In This Article:
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Adjusted EBITDA: EUR5.7 billion for 2024, exceeding the midpoint of guidance.
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Adjusted Earnings Per Share (EPS): EUR3.1, surpassing the guidance midpoint.
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Share Buyback Program: EUR1.5 billion until Q2 2026.
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Planned Investments (2025-2030): Reduced by 25% or EUR10 billion, now planning EUR35 billion net.
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CO2 Emission Reduction: 13% decrease in 2024 compared to the prior year.
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Dividend Increase: Targeting an increase by EUR0.10 to EUR1.2 per share for 2025.
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Offshore Wind EBITDA (2025): Expected range of EUR1.3 billion to EUR1.7 billion.
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Onshore Wind and Solar EBITDA (2025): Expected range of EUR1.65 billion to EUR2.15 billion.
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Flexible Generation EBITDA (2025): Expected range of EUR1 billion to EUR1.4 billion.
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Adjusted Operating Cash Flow (2024): EUR5.9 billion.
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Leverage Factor (End of 2024): 2.0, targeting closer to 3.0 times in 2025.
Release Date: March 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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RWE AG (RWEOY) delivered strong financial and operational performance in 2024, with adjusted EBITDA of EUR5.7 billion, exceeding the guidance midpoint.
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The company introduced a EUR1.5 billion share buyback program, demonstrating its commitment to returning capital to shareholders.
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RWE AG (RWEOY) achieved a 13% reduction in CO2 emissions in 2024, aligning with its decarbonization goals.
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The company has a robust pipeline with 12.5 gigawatts of capacity under construction, ensuring future growth.
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RWE AG (RWEOY) confirmed its long-term target of EUR4 adjusted earnings per share by 2030, indicating confidence in sustained growth.
Negative Points
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RWE AG (RWEOY) faces higher uncertainty in the investment environment, leading to a 25% reduction in its 2030 investment program.
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The company is cautious about additional investment commitments due to geopolitical tensions and energy policy uncertainties, particularly in the US.
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RWE AG (RWEOY) has increased its internal return requirements, which may limit future investment opportunities.
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The company expects 2025 to be an earnings trough as earnings in Flexible Generation and Trading normalize.
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RWE AG (RWEOY) has reduced planned net investments by EUR10 billion for the period 2025 to 2030, potentially impacting long-term growth.
Q & A Highlights
Q: Could you provide details on the potential RWE installations for the 20 gigawatts of CCGT the incoming German government is discussing? What sort of CapEx are we talking about, and how quickly could you begin construction? A: Markus Krebber, CEO: We are well-positioned to secure a significant portion of this capacity, given our current 20% market share in Germany. We have pre-contracts with suppliers and reserved turbine slots. However, we will only invest if we achieve very attractive returns, as competition is limited.