Home News UPDATE: RWE’s net income up in first quarter of unexpectedly strong

UPDATE: RWE’s net income up in first quarter of unexpectedly strong


Martin Rapp
FRANKFURT (Dow Jones) – The energy company RWE has its Profit in first quarter thanks to economic and weather conditions higher energy demand increased more than expected. The first-time inclusion of the Dutch utility Essent contributed to Growth. The Essen Mutual Group reiterated on Wednesday his Forecast of a significant earnings growth for the full year.
Adjusted for special items recurrent net income, the RWE uses as a basis for the declaration of dividends, got into the Months from January to March by more than 15% to EUR 1.74 billion. Dow Jones Analysts surveyed Newswires had expected an average of only 1.67 billion EUR.
According to business communication, electricity sales compared to the Year by 5% and gas sales increased by 31%. This has in the past Essent acquired years contributed. RWE also referred to the increased demand and sees this as a sign of a beginning economic recovery. The attractive consumption also led to a 18% increased generation of the Group.
RWE increased its sales in the first three months rose 5% to 15.3 Billion EUR. Earnings grew disproportionately. Before interest, taxes depreciation and amortization climbed the profit (EBITDA) increased 16% to 3.6 billion EUR. The operating RWE pointed to a growth of 14% to EUR 3 billion. The analysts surveyed had expected around EUR 100 million less.
The net result of all influences, including decreased with almost 11% to EUR 1.56 billion slightly more than by the observers expected. This was, according to RWE the elimination of valuation gains responsible, which in 2009 had driven the result.
Essent contributed to operating income of EUR 281 million a RWE In EUR. Last year was not the acquisition in the figures contain. Moreover, the business in the UK and in Central Eastern Europe and increased earnings. This development could not be extrapolated for the full year, the limited Chief Executive Juergen Grossmann quarterly report.
The electricity production in Germany and the oil and Gas-producing subsidiary Dea yielded higher profits than last year. In that area RWE benefited his own words from lower fuel costs, at the latter by higher oil prices. The commercial sector has, however – as expected by analysts – and cut off their weaker Quartered more than last year’s results.
The RWE Group confirmed on submission of the Erstquartal figures his annual forecast. EBITDA should increase by 5% to 10% are the operating and recurrent net income by each around 5%. This will help reduce costs, compared to the 2010 should be the base year 2006 to EUR 700 million lower. Last year, The Group operating profit of EUR 7.1 billion and a sustainable Net profit of EUR 3.5 billion generated.
A strong start to the year, "analyst Michael depreciated equinet Shepherd the quarterly figures from RWE. They were consistently out better than expected. The good outlook for the full year was quite realistic estimates of the analyst. RWE share up in the first Trading hours by 1.4% to 60.57 EUR for. After initial losses, also The DAX is now turned into the Plus and shows 0.7% stronger.


Website: www.rwe.com

-By Martin Rapp, Dow Jones Newswires;
+49 (0) 211-13 87 214, martin.rapp @ dowjones.com
DJG / mmr / rio
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(END) Dow Jones Newswires

May 12, 2010 04:06 ET (08:06 GMT)

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