Energy company: Energy company RWE more than doubles profits

Energy company: Energy company RWE more than doubles profits

RWE has earned very well in recent months, particularly with electricity from renewable energies and gas power plants as well as from energy trading. The management is satisfied.

The energy company RWE made huge profits from electricity generation and trading in the first nine months of the 2023 financial year. The adjusted net result at the end of September was almost 3.4 billion euros, more than twice as high as in the same period last year, as RWE reported on Tuesday in Essen. “RWE is growing, and doing so very profitably,” said CFO Michael Müller in a conference call.

He cited “strong investing activity” as the reason for the earnings growth. Since the beginning of the year, generation capacity has increased by around six gigawatts. “This leads to significantly increased electricity production from renewable energies, which contributes to our earnings growth.” This development will continue. Projects with around eight gigawatts are currently under construction worldwide. The group’s core business includes electricity generation through wind and solar systems, run-of-river, pumped storage, biomass and gas power plants as well as energy trading.

New wind farms and favorable winds

The company cited the commissioning of new wind farms in the North Sea and more favorable wind conditions as reasons for the increase in profits from offshore wind power. For onshore solar and wind, among other things, the takeover of the US solar power producer Con Edison on March 1st had a positive effect. The sale of electricity from the operation of flexible gas power plants in Great Britain during times of low wind also made a major contribution. According to RWE, business with liquefied natural gas (LNG) in particular improved in energy trading. In addition, the previous year’s result was burdened by value adjustments on contracts for hard coal purchases from Russia.

The company reiterated its outlook for 2023 as a whole: According to this, net profit of 3.3 to 3.8 billion euros is still forecast for the year as a whole. The dividend for the current financial year is to be increased by ten cents per share to one euro, as the company had already announced in March 2023.

RWE announced that it would present its revised growth strategy at a capital markets day in London on November 28th.

RWE announcement

Source: Stern

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