RWE’s profits drop by 13%

German utility RWE has reported a 13% fall in earnings during the first three quarters of the year. It’s EBITDA during the same period has been €3.8 billion (£3.26bn), according […]

Register now!

By Jacqueline Echevarria

German utility RWE has reported a 13% fall in earnings during the first three quarters of the year.

It’s EBITDA during the same period has been €3.8 billion (£3.26bn), according to the firm.

Its operating results amounted to €2.1 billion (£1.80bn), a 20% drop year-on-year, while its adjusted net income was €227 million (£195.22m) which is a 58% drop compared to 2015.

However, the firm maintains its forecast for the fiscal year. It estimates its EBITDA will be between €5.2 billion (£4.6bnbn) and €5.5 billion (£4.73bn) and its operating results between €2.8 billion (£2.4bn) to €3.1 billion (£2.6bn).

It also expects its adjusted net income to be between €500 million (£430m) to €700 million (£602m).

EBITDA for the supply division, which includes its UK retail brand npower, dropped by 0.4% to €699 million (£601.1m) and its operating profits fell by 8.4% to €547 million (£470m)

The company’s renewables subsidiary Innogy generated €4.6 billion (£4.09bn) in the Frankfurt Stock Exchange providing €2.6 billion (£2.31bn) in proceeds for RWE.

Markus Krebber, CFO of RWE AG said: “In a very challenging environment, we now have a solid basis on which to shape the future of our company. RWE Generation plays an important role in the conventional energy market. With its flexible power plant fleet, highly efficient processes and qualified workforce, RWE Generation is making a key contribution to security of supply.

“RWE Supply and Trading is one of the leading energy and commodity traders in Europe and present at many of the world’s major trading points. With its activities, it plays a decisive role in ensuring functional trading markets, which are indispensable to our economy.”