German utility company RWE AG has reported a decline in its net income for the financial year 2023, attributable to shareholders. The amount diminished to €1.45 billion from €2.72 billion in the previous year.
The earnings per share also saw a reduction, falling to €1.95 from €3.93 a year ago. However, the adjusted net income rose to €4.54 billion compared to the €3.25 billion last year. The adjusted net income per share saw an increase as well - €6.10 compared to €4.71 in the previous financial year.
For the same year, the adjusted EBIT rose to €6.35 billion as opposed to €4.57 billion the year before. The company's adjusted EBITDA amounted to €8.38 billion, showing an increase from last year's €6.31 billion. The same can be said for adjusted EBITDA's core business figures, which rose to €7.67 billion from €5.56 billion in the prior year.
However, the external revenue, not counting the natural gas tax or electricity tax, dropped to €28.57 billion from the €38.42 billion the previous year. Similarly, the power generation decreased to 129,701 Gwh from 156,794 Gwh the year before.
Despite this, RWE has plans to increase its dividend target to €1.00 per share for 2023, a jump from the €0.90 it stood at last year. Furthermore, plans to push it to €1.10 per share for the financial year 2024 have also been proposed.
Looking towards 2024, RWE predicts that it will be unable to match the impressive earnings from 2023, largely because of the recent substantial dip in power prices on the European wholesale markets. Nonetheless, it maintains an outlook range that now anticipates earnings to reach the lower limit of the forecast range.
For 2024, RWE still projects an adjusted net income of €1.90 billion to €2.40 billion, an adjusted EBIT between €3.20 billion and €3.80 billion, and the group's adjusted EBITDA between €5.20 billion and €5.80 billion.
