RWE reports better than expected H1 profits on gas-fired electricity plants

RWE, Germany’s largest electricity producer, released on Wednesday higher-than expected profits for the first six months, supported by a fleet of gas-fired plants that exceeded earnings expectations.

The company's poll predicted a core profit of 2.8 billion euros, but the adjusted EBITDA for the first half fell to 2.9 billion. The first-half adjusted net loss fell by 43%, to 1,36 billion euros. This was also higher than the poll of 1.28 billion.

The group confirmed their 2024 outlook. They expect to achieve the lower end of an adjusted EBITDA target range between 5.2 billion and 5.8 billion euros.

The guidance now appears more conservative following the better than expected H124 report. A Frankfurt-based trader said that this should boost shares today.

The company's shares were up by 1.3% at 0601 GMT in pre-market trading, making it the largest gainer among German blue chips.

The RWE flexible generation division's adjusted EBITDA was 1.01 billion euros, as opposed to the polled 938 million.

(source: Reuters)