RWE Net Profit Rises Despite Revenue Hit From Electricity Prices

By Adria Calatayud

RWE reported a higher net profit for the first quarter, boosted by income from the valuation of derivative contracts, but said lower electricity prices weighed on revenue and adjusted earnings.

Net profit for the quarter was 1.92 billion euros ($2.08 billion) compared with EUR1.60 billion in the same period last year, the German utility said. Excluding exceptional items, adjusted net profit fell 39% to EUR801 million.

External revenue dropped to EUR6.63 billion from EUR9.34 billion, RWE said.

Adjusted earnings before interest, taxes, depreciation and amortization fell to EUR1.71 billion from EUR2.31 billion.

The company said the decline in adjusted earnings was mainly due to a lower result in its flexible-generation segment, which was as expected.

Analysts expected RWE to post a quarterly adjusted Ebitda of EUR1.57 billion and an adjusted net profit of EUR646 million, according to consensus estimates provided by the company.

For 2024 as a whole, the company continues to expect 2024 results at the lower end of its guidance range of EUR5.2 billion to EUR5.8 billion for adjusted Ebitda and EUR1.9 billion to EUR2.4 billion for adjusted net profit.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

May 15, 2024 01:37 ET (05:37 GMT)

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