🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

RWE stock down on earnings dip

Published 08/14/2024, 05:51 AM
© Reuters.
RWEG
-

Investing.com -- Shares of RWE AG (ETR:RWEG) were down  on Wednesday after it reported a drop in earnings for the first half of 2024.

The company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell to €2.9 billion from €4.1 billion during the same period last year, marking a decrease of about 30%.

The decline in earnings is due to a sharp drop in power prices, which have been influenced by lower gas costs and increased renewable energy generation. 

After benefiting from high electricity prices over the past two years, RWE has faced reduced revenues as market conditions have shifted.

RWE AG's first-half 2024 results have surpassed consensus expectations, with adjusted EBITDA reaching €2.90 billion, which is 3% above consensus estimates, said analysts at UBS Global Research in a note. “But 2% below UBSe driven by a slightly weaker result in Supply and Trading,” they added

Despite this downturn, RWE achieved record earnings from its renewable energy sector. The company reported that wind and solar power now account for 45% of its total power production. 

Enhanced weather conditions and the commissioning of new renewable capacity contributed to these strong results. Additionally, RWE successfully reduced its carbon dioxide emissions by 27%.

RWE has reaffirmed its FY2024 guidance, expecting adjusted EBITDA to be at the lower end of the previously stated range of €5.2 billion to €5.8 billion. Consensus estimates for EBITDA are €5.4 billion. 

The company also expects adjusted Net Income to fall between €1.9 billion and €2.4 billion, with consensus at €2.0 billion and UBS at €1.9 billion. The dividend target of €1.1 per share for 2024 remains unchanged.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.