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RWE Posts Better-than-Expected H1 Profit on Gas-Fired Power Plants

FRANKFURT, Aug 14 (Reuters) - RWE, Germany's largest power producer, on Wednesday released higher-than-expected profits for the first half, supported by its fleet of gas-fired power plants that beat earnings expectations.

First-half adjusted core profit (EBITDA) fell 30% to 2.9 billion euros ($3.2 billion), beating the 2.8 billion forecast in a poll provided by the company. First-half adjusted net profit fell 43% to 1.36 billion euros, also higher than the 1.28 billion poll.

The group confirmed its 2024 outlook, expecting to reach the lower end of a 5.2 billion to 5.8 billion euro target range for adjusted EBITDA.

"Guidance now looks more conservative after better-than-expected H124 report. This should help shares today," said a Frankfurt-based trader.

The beat was mainly driven by higher-than-expected profits at RWE's flexible generation division, which comprises its gas-fired power plants and which posted adjusted EBITDA of 1.014 billion euros, compared with the 938 million poll.

($1 = 0.9100 euros)

Reporting by Christoph Steitz, Editing by Miranda Murray

Source: Reuters


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