Thanks to wind power and coal: RWE is getting through the crisis better than expected

Friday, February 05, 2021

Thanks to wind power and coal
RWE comes through the crisis better than expected

Favorable weather conditions and an increase in coal and nuclear power plants help the energy company RWE to significantly exceed its profit forecasts for 2020. The share price also rises, at times by more than three percent.

The energy group RWE exceeded its profit forecast for the past year despite the economic effects of the Corona crisis. The adjusted earnings (Ebitda) are expected to be 3.2 billion euros and will thus exceed the upper end of the forecast of 2.7 to 3.0 billion euros, the Essen-based company announced on the basis of preliminary figures. In the previous year, the Ebitda was 3.0 billion euros.

Things went well for the group, especially in energy trading, but business with wind power also increased. In addition, RWE was able to significantly increase the adjusted earnings in the coal and nuclear sector compared to the previous year. CFO Markus Krebber, who should move to the top of the group in the summer, confirmed the dividend target of EUR 0.85 per share for 2020. RWE shares rose, at times the shares rose by 3.6 percent.

RWE expects "excellent results for the 2020 financial year that will significantly exceed our forecast," said Krebber. This is mainly driven by the extraordinarily strong development in the trading business, which earned around 539 million euros operationally – RWE had originally expected up to 350 million euros.

The offshore wind division was able to increase its adjusted earnings (adjusted Ebitda) by eleven percent to over one billion euros thanks to the more favorable weather conditions. The onshore wind turbines including solar also increased thanks to new systems. The Group's traditional business with electricity from coal-fired and nuclear power plants brought in 559 million euros in operational terms, significantly more than in the previous year. RWE intends to present the final figures for the past year on March 16.