RWE upgrades 2021 fiscal outlook after strong core business earnings

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RWE upgraded fiscal forecasts for its core business, which includes solar and wind power. Image: RWE

German energy giant RWE has upgraded its earnings forecast for 2021 after “exceptionally positive” earnings trend.

After assessing business performance in H1 of this year, RWE has adjusted its group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) expectations to be between €3.0 billion (US$3.57 billion) and €3.4 billion (US$4.05 billion). It was previously anticipating between €2.65 billion and €3.05 billion.

The upgraded EBITDA expectations are down to RWE’s “core business” – which includes solar, wind, hydro power, biomass and supply and trading – seeing significant forecast improvements. Its core business’s outlook went from €1.8- €2.2 billion in March 2021 to €2.15- €2.55 billion in July.

The main drive of this was its supply and trading arm that went from €150- €350 million to “significantly above” €350 million, although its renewables still contribute the most. “Adjusted EBITDA in the Supply & Trading division reached an exceptionally high level of €525 million in the first half year thanks to a strong trading performance,” said the company.

Projected net income is between €1.05 billion to €1.4 billion, up from €0.75 billion to €1.10 billion, while RWE sticks to its dividend target of €0.90 per share for fiscal year 2021.

“Given that our outlook for 2021 was muted due to the negative effects from the Texas cold snap at the beginning of the year, we are now pleased to raise our forecast for RWE Group for fiscal 2021,” said RWE CFO Michael Müller.

RWE will publish its interim report for the first half of 2021 on 12 August 2021.

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