RWE 1Q Profits Lower, as Power Margins Weaken
German energy group RWE said May 15 1Q net profit declined by 34.5% year on year to €620mn. Net debt of €20.9bn at end-March 2018 was €0.7bn more than at the end of 2017, due to pension provisions.
RWE's adjusted earnings before interest, tax and depreciation and amortisation (Ebitda) were €1.9bn in 1Q, compared to €2.1bn in 1Q2017.
Its European power generation segment's 1Q adjusted Ebitda was €159mn (1Q2017: €167mn) as margins for gas and hard coal-fired power stations were slightly weaker year on year, although UK capacity market payments had a positive impact. RWE's supply and trading business made an adjusted Ebitda loss of €24mn.
RWE's gas sales to third parties were flat year on year at 96 terawatt-hours (8.9bn m3) while its power sales were 1% lower at 69.3 TWh.
RWE said its transaction with E.ON, announced mid-March and involving a comprehensive exchange of assets including the planned breakup of RWE-controlled Innogy, is proceeding as planned. "With this transaction, RWE will focus on electricity generation and trading in the future. RWE will become No. 3 in renewables in Europe," the company said. On April 27, E.ON submitted its voluntary public offer to buy out the minority shareholders of Innogy. The latter, however, has indicated it may divest certain of its Czech gas assets before the E.ON or RWE deals are done.