(New: Management statements from conference calls, analyst vote, final half-year figures)

ESSEN (dpa-AFX) - Energy group RWE has further expanded its green power generation portfolio in recent months. In the first half of the year, investments totaled nine billion euros, as the group announced in Essen on Thursday. Capacities reportedly rose to 34.3 gigawatts (GW), with another 7.2 GW under construction. However, according to estimates by group CEO Markus Krebber, problems at wind turbine manufacturers are likely to delay expansion in Germany for several more years.

The RWE share initially rose by more than two percent after the publication of the complete half-year report in the morning. Towards midday, however, the share was down by a good one percent. The management had previously rejected share buybacks in a conference call with analysts.

RWE had already raised its annual targets at the end of July on the basis of preliminary figures. In particular, high margins in power generation from water, biomass and gas provided tailwind in recent months. In addition, energy trading was better than expected.

The final figures for the first half of the year and also the outlook for 2023 were in line with statements made at the time of the key data, Ahmed Farman of analyst firm Jefferies wrote in a research note published on Thursday. RWE earned €4.5 billion before interest, taxes, depreciation and amortization and adjusted for one-off items in the first six months - more than double the year-earlier figure. For the full year, RWE aims to earn €7.1 billion to €7.7 billion in operating terms. Industry expert Farman took a positive view of the energy group's confirmed targets for the current year.

RWE CFO Michael Müller reported good progress in work on two large offshore wind farms in Denmark and the UK, as well as on 17 onshore and 36 solar projects. In addition, there would be 15 battery plants. "In the second half of the year, we will continue to invest in the energy turnaround," Müller announced.

RWE aims to have a green power portfolio including gas generation of 50 GW by the end of the decade, as the group had already announced in November 2021. However, with that mark already in sight, the executive board plans to update the expansion targets at a capital markets day on Nov. 28.

"We are making good progress with the expansion," Krebber stated. However, RWE would like to be faster at one point or another. "The fact that this is not always possible is not a question of capital," the manager said. Political framework conditions determined the pace. He also addressed the problems at turbine manufacturers for wind turbines.

"We are currently experiencing a challenging phase in the global offshore business," RWE CEO Krebber said. He added that the Group itself was implementing its offshore wind projects as planned - both in the German domestic market and in other European countries and the United States. But the manager also pointed to other projects in Europe and the U.S. that have already been halted due to cost increases. "Something like this is the 'worst case' for the energy transition: When large projects that have already been awarded are not realized as planned after all," Krebber warned.

Among others, turbine manufacturer Siemens Gamesa had reported significant problems a few days ago: In the offshore sector, the company expects higher product costs, contractually already committed projects could therefore no longer be completed profitably. In addition, there were problems with the ramp-up of activities. Siemens Gamesa had wanted to ramp up capacities too quickly, the management admitted.

Meanwhile, according to Krebber, RWE is talking to its suppliers about possible delivery problems. As things stand, however, there are no major anomalies or problems with its own turbines in the wind portfolio, the RWE CEO said. The group is trying to secure long-term capacity, for example through long-term contracts and framework agreements. RWE currently has 2.5 GW of offshore capacity under construction.

For the overall market and the German energy transition, however, Krebber is concerned about the possible lack of financial resources for research and development of new turbine generations. In addition, the potential supply difficulties could cause prices to rise even further. The supply chain is most clearly strained on the offshore side for the next five to 10 years, Krebber said.

Capacity from all contributors would need to be significantly expanded, he said. This includes transformer stations, as well as turbines, foundations and installation vessels, he said. Suppliers must not wait for the orders to come in, he said. Otherwise there would be a second wave of delays, Krebber warned. Designating marine areas for wind energy at an early stage would be helpful for planning security.

Krebber was confident about Germany's speed of expansion of onshore wind energy as well as solar energy and batteries./lew/tob/tav/he