For the big utilities, the energy crisis does not mean that their profits are falling. On the contrary: the energy companies RWE and Vattenfall have earned billions in recent months.
The utility RWE has confirmed its forecast for the year after profit increases in the first quarter. The Essen-based company primarily achieved higher earnings in international power generation in the water/biomass/gas segment. Here, earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 263 million euros to 1.177 billion euros. Alongside energy trading, solar and wind energy, this area is part of RWE’s core business.
In addition, there were no burdens as a result of the sanctions on Russian hard coal deliveries in the energy trading segment. The energy trading segment is expected to contribute a positive profit contribution to the quarterly results after a loss in the first quarter last year.
RWE confirms annual forecast
According to preliminary figures, RWE will close the first quarter with an adjusted EBITDA of 2.798 billion euros. RWE earned 1.67 billion euros net. On May 11, the utility will publish the full figures for the first quarter.
RWE has confirmed its profit forecast for the year as a whole: shareholders are to receive a dividend of EUR 1.00 for the 2022 financial year. That would be 10 cents more than a year ago. The dividend is usually paid in Germany on the third trading day after the general meeting. The RWE shareholders’ meeting will take place on May 4th. A virtual general meeting is planned.
After the figures were published, Deutsche Bank confirmed RWE with a “buy” rating and a price target of EUR 50. DZ Bank renewed its “buy” assessment and still sees the fair value at 51 euros. JP Morgan emphasized that the Essen-based company had already achieved almost half of the operating result for the full year after the first quarter. In the early afternoon, RWE shares were up 2.1 percent at EUR 42.47.
Vattenfall sees calming down on the energy market
The Swedish group Vattenfall earned 11.8 billion Swedish crowns in the first three months of the year. This corresponds to 1.04 billion euros and was almost twice as much as in the previous year. Sales had increased by almost two-thirds. According to Vattenfall, the situation on the energy market has calmed down after strong price fluctuations in the previous year.
Increased gas supplies, a milder winter and higher nuclear power production in France caused electricity prices in mainland Europe to fall in the first quarter, the company said. However, this also has a negative effect on Vattenfall’s profit development.