RWE Posts Weak Results (Germany)
RWE AG said that its EBITDA decreased by 18% to €8.5 billion and the operating result declined by 24% to €5.8 billion in fiscal 2011.
Recurrent net income – the key determinant of the dividend – fell by 34% to €2.5 billion and revenue dropped by 3% to €51.7 billion. .
“We have introduced the necessary measures to get us through the trough quickly”, said RWE CEO Dr. Jürgen Großmann about the challenging years ahead. He explained that the first successful steps had been taken and some of these measures were already having an impact on the earnings situation, which was expected to stabilise during the current year. “We are therefore confident of maintaining the level of the previous year in 2012.” This trend, explained Großmann, would persist in 2013: “We will no longer receive any free CO2 allowances in 2013 and some earnings contributions will be lost as a result of the divestment programme. But we still expect to be on a par with the result of 2011 this year, too.” For 2013 and 2014, RWE has set itself new cost reduction and efficiency enhancement targets. The total volume amounts to around €1 billion, three quarters of which should be achieved in 2013.
In addition, the Group has been able to reduce the overall volume of its divestment programme to a maximum of €7 billion. The scope and selection of divestment activities will largely depend on the contribution any such sale can make to improving the leverage ratio. This programme is to be implemented by the end of 2013.
“The measures we have introduced create scope for sustainable future action and further investments in the expansion of renewables”, added Großmann. “In 2011, we spent nearly €3 billion on environmental protection and we are proud to have received the award from the European School of Management and Technology in Berlin as Europe’s most innovative energy utility.” Last year, RWE invested around €150 million in over 200 research and development projects.
LNG World News Staff, March 6, 2012