RWE Shares Fall Over Concerns About Energy Prices
By Pierre Bertrand
RWE shares fell Friday after the German energy company said it expects lower earnings in 2024 amid a drop in European energy prices.
At 1531 GMT on Friday, shares traded 7% down to EUR34.06.
The German energy company said it expected its 2024 earnings at the lower end of the range given during its November capital markets day.
It guided then for between 1.9 billion and 2.4 billion euros ($2.06 billion-$2.60 billion) in adjusted net income.
European wholesale market energy prices have significantly dropped over recent weeks, RWE said Friday.
RWE's warning came as the company released preliminary 2023 earnings, which it said exceeded the outlook it had for the year.
"RWE tends to assume very conservative targets for its trading business. Still, we believe that the consensus is likely to decrease in order to reflect lower commodity price assumptions. This latter point is likely to be the market focus," JPMorgan analysts said in a research note.
RWE said it will release its full year-end result on March 14.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
(END) Dow Jones Newswires
January 26, 2024 10:54 ET (15:54 GMT)
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