RWE chief financial officer Markus Krebber says the ‘new RWE’ is in sight, and once its deal with Eon is completed the company will be the world’s second-largest offshore wind operator, occupying a top five position among renewable energy producers.
Describing the company’s first quarter results, Dr Krebber said he was “satisfied” with RWE’s performance in Q1 and is on schedule implementing its transaction with Eon. “Preparation for the integration of the renewables business is making good progress,” he said.
In February 2019, the European Commission approved the acquisition by RWE of Eon’s renewable and nuclear electricity generation assets. The complex asset swap will see RWE focus on upstream electricity generation – including offshore wind and other renewables – and wholesale markets, whereas Eon will focus on the distribution and retail of electricity and gas.
In April 2019, RWE concluded a €5.0Bn (US$5.6Bn) credit agreement in preparation for the integration of Eon and innogy’s renewables activities. The line of credit was provided by 27 international banks and the credit line was significantly oversubscribed.
RWE got off to a good start to the 2019 financial year. From January to March, ‘RWE stand-alone’ achieved adjusted earnings before interest, taxes, depreciation and amortisation) of €510M (US$5.71). This compares to €299M (US$335M) in the same period last year. Adjusted net income increased as well, reaching €273M (US$306M) (Q1 2018: €78M).
For 2019, RWE expects to achieve adjusted EBITDA of between €1.2Bn (US$1.3Bn) and €1.5Bn (US$1.7Bn) and adjusted net income of between €300M (US$336M) and €600M (US$672M).