RWE records ‘thoroughly respectable’ Q1 performance

RWE has confirmed its full-year targets after a satisfactory first quarter, with its renewables and energy trading divisions making telling contributions.à‚ 

“Overall, we have achieved a thoroughly respectable result for the first quarter,” said chief financial officer, Bernhard Guenther. “RWE confirms its earnings outlook for the group’s business performance this year.”
RWE CEO Peter Terium with chief financial officer, Bernhard Guenther
Full-year underlying or operating profit was projected to total between EUR2.8bn and EUR3.1bn ($3.2-3.5 billion) and adjusted net income was “likely to be in the range of EUR0.5bn- EUR0.7bn,” RWE said.
That compares with operating profit of EUR3.8bn and net profit of EUR1.1bn in 2015. à‚ 
Operating profit grew by 7.1 per cent to EU1.7bn, while revenues declined by 5.9 per cent to EUR13.7bn.

Operating profit in the conventional power generation business slumped by 20 per cent in the January-March period, however the utility compensated for that in other departments.

“Development in the renewables division was pleasing,” said finance chief Guenther, adding that the energy trading division “made an unusually high earnings contribution.”

European utilities have been hammered in recent years from a combination of weak electricity wholesale prices and intense competition from heavily-subsidized renewable energy sources. à‚  à‚ 

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