RWE preps for renewables future with "very good" H1 op result

German energy group RWE AG (ETR:RWE) on Wednesday posted a 30% rise in first-half adjusted net profit to EUR 914 million (USD 1.02bn), on a stand-alone basis, and revised upwards its full-year earnings projections.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased to EUR 1.37 billion from EUR 1.14 billion following a strong performance of the Supply & Trading unit. These figures do not take into consideration the activities of RWE's Innogy unit, which is being sold to utility E.on SE (ETR:EOAN).

In the table below you can find more information about the RWE Group's financial performance in January-June 2019, including Innogy's contribution.

RWE made adjustments to its previous 2019 forecast, which takes into consideration Innogy as a purely financial investment. It now expects adjusted EBITDA of between EUR 1.4 billion and EUR 1.7 billion rather than EUR 1.2 billion-1.5 billion, as well as an adjusted net profit of between EUR 500 million and EUR 800 million rather than EUR 300 million-600 million. It continues to anticipate a dividend increase for fiscal 2019 from EUR 0.70 to EUR 0.80 per share.

The company said that in the coming weeks it will focus mainly on the completion of its complex asset-swap transaction with E.on, which is expected next month. The move will turn the group into an international player with a clear focus on renewables and energy storage. More specifically, it will end up with a renewables portfolio of 9 GW and will be the second-largest offshore wind farm operator globally.

“The framework for the future RWE Renewables has been defined, we have chosen the management team, and the integration has been prepared as far as we can under competition law,” commented Rolf Martin Schmitz, CEO of RWE.

(EUR 1.0 = USD 1.118)

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