RWE's profits fell during the first nine months of 2018 as the German energy provider prepared to place a greater focus on renewables, the company reported on Wednesday.
RWE reported "stand-alone" earnings before interest, taxes, depreciation and amortization (EBIDTA) of 1.3 billion euros (1.47 billion U.S. dollars) between January and September, down from 1.7 billion euros during the same period last year. Adjusted net profits also declined sharply from 930 million euros to 645 million euros in the first three quarters of 2018.
Chief financial officer (CFO) Markus Krebber noted, however, that the earnings were in line with previous expectations. "We are very happy with the first three quarters of 2018," Krebber said. As a consequence, he confirmed an earlier forecast for RWE to record adjusted full-year EBIDTA of between 1.4 and 1.7 billion euros, and net profits of between 500 and 800 million euros.
"We will reach our operative goals for the year and can confirm the raising of the regular dividend to 70 cents which we pursued," a statement by Krebber read.
RWE highlighted on Tuesday that an energy sector deal which it has reached with German rival E.ON was progressing as planned. "At the moment, RWE, E.ON and Innogy are working intensively to complete the fusion control procedures as quickly as possible. The approval of the antitrust authorities is still expected to be obtained in the summer of 2019," the company wrote.
The shake-up of the German energy industry, which will witness the concentration of the renewable businesses of the dissolved RWE subsidiary Innogy in its mother corporation, was described as having charted a course for the company's future. The transaction will make RWE the second-largest offshore wind park operator and third largest renewable energy provider in Europe. Once completed, renewables will contribute 60 percent of corporate EBIDTA, compared to 20 percent from conventional energy generation.
First founded in Essen in 1898, RWE recorded gross revenue of 44.6 billion euros and employed more than 59,000 staff last year. The publicly-listed company is one of Europe's leading energy providers with operations in Germany, the United Kingdom, Belgium, Austria and Czech Republic among others.
Editor:Cherie
