- Earnings in line with expectations
- Outlook for 2013 confirmed
RWE made a satisfactory start to the 2013 financial year. The sale of the Czech long distance gas network operator NET4GAS in March was a clear step forward in increasing the Group’s financial headroom. Business performance progressed as expected during the first quarter. RWE’s revenue increased slightly, to just over EUR 16 billion, while EBITDA decreased marginally, to EUR 3.0 billion. The operating result was somewhat below the figure for the previous year, at EUR 2.3 billion. Recurrent net income was in the order of the previous year’s figure, at EUR 1.3 billion. Positive effects from the efficiency programme and improvements in gas procurement conditions were contrasted by substantial earnings shortfalls in the conventional power generation business. As explained earlier in the year, these factors will continue to have an impact on business performance for the year as a whole. RWE confirms the earnings forecast that it published in March for the 2013 financial year.
Electricity generation – electricity sales – gas sales
Energy usage in our core markets was primarily subject to negative economic effects, whereas the cold weather increased the need for heating. RWE generated 62.1 billion kilowatt hours (kWh) of electricity, up 3% on the same quarter last year. Electricity generation from gas posted the biggest increase in absolute terms, as the gas-fired power plant at Pembroke (UK) was commissioned in September 2012. By contrast, electricity generation from lignite declined, since all of the German 150 MW units had been decommissioned by the end of 2012. Electricity generation from renewables increased from 3.5 billion to 4.2 billion kWh.
Electricity sales volume declined by 4%, to 70.9 billion kWh. This is mainly due to the fact that RWE stopped special electricity auctions for industrial customers in Germany at the end of 2012.
As a result of the cold weather, RWE’s gas sales volumes were up 12% to 126.9 billion kWh year-on-year in the first quarter of 2013. This affected all markets in Northwestern Europe and was even more evident in Germany as distributors purchased higher volumes from RWE.
Progress in strengthening the capital base
With the sale of the Czech long-distance gas network operator NET4GAS to a consortium made up of Allianz and the Canadian infrastructure fund Borealis in March, RWE took an important step in increasing its financial headroom. This transaction is scheduled for completion in the second half of 2013. In addition, RWE sold interests in two UK wind farms. However, RWE Innogy remains the majority owner. The new shareholding structure serves as a model, since it shows how RWE is able to place the burden of the transformation of the energy market on several shoulders and thus increase its room for financial manoeuvre.
Outlook for 2013
RWE confirms the outlook for 2013 announced earlier in the year. The Group expects an operating result in the order of EUR 5.9 billion and recurrent net income of around EUR 2.4 billion. Capital expenditure of about EUR 5 billion is planned. In the final phase of the new-build power plant programme, this roughly corresponds to last year’s level. Net debt and leverage factor are also expected to be similar to the figures achieved last year.
This press release contains forward-looking statements regarding the future development of the RWE Group and its companies as well as economic and political developments. These statements are assessments that we have made based on information available to us at the time this document was prepared. In the event that the underlying assumptions do not materialise or additional risks arise, actual performance can deviate from the performance expected at present. Therefore, we cannot assume responsibility for the accuracy of these statements.
Head of Corporate Communications
T: +49 201 12 15120
M: +49 162 265 55 51
Head of Group Press Relations
T: +49 201 12 17441
M: +49 162 251 5302