RWE Targets Upper Earnings Range in 2020

German energy group RWE said on November 12 it expected to reach the upper range of its earnings forecasts for 2020, after enjoying a climb in income in the first nine months of the year. RWE's target for adjusted core earnings (Ebitda) is €2.7-3.0bn ($3.2-3.5bn), while its guidance for adjusted earnings before interest and tax (Ebit) is €1.2-1.5bn.

The company earned €2.2bn in adjusted Ebitda in January through September, up from €1.97bn in the same period last year. Adjust Ebit came to €1.1bn, versus €891mn a year before. CFO Markus Krebber said the strong operating results showed that RWE had "weathered the coronavirus crisis well."

RWE achieved higher earnings in most of its business segments. Adjusted Ebitda at its coal-fired and nuclear power plants surged by 86% to €381mn, while earnings from its hydropower, biomass and gas segment increased 29% to €382mn. Offshore wind profits were up 12% at €738mn, while onshore wind and solar income climbed 8% to €336mn.

The company's weakest performer was its supply and trading business, which saw earnings dip 30% to €399mn, although it said this was still a "very satisfactory" result given the conditions.

RWE is targeting an adjusted net income of between €850mn and €1.15bn for the full year, after reporting a growth to €762mn in the first nine months. RWE also said it would follow through on its plan to increase dividends to €85/share for 2020.

"Our successful capital increase in summer will enable us to accelerate our mid- to long-term growth in renewables," Krebber said, adding that the company would expand its wind and solar power portfolio to 10 GW by the end of the year.