German energy company RWE doubles net income in 2019

Source: Xinhua| 2020-03-12 20:31:45|Editor: xuxin
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BERLIN, March 12 (Xinhua) -- Adjusted net income of RWE in the fiscal year 2019 increased to 1.2 billion euros (1.4 billion U.S. dollars), more than doubling the 591 million euros recorded in the previous year, the German energy company announced on Thursday.

At the same time, the operating result of the German utility, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), increased from 1.5 billion to 2.1 billion euros.

"As one of the world's leading producers of electricity from renewables, we have an ambitious goal," said Rolf Martin Schmitz, chief executive officer (CEO) of RWE AG. "We want to be carbon neutral by 2040."

With the company transaction together with the German energy company E.ON which was largely completed last year, RWE now had a total portfolio of wind and solar power assets with a capacity of about 9 gigawatts (GW) and "a stable earnings profile."

RWE noted that the acquisition of the minority stakes in two German nuclear power plants from E.ON at the end of September had also "improved earnings."

Earlier this year, the German government adopted a detailed schedule for the phase-out of coal-fired power generation in Germany by 2038. The first unit operated by RWE is scheduled to be taken of the grid this year.

RWE would "bear the main burden of the lignite phase out" which would stretch the company to its limits. According to the German energy company, a reduction of about 6,000 jobs is planned by 2030.

For 2020, RWE is expecting adjusted EBITDA to increase to between 2.7 billion and 3.0 billion euros, while the target for adjusted net income of between 0.85 billion and 1.15 billion euros was below this year's results.

By 2022, RWE is planning to invest a net 5 billion euros in the continued expansion of its renewable energy business.

Following the announcement, shares dropped by around 12 percent on early trading on Thursday. RWE was the biggest loser of Germany's 30 largest companies listed in the DAX which suffered heavy losses of more than 5 percent on early trading.