RWE Raises Outlook for Fiscal 2022

  • Positive earnings trend in the international core business led to an increased earnings forecast for fiscal 2022
  • Adjusted EBITDA for RWE Group now expected to be between €5.0 billion and €5.5 billion 
  • In the core business, adjusted EBITDA now expected to be between €4.3 billion and €4.8 billion particularly driven by higher earnings from Hydro/Biomass/Gas and Supply & Trading
  • RWE’s German Coal/Nuclear business did not benefit from higher power prices

PVTIME – RWE has delivered a strong operational performance in the first six months of 2022. In particular, the Hydro/Biomass/Gas segment as well as Supply & Trading performed well on the back of volatile markets. Preliminary figures for H1 2022 are available in the table below. In contrast to this, RWE recorded a €850 million write-off of a hard coal contract in Q1 2022 due to UK sanctions against Russia. It was reported in the non-operating result.

This positive earnings trend is expected to continue, which has prompted RWE to increase the earnings forecast for the full year. RWE Group’s adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) is now expected to be between €5.0 billion and €5.5 billion. This is driven by higher earnings from RWE’s core business, where RWE expects adjusted EBITDA to range between €4.3 billion and €4.8 billion. Whereas RWE expects the Coal/Nuclear business to stay within the previously guided range as RWE has sold generation volumes already prior to the year. In line with EBITDA growth, adjusted EBIT is forecast to be between €3.4 billion and €3.9 billion for 2022. Adjusted net income is expected to reach €2.1 billion to €2.6 billion at year-end.

Michael Müller commented on the planned dividend for FY 2022: “We are committed to the success of the energy transition and to our shareholders. We confirm our dividend target of €0.90 per share for fiscal 2022.”

“Our earnings development in the first half of the year was marked by a very strong performance of the Supply & Trading division. Furthermore, we record a higher deployment of our international generation portfolio of our core business. On the back of this, we are pleased to raise our forecast for the RWE Group for fiscal 2022. This puts us in an even stronger position to deliver our ‘Growing Green’ strategy by allowing further investments into the energy transition.” Michael Müller, CFO of RWE AG