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The German giant, which has become more American-European since the ConEdison integration this year, is stepping up its 2030 targets by raising its global ambitions for the deployment of renewable capacity from 50GW to 65GW installed. While the previous target had been sounding a bit modest given the group’s solid financial footing, this new plan may seem ambitious at a time when the competitors have recently revised their renewable energy growth targets downwards.
Companies: RWE AG
AlphaValue
A solid set of results driven by a strong Supply and Trading performance mostly impacted by a base effect in 2022, and a residual lagging effect due to forward contracts hedged last year at attractive prices. The commissioning of new onshore capacity and the consolidation of the 3GW portfolio from on Edison Clean Energy Businesses, Inc. in the Q1 had a positive impact which was nevertheless mitigated by unfavourable weather conditions and lower achieved prices.
Without surprises and in line with the preliminary figures published on July 25, RWE reported robust earnings with an EBITDA of €4,540m for H1 23, marking a substantial 113% increase compared to vs €2,124m in H1 22. As a result, RWE announced an increase in its guidance for FY 2023.
A strong set of first quarter results with RWE reporting material progress in the different business units and particularly in hydro/biomass/gas, as well as in the supply & trading activities. Despite the additional green capacities installed further to the acquisition of Con Edison Clean Energy in the US notably, the group didn’t manage to post a significant rise in this onshore wind/solar segment, given the lower electricity prices combined with lower wind resources and regulatory intervention
As expected, RWE published a historical set of results after a record year characterised by unprecedented volatility in the commodities markets but also thanks to the commissioning of new renewable assets in wind and solar. There was a 22% rise in power generated from renewables in 2022 despite wind speed remaining below its long-term average. The main challenge in 2023 for the German energy giant will be to deliver a 11% increase in the dividend to €1/share against a backdrop of normalising ene
RWE posted another good quarter, reporting strong results in the core-business mainly driven by growth in the hydro/biomass/gas segment but also the supply and trading activities. Again, RWE confirmed that, like for other German utilities, it is one of the biggest beneficiaries of the volatile and soaring energy markets and this third quarter was no exception to the rule. Mild weather during the autumn supported the energy supply in Europe as gas could remain in storage, in reserve for the comin
RWE confirmed the strong performance at the EBITDA level unveiled two weeks ago. The half-year net income is already on a par with the last full-year, and up 80% yoy. We note a strong positive on the net cash position, which improved from €0.4bn to €1.9bn over a six-month period. Trading activities and merchant generation are the obvious drivers. Consequently, the guidance was materially upgraded: +38% for EBITDA, +57% for net income. In other words, a cash machine.
RWE released a strong set of results, ahead of expectations, pushed one more time by the Supply & Trading segment. The group is managing its operations well amidst a difficult environment, thus providing reassuring signals. The only cloud was a €850m write-off related to a Russian hard coal contract. Threats of windfall taxes in Germany seem low risk for now.
RWE confirmed its FY21 solid results unveiled in mid-February, as well as its guidance for 2022 even if it does not reflect the war in Ukraine yet. More importantly, the group provided visibility on its (relatively low) exposure to Russia and the flexibility of its thermal fleet. Even if liquidity is not a problem yet, this is particularly due to coal plants that should become the group’s new cash cow in 2022. In short: long RWE, but be careful of regulations…
What if the best solution for the energy transition were … nuclear power? Nuke is back at the heart of political debates in the context of the current energy crisis and massive but insufficient investments in renewables. This short review provides an overview of nuclear power in Europe and speculates on options. This ‘nuke optionality’, hinging on a favourable green taxonomy, is a game-changer for EDF, Centrica, Fortum but also Engie, Iberdrola, Enel and EDP.
Mixed half-year figures for the German utility: despite beating analysts’ estimates, RWE’s adjusted EBITDA was down to €1.75bn, declining 4.5% year on year. The drop in EBITDA was mainly due to adverse wind conditions in Europe and to an unprecedented cold snap in Texas during February 2021. However, the company was able to upgrade its FY21 outlook, on the back of an outstanding performance of the Supply & Trading division in H1 21, in which EBITDA jumped +63%.
A difficult but expected quarter for the German utility. Adjusted EBITDA was driven down by 33% mainly due to the sharp impact from the Texas cold snap (€-400m) and adverse wind conditions in Europe. The earnings forecast and dividend policy are, however, confirmed and seem realistic for the full year, despite non-recurring items. The promising outlook for the following years remain constrained by the high exposure to thermal assets. But we’re betting on an accelerated green transition.
RWE published solid full-year results for 2020 that even exceeded the latest guidance given by the group. However, apart from the increase in the dividend, the FY21 guidance is disappointing as EBITDA and net income fall well below the consensus, mainly driven by extra costs due to the cold snap in Texas. In all, we reiterate our negative view on stock.
Good operating results over the first nine months of the year, but mainly backed by the first quarter. The group has confirmed its FY20 guidance and is now targeting the upper end of it. Looking ahead, with 85% of the ytd investments devoted to green activities, the group is well on track to achieve its objectives. In addition, the balance sheet is strong enough to accelerate investments – the group is said to be open to further external growth.
Companies: RWEEUR RWE 1RWE RWNFF RWE RWE 0HA0
RWE has successfully concluded its capital raising of c.10% of its market cap at a price of €32.55/share, or a 4.9% discount versus the last closing price (18/08/2020). The proceeds will be used to give some flexibility in expanding its renewables activities – as a reminder, the group is targeting a 1GW portfolio (wind + solar) by 2022, implying a capex need of at least €5bn. Operating guidance and dividend policy are unchanged and confirmed.
Research Tree provides access to ongoing research coverage, media content and regulatory news on RWE AG. We currently have 1 research reports from 2 professional analysts.
Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth
Companies: Strix Group PLC
Zeus Capital
Companies: Yu Group PLC
Liberum
Companies: FOG PEB KBT EMR TIME GETB JNEO
Cavendish
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
Companies: AEIT ROOF DGI9 INPP GSF SEIT USFP HICL ORIT BSIF TRIG NESF SEQI HEIT GRP GCP FSFL 3IN AERI PINT RNEW BBGI GSEO DORE TENT GRID CORD HGEN AEET
Hardman & Co
Cohort announces that its subsidiary SEA (Systems Engineering and Assessment Ltd.) has been awarded a major contract by the UK’s Ministry of Defence to provide Electronic Warfare Counter Measures (Increment 1a) (EWCM 1a) to the Royal Navy with a total value of at least £135m. This includes provision and support of SEA’s Trainable Decoy Launcher System, Ancilia. At the FY 24 interim results Cohort had commented on an overall “increased tempo” of order intake. The Group reported a closing order b
Companies: Cohort plc
Equity Development
Positives emerged, particularly in H2, as the recovery commenced within the kettle controls market. Billi was the architect of the revenue improvement, with LAICA also delivering a double-digit increase in the top line. Margins improved, notwithstanding a change in the mix. Encouragingly, investor concerns on debt were allayed with the careful management of cash, and latterly as bankers raised the net debt/EBITDA covenant to 2.75x. With further emphasis on costs and cash conservation and a lik
Companies: Luceco PLC
Companies: FOG TND BVXP ACC HDD
Quadrise continues to advance towards commercial revenues for its innovative fuel and biofuel technologies, with each of its projects approaching key milestones in 2024. Preparatory steps for the MSC Shipmanagement (MSC) fuel trials are now complete and fuel supply agreements are nearing finalisation. Quadrise will achieve its first licensing revenues on the successful completion of Valkor’s project financing (timing uncertain). Quadrise also successfully concluded its Morocco trial, paving the
Companies: Quadrise PLC
Edison
Companies: Flowtech Fluidpower plc
Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Testament to the strength of its highly engineered offer and global diversified customer base, total revenue increased an impressive 20.2% to £136.1m (organic +15%), with adj. PBT +7.5% to £31.7m (FY2022: £28.3m), 3.1% ahead of our estimate of £30.5m. Fully diluted (FD) adjusted EPS increased a more muted 2.6% (impacted by anticipated tax headwinds) to 368.5p (basic adj EPS 374.5p), 3.4% ahead of
Companies: Judges Scientific plc
WHIreland
Companies: Michelmersh Brick Holdings PLC
Canaccord Genuity
Companies: BILN IGP RBN SBTX
Gelion has reported in line H1 FY24 results that demonstrate continued strong cash management and steady progress in its pursuit of next generation lithium-sulphur battery technologies. Encouraging early test results justify last year’s IP acquisitions and validate Gelion’s Li-S battery technology plan, with additional progress expected to be reported in H2 alongside its pursuit of a strategic partner for its planned Advanced Commercial Prototyping Centre (ACPC) facility in Australia. There is a
Companies: Gelion PLC
Forterra’s FY23 (to 31 December) earnings were slightly higher than guidance, which was raised in January, with resilient pricing partly offsetting a steep fall in demand among its main end users, large housebuilders. Our estimates are broadly unchanged, other than reflecting a more conservative stance on the final dividend. Despite a cautious tone in the outlook statement, we believe the largest housebuilders may now rebound more strongly than smaller peers.
Companies: Forterra Plc
Progressive Equity Research
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