FRANKFURT - German utility EnBW expects its core profit to rise by as much as 58% in 2023 on the back of its energy networks, renewables and trading divisions, reason enough for the group to accelerate its coal power phase-out by seven years.
One of Germany's largest utilities, its VNG trading division was hurt last year when Russia curtailed and then halted gas supply via the Nord Stream pipeline.
On Monday it moved forward its planned phase-out of coal-fired power generation to 2028 from 2035, a target already ahead of the 2038 deadline set by the government.
"We are promoting the transition to greater sustainability and plan to completely phase out coal as early as 2028, provided that the German government's policy framework allows," said Chief Executive Andreas Schell.
The company, which proposed an unchanged dividend of 1.10 euros per share for 2022, did not spell out which policy framework was required to implement that step.
It plans gross investments of 14 billion euros ($15 billion) for the 2023-2025 period, three-quarters of which are allocated to the expansion of grids and renewables.
For 2023, the company expects an adjusted core profit (EBITDA) of 4.7 billion to 5.2 billion euros, after an 11% increase last year to 3.3 billion.
"We owe this result to prudent planning and our integrated lineup across the entire value chain," Schell said.
($1 = 0.9291 euros)
(Reporting by Christoph Steitz; editing by David Holmes and Jason Neely)