RWE, a leading energy giant based in Essen, Germany, experienced a notable decrease in profits last year. The company's operational earnings before taxes, interest, and depreciation dropped from 7.7 billion euros in 2022 to 5.7 billion euros in 2023. Despite meeting their forecasted range, RWE has decided to significantly cut planned investments over the coming years.
Between 2025 and 2030, RWE aims to invest only 35 billion euros, a reduction of 10 billion euros from previous plans. This decision stems from regulatory uncertainties, supply chain constraints, geopolitical risks, and rising interest rates. RWE's response to these challenges is to adjust their strategy accordingly.
In 2023, the company allocated 10 billion euros towards solar panels, wind farms, battery storage, and electrolyzers. These efforts led to the commissioning of new facilities with a combined capacity of two gigawatts, achieving a record high of 50 terawatt-hours in renewable energy production globally. Meanwhile, Germany produced 256 terawatt-hours of renewable energy in 2024.
RWE's net income also fell to 2.3 billion euros, aligning with expectations. Nevertheless, they plan to increase dividends from one euro to 1.10 euros per share and aim for 1.20 euros next year. Looking ahead, RWE anticipates further profit declines, projecting earnings between 4.55 billion and 5.15 billion euros for the current year. This cautious approach highlights the company's adaptability in navigating the evolving energy landscape.
