Low reliance on Russian fuel imports has kept RWE’s business out of the energy crisis caused by Russia’s invasion of Ukraine, and even allowed it to enter the US renewable energy market through a $6.8 billion acquisition to expand.
For this year, the company said so The net investments of 4.4 billion euros made in 2022 are exceeded, while a dividend of 1 euro per share was announced for 2023which corresponds to an increase of 11% compared to the previous year.
“RWE is one of the international drivers of the energy transition. We are now leaders in all of our main regions: in the EU, in Great Britain and in the USA,” said CEO Markus Krebber. “We will continue to strengthen this position through massive investments in our green core business.”
In the current 2023 financial year, RWE expects adjusted earnings before interest and taxes (EBIT) of between €3.6 billion and €4.2 billion, which would correspond to a decrease of one fifth compared to 2022. The market estimates an adjusted EBIT of 3,800 million euros, knowing that the numbers for 2022 were driven by specific factors, as a huge business advantage and high margins at RWE’s gas power plants thanks to rising wholesale prices.
The value is up nearly 3% on the session to trade at $37.29, still a long way from the market’s price target of $51.98, which would mean a potential of 29.5% above prices which the company operates today. Out of the 22 analysts covering the stock today, 19 elect to recommend Buy or Strong Buy, according to the Reuters consensus against three who remain neutral.
The value, which is down more than 5% year-to-date, has seen the potential granted by consensus rise by more than €10 since mid-2022.