RWE more than doubles profit
The energy company RWE made substantial 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 just under 3.4 billion euros, more than double the figure for the same period last year, as RWE reported in Essen on Tuesday. "RWE is growing, and very profitably," said CFO Michael Müller in a conference call.
He cited "strong investment activity" as the reason for the earnings growth. Generation capacity has increased by around six gigawatts since the beginning of the year. "This has led to a significant increase in electricity production from renewable energies, which is contributing to our earnings growth." This development is set to continue. Projects with around eight gigawatts are currently under construction worldwide. The Group's core business includes electricity generation from wind and solar plants, run-of-river, pumped storage, biomass and gas-fired power plants as well as energy trading.
New wind farms and favorable wind conditions
The company cited the commissioning of new wind farms in the North Sea and more favorable wind conditions as some of the reasons for the increase in profits from offshore wind power . The acquisition of the US solar power producer Con Edison on March 1 had a positive impact on solar and onshore wind. The sale of electricity from the operation of flexible gas-fired power plants in the UK also made a major contribution in times of low wind. According to RWE, the liquefied natural gas (LNG) business in particular improved in energy trading. In addition, the previous year's result was negatively impacted by impairments on contracts for hard coal purchases from Russia.
The company confirmed its outlook for the full year 2023: Accordingly, net profit of 3.3 to 3.8 billion euros is still forecast for the full year. 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 28.
In the revised growth strategy to be presented at the Capital Markets Day in London, RWE is expected to highlight its continued focus on expanding its core business of electricity generation from wind and solar plants, run-of-river, pumped storage, biomass, and gas-fired power plants, as well as energy trading. Despite the positive impact of the sale of electricity from flexible gas-fired power plants in the UK, Fuller acknowledged that the company's significant profit increase in the first nine months of 2023 was also due to the commissioning of new wind farms in the North Sea and more favorable wind conditions, which significantly boosted profits from offshore wind power.
Source: www.ntv.de
