RWE's outcome remains consistent
RWE, the largest German power producer, has confirmed its forecasts for the full year of 2023, despite a 25% decrease in adjusted EBITDA in the first half of the year compared to the same period in 2022.
The company reported an adjusted EBITDA of €2.1 billion for the first half of 2023, down from €2.9 billion in the same period of last year. Weaker wind conditions in Europe and a weak trading performance contributed to this decrease. However, the commissioning of new renewable assets, including onshore wind farms, solar plants, and battery storage systems, partially offset these losses.
CEO Markus Krebber stated that the company has reached half of its annual target for the adjusted net result, with a value of €1.06 per share. The long-term goal for RWE is to increase the adjusted net result per share to four euros by 2030.
For the full year of 2023, RWE expects the adjusted EBITDA to be between €4.6 billion and €5.2 billion, and the adjusted net result to be between €1.3 billion and €1.8 billion. This equates to an adjusted earnings per share (EPS) of approximately €2.10 based on the midpoint of this range.
Looking ahead, RWE is advancing its growth by commissioning over 3 gigawatts of new capacity in the second half of the year. This is part of the 11.2 gigawatts currently under construction. The company operates an integrated portfolio of 38.4 gigawatts of renewables, batteries, and flexible generation assets.
Analysts at JP Morgan have stated that they see RWE's numbers as below expectations. Despite this, RWE shares have slightly decreased in an otherwise positive environment.
In summary, RWE's current outlook for 2025 projects an adjusted EBITDA between €4.55 billion and €5.15 billion and an adjusted net income ranging from €1.3 billion to €1.8 billion, equivalent to earnings per share of about €2.10 based on the midpoint of this range. Despite the first half of 2025 showing lower earnings compared to the same period last year due to weaker wind conditions in Europe, which caused lower offshore and onshore wind production, RWE has confirmed it remains on track to meet its full-year targets.
