RWE shifts to profit of €1.9B last year

Tuesday, 13. March 2018 07:27

Energy producer RWE AG reported €1.9 billion in net income for 2017 on Tuesday, where the European power division outperformed guidance. The result compares to a loss of €5.7 billion for the year before and translates to a rise of 5.9% in adjusted profit, to €1.23 billion. "We are in good shape again, with a solid financing structure, lower debt and a higher equity ratio. In operational terms, our trading business did well in 2017, along with our power generation activities," said chief executive Rolf Martin Schmitz.

The closely tracked adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in 7% higher at €5.8 billion, while net debt declined 11% to €20.2 billion. The company revealed the dividend should be €1.5 per share, including a special payout of €1. For the current year, the basic dividend is seen at €0.7, according to the press release.

RWE forecasts adjusted EBITDA of €4.9 billion to €5.2 billion with net income between €700 million and €1 billion, a decrease attributed to low power prices, but alongside cost cutting. The natural gas giant's standalone adjusted EBITDA, which includes Innogy, grew 11% to €2.1 billion. Adjusted profit in the segment was €973 million against a loss of €20 million for 2016.

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