RWE AG, the German energy firm, announced on Wednesday a decline in its Group earnings over the first nine months of fiscal 2024, as anticipated. This decline was primarily attributed to weaker performances in the Flexible Generation and Supply & Trading divisions, which outweighed gains made in the Offshore Wind and Onshore Wind/Solar segments.
For the first nine months, the company's adjusted net income was reported at €1.64 billion, a decrease from €3.10 billion in the same period last year. Adjusted EBIT fell to €2.51 billion from the previous year's €4.27 billion, while adjusted EBITDA was down to €3.98 billion from €5.71 billion. The company indicated that some figures from the prior year have been restated.
Despite these results, RWE reaffirmed its dividend target of €1.10 per share for fiscal 2024. Additionally, the company announced plans to initiate a share buyback program totaling up to €1.5 billion. This initiative is set to begin in the fourth quarter of 2024 and will extend over a period of up to 18 months.
Looking forward to fiscal 2024, RWE has adjusted its earnings projections upwards, citing improved prospects in the Flexible Generation and Supply & Trading segments. The company now projects that its adjusted net income and adjusted EBITDA will hit the midpoint of the forecast range at the Group level. Initially, it had expected these figures to trend towards the lower end due to a significant decline in electricity market prices.
For the year, RWE anticipates an adjusted net income ranging from €1.90 billion to €2.40 billion, with adjusted EBIT between €3.20 billion and €3.80 billion, and adjusted EBITDA between €5.20 billion and €5.80 billion.