RWE shares are higher Tuesday, after the German energy firm reported first half earnings that were in line with expectations. The business also said that its deal to sell it Innogy stake to E.ON was progressing well. RWE added it remains on track to achieve its full year 2018 targets.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
By 1105 BST, RWE shares were 2.78% higher at €21.47. The stock has been broadly lower in recent weeks trading activity.
RWE earnings details
RWE published its H1 earnings report earlier Tuesday, which showed that while revenues and earnings were a little lower than the same period in 2017, they were in line with forecasts.
Its EBITDA hit €1.1 billion in the first half of 2018, compared with €1.4 billion in the same period a year earlier. It’s net income, meanwhile, totalled €683 million, below the €883 million in H1 2017.
“We achieved our operating goals in the first half of 2018 and are therefore right on track for the full year,” said RWE’s CEO, Rolf Martin Schmitz.
“The transaction with E.ON is making good progress. As one of Europe’s leading electricity producers, we will have an even broader and stronger portfolio of assets. The ‘new’ RWE stands for an energy transition with security of supply,” he added.
RWE also said that its previous 2018 full-year outlook remains in tact and achievable. The German energy provider is anticipating a full-year adjusted EBITDA of between €1.4 billion and €1.7 billion. It also continues to forecast adjusted net income for 2018 of between €500 million and €800 million.
The German firm added that it is net debt in the first half of 2018 was €3.7 billion, around €800 million lower than at the end of 2017.
In addition, RWE said its earnings prospects are improving. As such, it’s CFO, Markus Krebber said they are still planning to “raise the ordinary dividend for fiscal 2018 by 40%, from €0.50 to €0.70”.