwan, the interest. doing whether project expect next weighing predeveloped very one It's can market, spend with into also year. you Taiwanese then projects maybe will auction bought activity grid money pipeline. into some later as one you And our government bid which the discussing the or and you route whether predevelopment I getting market joint into know route And partnerships largest we already yourself. U.K. now where and a this And years. active different the with bid next the we very

it's days is said. because very the Korea not framework early South

presence have We recently there. established a

market. we we partner now specific the partners And with would for we over that a say first with steps with hired whom decide in will country I the have up discussions in more and are couple We months next Chairman. of

Ahmed. you, Thank

Thank you.

please. question, Next

line go BofA ahead. Peter The Please, Bisztyga next of the question Securities. from from comes

thanks for my question. taking Hi, Yes.

analysis proposing apply secondly, Firstly XXX projects RWE sort grants outlined And if identified first there That's they're we've of question. that opportunities fund. I yesterday under wondering the EU recovery please? and some hearing market happens investors about the sort sort and impact who concerns assumptions power gung from competition with small tariffs solar of about wind ho of of prices and roll just for kind feed-in any any done PPAs to of been off. from E.ON the are for in my And was to unrealistic what has bidding after players

just something So you provide if you've to interested seen market? more sensible that's the I perhaps was also ask in that teams that's experienced us that reassurances when something assumptions could they some you've bid. And your if use with

mean, the our for thanks highly I programs tell you potential be if projects. disappointed, looked would not Peter, get to into that Yes. have we for question. support I you

course, Of our projects. hydrogen and have we especially

have Brexit, that list €X to then until think they larger be level, to U.K. sources XXX billion could into and for They have on Netherlands new also we Germany and for a the European for I more full grants European applied XXXX. we you European for the get will European We you're for applied the open, is apply the expect This €X is this on awarded applications to or of actually will grants. application the smaller more support with you second will in not ask first on EU the more And only our now January list will due billion, to hydrogen will more more projects one. are when process also do to now projects round level. short and we about look them our source. I get Unfortunately, level. And projects when expect also think in have But around national the not be on process. of talking the on bid the you is half the the short the as into

we one. in even you how should it's figure I the more more want Competition, are in in when in The not seen projects difficult you we to moment how pre-developed discussion be about And schemes so especially think you are the it's I newcomers euros the many to of have much right? to processes, your support bids will And relevant yet. shaped. which actively days. are how have projects, it. go are a be because it to have pipeline. what making also much gets currently these you national bidding into or And terms the number early very CfD out give programs so the specifically they and currently always referring transparent assumptions are the have Because no whom don't

to So they can what cannot needs second a is, you there transactions. reasonable what you see bid to be into assumption, have a confirm can partly observe and when what -- I auctions. But assumption your market you pay certain price

are either of our because U.S. or you project projects I'm we always or are do, very know into buy probably onshore/offshore somebody assets when somebody currently U.K. can part what process where might when willing together. So a assumptions close referring to, to you many

I there mean come And major drivers. is One because need so mean But mean, in we to And short-term, I say, to assumptions that there this that assumptions bidding pre-developed to a and cost of up of is we one I see CapEx project. OpEx you prices. think have What close these you a with we in are, project assumptions capital. processes, you, doesn't get see two the done? deterioration process do tell assumption, to you of price power CfD it, what price when is, that capital I two can interesting combination can together, a come is cost and dimensional are grid. let's power have regularly

year, Let's next I U.K. which it will of with think and observation point there of the and see before, early everything, is postponed from it zero now capabilities be until lease that is assumptions because an interesting capital. starts -- prices with auction, everybody I the said cost also its but

an answer. interesting you, Thank Okay.

you, Thank Peter.

Next please. question

Bernstein. from Deepa question comes Venkateswaran ahead. line go of the from next Please, The

Thank you.

follow-up. bid Just specific the talked think be a Could of that you they and might an I So that competitor of I Japan using. a us have two maybe questions. about site the site is -- would you maybe idea Ørsted has for? On size what give your

by dynamics? gone out So, you about have just decentralized hedging, maybe a could And both if you we auction could in margins guidance just the for and a secondly, hedged should XXXX for assume, Japan? so division? non-core that whether downgrade €X, explain down Thank years basically have the to you. that's maybe talk your on centralized and XXXX question your you And

Yes, many Deepa management, Japan, only process we thanks. do targeting and stakeholder intend on because especially content catalog this. to about, course criteria dimensional auction of it's sites, you prices is are local that complex and a very I a with XX% how certain mean,

So sensitive close short site of is specific The bid with it's which because I on in are a X high one on information. we area, want more that, in first targeting to cannot course and many the the sites. notice, one our you be And to so is megawatt three-digit partner don't gigawatt.

I you at half see now which into RWE question production have. On don't hedging, eight the think ago. because I we the significantly second of years I what mean lower it, used are to seven, mean, too much they read volumes are

much So smaller. a in prices is hedge movement

the is price needs have So are money which what zero is, capacity slightly is we from not now, current what deteriorates more hedged in And the capacity money. then average. of in at comes moves how more favorable. very have seen due also which moves we prices to course more be relevant And that to that market much recent the

types that, to which development, do But slightly segment. see spreads driven from it the price, but can or the a lower a multiplication you effect you it the by when extent small not So we I tell mainly negative that realized. for that our is volumes change prices expected we of such is guidance will

you. Thank

Thank you, Deepa.

please. question Next

The go of line next question from Morgan Pulleyn ahead. comes the from Please, Stanley. Rob

very Yes. Thank for Two you me. much. questions

we on been may, be is with XXXX risk? the past. about will that hoc could oil that are RWE in look zero hydrogen joint I we has seen an Is like how part types Offshore multiple appetite ad as we look question others or to I RWE we subsidy that contracts when partnerships for have of Or to manage collaboration if ask if and projects I Firstly, May Netherlands whether at for obviously Germany or is And such for chemicals And auctions agreements? of those basis? obviously seeking would available some companies the where the doing? there in Wind merit you noticed is have sort XXXX? talk second contracts the ventures of

the thanks question. Rob Yes, for

is yes. So, in on the one we are answer the consortiums. And clear already first

gas consortium course currently example are the in for hydrogen hydrogen it's is then And one so hydrogen assume And by our grid in oil We an Germany in it's where only offshore Germany, that bring a a from start and to not the unreasonable to Germany. the asking project phase, to do off-takers that here company the in project the it largest grid of we steel And company. establishment is there led grants. what is still and it's also for us, major green big refineries largest for hydrogen Ruhr consortium which we project a it's running that and project, doing chemical to the conceptual, of of we not are farms. companies, the two produce the intend the wind chemicals, significant to and valley steel, to northern part are

we doing doing Netherlands. are and the that U.K. in It's in a structure the smaller We are also it but bit the same

hydrogen video Offshore. the a because much get it's bring producers activities in of have also we will our operators that's other made always And summary the you. also but all CfD available on So structured that's on over really a the have know, net, we would don't we prefer was clear the the a that, hoc together mean, electricity, and It's to to grid I I I English, nice a one better it I basis. off-takers. whether we And of and not think -- an on ad model. green double-sided think approach

looking also I but Of these would value differently, as would course, because we an in always them value tenders, option. are we them

premium. terms have not penalty you bid option when what pay, an off-take. the a alternative where know you on decide an five And which potential right to in for would to is five option it, of years You work you build years you as have to

digital slow years' are get you option with it's because I consider it's merchant So where may process premium be it. at not beginning. in our the build-outs. too time It's wind how And where farm, you are many a think at to can the scenarios very maybe we to pay think a decision much about more five need offshore you willing valuable to beginning

hydrogen a position you demand a have think many but We offshore years position in bad merchant significant green XX to for X where about whatsoever, also scenarios can time. be very to higher is

turn very it I'll over. much. Thank Super you interesting.

Rob. you, Thank

Next question, please.

Your from go SocGen. the line Lueder question ahead. of Please, Schumacher comes from

afternoon. Good

why Just moved coming back they on hedges the and markets.

XX% moved overall the You or position changed. into that has did the XX% more money. mention volumes hedge But not above at

Trading? time Supply be months on go results could Supply you I & this at term has mean been negative you the weaker, is have position if least dynamics I quarters the not get QX sizable clean to can move. understand here that to dark overall Trading. an a for trying of do necessary negative? back quite many mechanics not nine but effectively your move over there. more We because unchanged your the said for than just moved like above there going the that spread actually you So there. against in volume guidance & locked implicit does And given second the current already that to short price, understand, question know, But mean is for they don't you? long €X detail too the I'm were

the Yes, Lueder, thanks for question.

is is hedge we volume let's the when implicit -- So One two full hedging. the mechanics constantly elements. follows: to have you unchanged fuel from -- as When volume. the we take

implicit been you that And spread. currently lower. that by also realize price has So setting the

hedged overall that the in brought element. And one lower the QX. already spreads than realized we position So from is hedge margin That down.

unchanged COX The have additional an at hedge other hedge that we margins is you And position, order prices. start prices historically more So I the volume, have into is market capacity relative -- you when you this zero capacity hedge element right? to in moves to market tell to you minus can or with start market need current And hedged. you significantly what XX%. below oil current with prices

down. So brings that also average the

Okay.

second bit up that Yes. end -- was question we end transfer favorable the phenomenal upper expect to that the And another that fourth Please had of the quarter months. weaker. nine & understand at first it up even mean, hint I on we yes. a Supply -- end we a expect then my very range cannot you Trading, maybe or

weaker meaning, not as quarter. so an average good So

also be to down also the we I that weeks we we But on come from it million. €XXX bit mean be it could a million. So could €XXX that have end still six go. average, about

So up read expectations. year it. More an end -- quarter-to-date, as not whatever that that QX quarter. tell please significantly can too expect the so happens, was you don't above-average far But we much will into average trading I

in hit QX negative real no there's So far. so

Very you. clear. Thank

Thank you, Lueder.

please. Next question

MainFirst. comes the question ahead. from Please, next from Martin of The go line Tessier

Martin, you there? are

to call we think right have recently I so name. the MainFirst rebranded, maybe

Then the back Martin Jess, maybe and Martin next take queue. question we not the put there. in if is

you. Thank

next question ahead. from line comes the Piotr Citi. Please, go So the from Dzieciolowski of

everybody. afternoon have two please. Good I questions

you first lower certain get? depends the the carbonization probably be mean half like could the means probably long-term into I the you could that more on -- the think for project second duration magnitude thinking wholesale year second money you process, three auctions longer investments a the that could the five of wanted you the a earmark view into of captured or thinking your CapEx power the Do total that Just about one how the the of think auctions change RWE? within and the on agree prices of if CapEx. Do within basis. of I the that it is question much that is ask this about value hydrogen the decade. of auction. the So of amount a contracts you you it to have on prices budget these we structures about And to subsidies about conditions of about so the structure

you about do this? So think how

thanks Piotr, question. to have I next CapEx in Yes, On for hydrogen, it's two too the amount years' the mean budget. early

XXX-megawatt €XXX €XXX million. and capital-intensive. electrolyzers electrolyzer different very steps, -- look about intensity probably also think you are of not capital-intensive. we million think The CapEx And capital at around very when themselves I large. When about electrolyzer, is the I the you talk talk Renewable of is

we have I seen. largest one think it's of maybe the ever

of the needs to change processes So lot -- to then CapEx of but course, a go off-takers. the at

you steel billion that imagine, you hydrogen XXX% if plant coal run a to investment. So instead coking of want is €X on

everything So into I from our most side, will go will mean most, not go of investments the Renewables. still I into almost -- mean

and for with come probably different long-term probably design. think also the you also the the it happen then the willing returns mean through so you design. Whether very wholesale And the have But you I market pipeline because long-term a good it's need next the market for I when the you as arch into is dispatch it's governmental not to or a current for also by properly about of don't by that relevant XX% politicians market But electrolyzers. And within And us. XX% never be obligation that CapEx, that paying terms off-takers to with a to to an and regulated, investment. two, question, totally go is secure think investors. the whether renewables, fully it that sure that We you decision. think we very big. years. are done intellectually, can market it's design, this is market, more where about regulators PPAs on expect also contracts know more And it's whether to money three of then a think regulated But discussion not when general in it's up I I question

these regulatory two getting their when running. and three priorities I the solved the one up potentially And are is start mean topics two big -- with over hydrogen different. framework. the a now discussing think I first pricing, then are the second next is then long-term debate which the we economy years, carbon then

Okay. Thank you very much

Piotr. Thanks,

question Next please.

line comes Kepler. the ahead. next Becker Please, question Ingo of from go The from

got Good you for Thank questions. morning. two I Yes. my taking question.

about question. you making immune would so whatever XXXX, reconfirm basically is be you second, be projects. the was or running That you That your changing you if see any I'm process? very hold? would of on my hedge The levels? trend Do much. on the future or then, COX. I it. COX And own phrasing current differently just would first Could Renewable you price expectations Thank that from views first of against interested your that capital that it comment past will us be COX through could to of hedge your the cost

I Ingo, confirm easy. it. Okay. is can Yes. one the pretty first

cost we aspects. are our hedged because of any One prices -- we maybe all expected second carbon we one, environment. lower production. cost change We interest commercially And it's is for see XXXX until three for longer rate capital, what have give now the you of even see against in capital, and lower on much

rates you cost them average when months. six, XX capital. don't I your you of take over calculate mean XX, typically you So, spot

that at about So environment some also more true in assets. more the offshore this the with When you say, equity, that one second five, the before, much capital previous has look in same comfortable And or three let's when the is sixth the reflected ago, and you same, I for partners, is, see come of comfortable compare we project the fifth And areas also you you down. feel logistics, interest do risk also of real holds the talked your valuations mean course, estate significant projects. at than real it I with much cost construction profile. to, with into of years same rate feel and lower assets. Renewable look

also our down. on slightly what at more of least is, see less stable. we of when coming I also additional generation, But capital, is or top premium cost risk required is value So calculations, the your run

you I coming have how I also don't question might others, or to last change get mean I that will and for investors let's whether to who mean, returns. competitive I expect Of very But a the that because entry processes ask their bid had for course, see, unreasonably. too to to in decent long, market back before, auction whatsoever are willing

which problems. our pessimistic in So, a And assets into valuation. we from described that effect, has pipeline the run and there's that gained existing existing our just counter means environment I'm not definitely

you. Thank

Thank you, Ingo.

please. question Next

from Intelligence. comes Elchin the from Bloomberg question ahead. next line Mammadov of The Please, go

Hi, there. I have two questions please.

the first Germany. LNG The asking The why reason projects. interest binding that Is the Uniper's insufficient in project your import due The on last is case? bids heard I I'm in one is there Brunsbüttel end. by were seems still year be to

what your XXXX, factors as you. outlook yours more wondering as doing. second And well was I XXXX? load So Europe in is evolution one. for question Thank is What's prices the gas for broad power the of and

Yes.

year-end. the can operator, terminal you LNG out not but the mean, be On expect are future by the significant capacity of the we of the the operator I that we confirm part have that contracts capacity, EPC booked consortium. wider the of to role, submitted And part are we we a or know that in I the secured terminal,

a Do price, other LNG factor least at it it gas by rosy I terminal activity will vaccine call. do and I slight delay, the price that I implement and we bit the the the then if volumes mean, and that's current COVID at they forward And about the one. influenced or a mean, power even or can is are that globe. some do they more power how especially reduction determining a what maybe is what the people increased power economic decides true QX mean, I power target The on maybe Do difficult -- around very situation linear the ETS they a years I European everything intend prices, prices. go difficult XXXX. overall gas they most than is how tell Commission to prices mean, say even see the on huge difficult to and and get expect out And level beginning? I most clarities final built, to in a terminal come. for first the the is expect for expect capacity. take impact the terminal stay back-loaded of And would having next being Germany front-loaded the the but power we half all prices decision we take On up. by have do technicalities that XXXX, of year. we will be next factor booked at So RWE to about are gas that year. the optimistic prices we And have first think to prices, it we about more next which more EU, so the in

Okay. Thank you.

Thank you, Elchin.

please. question, Next

line of [Operator go from Instructions] Peter Securities. The from Bisztyga Please, BofA the next question comes ahead.

Yes.

was due have have hundred they you're to don't us But phase for give chance one several could on follow-up. just I compensation. detail what a know [Technical mean if nuclear the your that phase-out to regarding for have teams -- out? wondering Sorry legal think if Difficulty] if regulatory I had you just this a million Vattenfall nuclear a in yet. might compensation or of at view look it euros

compensation years XXXX there context, adequate in no about the investments. for a was maybe nuclear the frustrated couple Peter, exit had everybody in of by and ruling rights ago I to -- the constitutional I be where mean, production think was for I mean, a the it we Yes. the XXXX, needs ruling was… That loss court

XXXX.

constitutional operators And XXXX. whether B to try the companies. were long because the should went from short constitutional overall sufficient, law for industry, compensation that court Vattenfall the ruling and adequate long. court. of law can because out that are government then compensation was were the favorable with We by the some it. to to done happy they production today of were the negotiate saying intend came reaction ruled not we a Vattenfall favor rights is law rights, the has which for is the that and right constitutional government compensate strengthened Again and to by first German compensation. transfer first the government Part not production as said, the by it A that what court others with solving compensation and then in the to they the

mean, ruling less, only because cannot also compensation had tell or some some our whether that rights you I our the loss ruling I content both the position. So is law frustrated expect more say, has wise not it, investment currently on questions definitely sufficient. not stick medium I questions. to but compensation government now would weakened They by would was amount. production the we that and procedural we overall we from expectation a the million say, expect I current triple-digit

Okay. Perfect. much. Thanks very

the maybe need what we when compensate strengthened here adequately you about have I for the and is of has us think constitutional interference that that but and for when But there, court read, one coal more also once think positive industry cross position government the to you damages. discussions

Thank you.

questions. you, Peter. Thank there further Are any

from line MainFirst. the from ahead. Tessier Martin comes go of question next Please, Your

morning. Good to still week markets. fixed. for issue Yes. have be Stifel the problems apologies And beginning the this in MainFirst from We've we at IT this to of moved and IT

In indicated open nine for question that. from XXXX beyond onwards? for of from months at your the margin me, renewables in an generation and color you production. first gross thanks figure give merchant Capital renewables. full XX% Could on for thanks. year Sorry the or presentation Only Anyway, Market in presentation. relied one volumes regarding the Many for some of indication you an your least us and the maybe year Day the updated that

Maybe Yes. background. Thanks question. a the for Martin bit of

our not unit have has renewable contingent So some we offtake. of production a

CfD be produce. And unit course, when don't you are volume this So exposed PPA. volume a you be that And short feed-in or you to partly either squeeze. to mean market hedged prices I entirely want cannot contingent with tariff of in because

profile high to position the you you production expect have hedge to other you you you when So under than from because a the very don't back don't are buy and Market hedge expected where prices want market. be produce. profile exact always you in --

the extent. what to which as X-terawatt to I say production, prices. part due has but very, the would to the that around spot of hours COVID So small And is hit is a exposed X- us very now, situation

not of guidance it is have nothing your because we the end effect. not reason delays more to now other question seen think have I also hedged hedged. not really the we for to the of the we would minor. XXXX, or if which construction to than about mean XX%. -- 'XX, position move mean would So is how lower less more I have merchant concerned small. renewable the than XX% hedged made more only the very much of have this I -- now in And exposure And XX% at It is for very

Okay. Very clear. Thank you.

you, Thank Martin.

Next question, please?

questions. There are further no

So to remarks. closing for I your back will hand over host

results QX to days I'm mid-March. full everyone looking over and meet year at you Thank call. for speaking Excellent. into dialing our you let's the to you the in coming forward

Thank you joining for today's call.

You disconnect lines. may now your