RWE posts positive result

RWE’s earnings were up 7 per cent year on year, according to its latest half year results announcement, thanks in part to compensation granted to the utility for an illegal nuclear tax imposed by the German government, and solid gas power generation performance.

Both RWE and E.ON à‚ got a huge boost earlier this year when Germany’s highest court ruled that a nuclear fuel tax imposed on the utilities was unconstitutional.

RWE’s chief financial officer Markus Krebber said the company would pay an ordinary dividend of €0.50 per share for 2017 as well as a special dividend of €1 per share “in relation to the nuclear tax refund”.

The company also said that the refund helped it reduce net debt by €1.2bn to €21.5bn. Earnings before interest, tax, depreciation and amortisation for the first half stood at €3.2bn, compared to €3bn last year.
Rolf Martin Schmitz
Rolf Martin Schmitz, chief executive, said RWE was “on track” and its financial situation “provides us with a solid foundation for the future”. “And we made the right decisions in defining our strategy,” he added in a statement.

RWE last year created a new subsidiary, Innogy, which contains its clean businesses ” renewables, power grids and retail energy services. The company was listed on the Frankfurt stock exchange in October. RWE retains a 74 per cent stake. RWE retains the older businesses ” lignite and nuclear, and conventional power in Europe. RWE said the nuclear fuel tax refund boosted its net income to €2.7bn, up from €457m in the first half of 2016.

While supply and trading performed well, other divisions saw big declines in earnings. In lignite and nuclear, adjusted ebitda fell from €471m last year to €401m, a drop of 15 per cent which the company blamed on lower wholesale electricity prices compared to last year. European power earnings fell to €222m from €316m last year.

Meanwhile margins at the company’s gas-fired power plants were higher than expected in the first half, it said on Monday, and it now expects full-year profits to be at the upper end of its outlook range.

RWE said it would also benefit from the sale of most of its former 1,140 megawatt oil-fired Littlebrook power station in Britain to property investor Tritax Big Box REIT (BBOXT.L), which is expected to be completed later this year.à‚ 

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