Germany's RWE raises outlook on trading, gas plants
FRANKFURT, July 25 (Reuters) - RWE, Germany's largest utility, on Tuesday raised its 2023 core earnings guidance, helped by higher margins at its gas-fired power pants and better-than-expected profits at its trading business.
The company, which is due to release first-half results on Aug. 10, now expects adjusted core profit (EBITDA) of 7.1 billion to 7.7 billion euros ($7.8 billion to $8.5 billion), up from 5.8 billion to 6.4 billion euros previously.
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Frankfurt-listed RWE shares rose 2.1% following the news.
"The development of our earnings in the first half of 2023 was marked by a very successful deployment of our international power plant portfolio and an exceptionally strong performance in energy trading, which exceeded our expectations," finance chief Michael Mueller said.
He said RWE would continue to invest in energy transition projects and ensure that its shareholders would have a fair share in the company's success, confirming its dividend target of 1.00 euro per share for 2023.
The company now expects adjusted net profit of 3.3 billion to 3.8 billion euros this year, up from 2.2 billion to 2.7 billion.
Preliminary adjusted EBITDA for the first half more than doubled to 4.5 billion euros, while adjusted net profit nearly tripled to 2.63 billion.
RWE shareholder ENKRAFT, which says it holds 1 million shares, said the group benefited from higher electricity prices, along with the entire industry.
"The addition of new renewable generation capacity in Germany remains marginal - RWE continues to be outpaced in Germany by others," ENKRAFT Managing Director Benedikt Kormaier said.
($1 = 0.9056 euros) (Reporting by Christoph Steitz Editing by Mark Potter and Marguerita Choy)