Germany’s RWE Reports Lower-than-Expected Core Profit for First Half

Germany’s largest power producer, RWE, recently released its financial results for the first half of the year, revealing lower-than-expected core profit. The company cited weak wind conditions and a subdued trading business as contributing factors to this outcome.

During the first half of the year, RWE’s adjusted earnings before interest, tax, depreciation, and amortization dropped by over a quarter to 2.14 billion euros ($2.50 billion), falling short of the 2.24 billion euro estimate provided by analysts in a poll conducted by the company.

Despite these challenges, RWE, which is also the world’s second-largest developer of offshore wind projects, remains optimistic about its future prospects. The company reaffirmed its outlook for 2025 and its mid-term guidance for earnings per share for 2027 and 2030.

Notably, the profit generated by RWE’s supply and trading division, a segment known for its volatility and sensitivity to market fluctuations, plummeted by 95% to 16 million euros in the first half of the year.

Following the release of the financial results, RWE’s shares were expected to open 1.3% lower ahead of the 0700 GMT market open, reflecting investor sentiment towards the company’s performance.

Looking ahead, RWE, which has a significant portion of its renewable energy capacity located in the United States, maintains its forecast of achieving adjusted earnings before interest, tax, depreciation, and amortization in the range of 4.55-5.15 billion euros in 2025, along with a dividend of 1.20 euros per share.

(Source: Reuters – Reporting by Christoph Steitz; Editing by Ludwig Burger)