RWE raises growth targets significantly
The energy group RWE, which focuses on renewable energies, is increasing its pace of growth and setting itself higher targets for the current decade. The Essen-based company announced at a capital market day in London on Tuesday that it intends to invest a net 55 billion euros worldwide between 2024 and 2030. The green generation portfolio is to be expanded from the current 35 gigawatts to more than 65 gigawatts. The investments are intended to give a strong boost to profitable growth.
CEO Markus Krebber expects an average annual increase in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of 14 percent. By 2030, it should amount to more than nine billion euros. By comparison, the Group is targeting adjusted EBITDA of 7.1 to 7.7 billion euros for the current year.
Shareholders should also benefit from the growth. The dividend is set to increase by 5 to 10 percent annually. The dividend target for the 2024 financial year is EUR 1.10 after EUR 1.00 for the current year.
According to RWE CEO Markus Krebber, the 55 billion euros are to be invested in renewable energies, storage technologies, flexible generation and hydrogen projects by 2030. "We are growing sustainably and increasing our earnings while decarbonizing our portfolio even faster," he said in a statement. He reaffirmed the company's goal of becoming climate-neutral by 2040.
The growth strategy continues to bear the name "Growing Green". The Group presented it for the first time in November 2021.
RWE's focus on alternative energies, such as renewable energies and hydrogen projects, will require significant investments of 55 billion euros by 2030. This growth in alternative energies is expected to increase the company's electricity generation capacity from 35 to over 65 gigawatts, contributing to its target of becoming climate-neutral by 2040.
Source: www.dpa.com
