Event in Progress:
Discover the latest content that has just been published on Research Tree
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.
Share: