ESSEN (dpa-AFX) - The renewable energies business and energy trading have driven RWE even more strongly in 2023 than expected. However, things are likely to go less well in 2024. "Against the backdrop of the significant drop in energy prices on the European wholesale markets in recent weeks, RWE currently expects a lower result for 2024," the DAX-listed company surprisingly announced on Friday. It is expected to be at the lower end of the range presented at the Capital Markets Day at the end of November. The Essen-based company's share price came under pressure following the news.

The share recently lost almost 5 percent to 34.79 euros, its lowest level since October. In mid-December, the share price was still above 42 euros.

In November, RWE CEO Markus Krebber announced his intention to increase the adjusted operating result by an average of 14 percent annually from 2021 to the end of the decade. The aim is to achieve adjusted earnings before interest, taxes, depreciation and amortization of more than EUR 9 billion by 2030. According to the information provided at the time, the target corridor for the adjusted operating result in 2024 is 5.2 to 5.8 billion euros. Since the beginning of the year, only the core business has been relevant for this key figure; the coal and nuclear power businesses have been managed as a non-operating unit since 2024.

In the past twelve months, however, high electricity prices have provided a tailwind. "We expect to close the 2023 financial year significantly up on the previous year," said CFO Michael Müller according to the press release. "Higher income from international electricity generation and our strong trading business were the main reasons for this. Another key driver of earnings growth is the increase in capacity in the renewable energy sector."

In the core business, which includes electricity generation from wind and solar plants, run-of-river, pumped storage, biomass and gas-fired power plants as well as energy trading, an adjusted operating profit of almost 7.7 billion euros is likely to have been generated in 2023, the company added. Based on the new balance sheet structure, Krebber had only forecast EUR 6.4 to 7.0 billion in November.

Consolidated earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) adjusted for one-off effects are expected to have risen by around a third to just under 8.4 billion euros in 2023, according to the current figures. This is also slightly more than the experts surveyed by the Bloomberg news agency had expected on average. RWE is forecasting adjusted net income of EUR 4.5 billion for 2023 - compared to EUR 3.2 billion in the previous year.

The dividend target for the 2023 financial year remains unchanged at EUR 1.00 per share, the company added. The full results are to be published on March 14./mis/tav/men