RWE lifts nine-month earnings and expects upper end of annual ranges
German energy group RWE increased nine-month adjusted earnings and retained its annual forecasts, expecting results near the upper end of the ranges. New assets, European wind conditions and stronger energy trading contributed, according to the company. Net investment reached 10.7 billion euros, while net debt rose to 17 billion euros.
Economics & Markets··Evening
Group earnings rise
German energy group RWE reported higher nine-month earnings, with stronger energy trading contributing to the increase. It retained its annual earnings outlook. The company put adjusted earnings before interest, tax, depreciation and amortisation at 4.6 billion euros, compared with 3.4 billion euros a year earlier. Adjusted net income increased from 1.3 billion euros to 1.8 billion euros.[1]
RWE increased earnings after gains in energy trading and confirmed its annual forecast.[1], [2]
Trading recovers after weak start
Supply and Trading’s adjusted earnings rose to 543 million euros from 150 million euros after a weak start to the year. RWE now expects that division’s annual result to exceed its previous range of 100 million to 500 million euros. The company also attributed higher group earnings to new assets and more favourable European wind conditions. Adjusted earnings per share rose from 1.77 euros to 2.52 euros.[1]
Investment and debt increase
Net investments reached 10.7 billion euros, while net debt stood at 17 billion euros at September’s end. RWE expects year-end net debt of about 12 billion euros, principally following deconsolidation of offshore projects through its KKR joint venture. Annual adjusted net income guidance remains between 1.95 billion and 2.45 billion euros, with results expected near the upper end. The dividend target remains 1.32 euros per share.[1]
