RWE keeps outlook after forecast-beating H1, shares fall
H1 adj EBITDA at 2.9 bln euros vs 2.8 bln poll
Some had expected guidance increase - Bernstein
Shares down 1.7%
Adds details in paragraph 1, 3-5
By Christoph Steitz and Tom Käckenhoff
FRANKFURT/DUESSELDORF, Aug 14 (Reuters) -RWE RWEG.DE on Wednesday released higher-than-expected profits for the first half, but did not raise its outlook for the full-year, causing shares in Germany's largest power producer to slip.
First-half adjusted core profit (EBITDA) fell 30% to 2.9 billion euros ($3.2 billion), beating the 2.8 billion euos forecastin a poll provided by the company. First-half adjusted net profit fell 43% to 1.36 billion euros, also higher than the 1.28 billion euros poll.
The group, which covers the whole range of power production from fossil fuels to renewables, confirmed its 2024 outlook, expecting to reach the lower end of a 5.2 billion euro to5.8 billion euro target range for adjusted EBITDA.
"There were some expectations in the market that the company could upgrade earnings - this has not happened, possibly driven by a very normal quarter for trading," Bernstein analysts said.
Shares in the company were 1.7% lower at 0810 GMT, the second-biggest decliners in Frankfurt's blue-chip DAX index .GDAXI.
The first-half beatwas mainly driven by higher-than-expected profits at RWE's flexible generation division, which comprises its gas-fired power plants and which posted adjusted EBITDA of 1.014 billion euros, compared with the 938 million poll.
($1 = 0.9100 euros)
Reporting by Christoph Steitz and Tom Kaeckenhoff, Editing by Miranda Murray and Kim Coghill
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
