FRANKFURT RWE, Germany’s biggest electricity producer, on Thursday said it will reach the upper end of its 2020 outlook for both core and operating profit after what it said was a strong first half.
Europe’s No.3 renewables player posted an 18% rise in first-half adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), citing capacity market payments in Britain, higher wholesale power prices and stronger wind output.
“The coronavirus continues to cast a shadow over the global economy,” Chief Financial Officer Markus Krebber said.
“But RWE has weathered these difficult times well so far, and this is also reflected in our business performance for the first six months.”
The group said it now expects to hit the upper end of the forecast range for adjusted EBITDA and EBIT, of 2.7 billion to 3.0 billion euros ($3.2-$3.5 billion) and 1.2 billion to 1.5 billion euros respectively.
Shares in the company were indicated to open 1.4% higher in pre-market trade, with traders pointing to the positive outlook.
“RWE did comparably very well with its renewables core business, especially given the tough COVID environment E.ON showed yesterday,” a Frankfurt-based trader said.
E.ON, which focuses on energy grids and retail, on Wednesday cut its outlook due to the impact of the coronavirus crisis on its business.
Among RWE’s business units, the strongest increase occurred at its coal and nuclear division, where higher wholesale prices led adjusted EBITDA to more than double in the first half to 310 million euros.
($1 = 0.8475 euros)
(Editing by Michelle Martin, Maria Sheahan and Jan Harvey)
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