RWE Increases Net Income in 2009

RWE AG reported a slight revenue  decline to EUR 48 billion in 2009, while EBITDA rose by 4% to EUR 9.2 billion. The operating result slightly exceeded the forecast and improved by 4% to EUR 7.1 billion. Recurrent net income, on which the proposed dividend of  EUR 3.50 per share is based, is up 5%. RWE’s latest takeover, the Dutch utility Essent N.V., contributed EUR 141 million to the operating result for the first time.

Demand for energy declined in all RWE markets, due to the economic crisis. The Group generated and externally procured a total of 300 billion kWh, corresponding to a decrease of  10% compared with 2008. Electricity sales declined by 11% to 283 billion kWh, including some 7 billion kWh contributed by Essent in the last quarter. However, the Germany division managed to increase electricity sales by 7%, as new customers were acquired. Gas sales slightly exceeded the level of the previous year, coming in at 332 billion kWh, as a result of the first-time consolidation of Essent. Otherwise they would have fallen by 7%.

“We expect that it will take several years for the European economy to return to the level seen in 2008”, said Juergen Grossmann, CEO of RWE AG. Therefore, and due to delays in power plant and gas and oil production projects, RWE anticipates an increase in recurrent net income of an average of around 5% per annum instead of around 10% as previously expected for the medium term. For 2010 RWE expects the operating result  and the recurrent net income to grow by 5%  as well. Despite the start of the auctions of CO2 allowances in 2013, the company believes to be able to exceed its 2009 earnings level. Dividend is expected to at least match the previous year’s dividend for each fiscal year from 2010 to 2013.

Source: RWE AG

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