December 4, 2023

Energy company RWE doubles its profits

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Steam rises from the RWE Neurath coal power plant. The power plant operated by RWE is the largest lignite-fired power plant in Germany. © Oliver Berg/DPA

RWE has achieved very good gains in recent months, especially in terms of electricity from renewable energies and gas power plants as well as from energy trading. Management is satisfied.

Essen – Energy company RWE made huge profits from electricity generation and trading in the first nine months of fiscal 2023. The adjusted net result at the end of September was nearly 3.4 billion euros, more than double what it was in the same period last year, as RWE reported on Tuesday in Essen. “RWE is growing, and doing so very profitably,” CFO Michael Mueller said on a conference call.

He cited “strong investment activity” as a reason for the earnings growth. Since the beginning of the year, generating capacity has increased by about six gigawatts. “This leads to a significant increase in electricity production from renewable energies, which contributes to the growth of our profits.” This development will continue. There are projects with a capacity of about eight gigawatts currently under construction around the world. The Group’s core businesses include electricity generation through wind and solar systems, riverbeds, pumped storage, biomass and gas power plants, as well as energy trading.

New wind farms and favorable winds

The company cited the construction of new wind farms in the North Sea and more favorable wind conditions as reasons for increased offshore wind profits. For solar and onshore wind energy, among others, the acquisition of US solar energy producer Con Edison on March 1 had a positive impact. The sale of electricity generated from the operation of flex gas power plants in Great Britain during times of low winds has also made a significant contribution. According to RWE, business with liquefied natural gas (LNG) has particularly improved in energy trading. In addition, the prior year’s results were burdened by value adjustments to hard coal procurement contracts from Russia.

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The company confirmed its forecast for the full year 2023: accordingly, a net profit of between 3.3 and 3.8 billion euros is still expected for the full year. The dividend for the current financial year is scheduled to increase by ten cents per share to one euro, as the company has already announced in March 2023.

RWE has announced that it will present its revised growth strategy at its Capital Markets Day in London on 28 November. dpa