RWE's Earnings Decline as Expected But Wind, Solar Units Power It Past Forecasts

By David Sachs

RWE's first-half earnings beat expectations but fell overall as a record period for its wind and solar businesses failed to offset declines in other segments.

The German energy company said Wednesday that favorable weather and new facilities boosted its wind and solar segments. But its other power-generation segment--which includes natural gas, coal, hydropower and biomass--dragged earnings as expected.

The company's supply-and-trading arm also weighed on results, it said.

Group adjusted net income slipped to 1.36 billion euros ($1.50 billion) from 2.38 billion euros in the first half of last year. Forecasts for the figure were at 1.275 billion euros, according to a company-compiled consensus.

Adjusted earnings before interest and taxes fell to 1.93 billion euros from 3.19 billion euros, beating the forecast of EUR1.83 billion. Adjusted earnings before interest, taxes, depreciation and amortization tumbled to 2.90 billion euros from 4.14 billion euros, RWE said. The company-compiled consensus had pegged adjusted Ebitda at 2.82 billion euros.

RWE reiterated its full-year guidance.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

August 14, 2024 01:52 ET (05:52 GMT)

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