13 November 2002 – RWE has issued its results for the first three quarters of the year with the company reporting that for its core utility activities operating profit rose 29 per cent.

Operating profits for RWE’s electricity activities show a growth of 46 per cent that it attributed to increases in German power prices and the effect of its cost-cutting measures. RWE declared it had achieved €470m ($473m) in cost savings.

The company also said that it had made a provision to write down part of Hochthief, although no figure was attributed. These were the first results to include the company’s recent acquisitions of Innogy and Czech gas company Transags In all the results appear to be roughly inline with City expectations.

At €3.2bn, the consolidated operating result is 12 per cent up on the previous year. Core businesses increased their operating result by 29 per cent. Electricity operations continue to be a key success factor, boosting their operating result by 46 per cent. Non-core businesses (Heidelberger Druckmaschinen, HOCHTIEF, and the service station and refinery activities, which were divested as of July 1) saw operating results decline by 64 per cent.

EBITDA (earnings before interest, taxes, depreciation and amortization) rose 2 per cent to €5.1bn year-on-year. Net profit was down 12 per cent to €906m. However, these effects were partially offset by the book gain on the sale of our service station and refinery operations (50% stake in Shell & DEA Oil GmbH). Earnings per share excluding goodwill amortization amounted to Euro 2.57 and were Euro 1.61 including goodwill amortization.