RWE
Note: This is a daily stock update and the information stands true as of 13/11/24, 09:00 CET.
Company Update:
Expert Opinion:
RWE is the worst performer in the power utility sector. Its decision to actually increase its capex program at a time where most utilities are more cautious was a concern. Their decision to maintain the 2030 capex program while distributing €1.5bn through share buyback will further constrain the balance sheet. While we expect a positive reaction on the better numbers and the short term benefit of the SBB program, we are concerned about the leverage of the business and fear there could be a need for a potential capital increase at some point in the future.
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Company Update:
Adjusted EBITDA came in at €3,976m, a 3% beat to consensus €3,870m while adjusted Net Income is a 5% beat at €1,641m (cons at €1,557m).
RWE confirmed its FY2024 guidance range Adjusted EBITDA in the range of €5.2-5.8bn and an Adjusted Net Income of €1.9-2.4bn but expects to reach the middle of the range v.s. the low end previously.
The group will launch a SBB program of €1.5bn.
Expert Opinion:
RWE is the worst performer in the power utility sector. Its decision to actually increase its capex program at a time where most utilities are more cautious was a concern. Their decision to maintain the 2030 capex program while distributing €1.5bn through share buyback will further constrain the balance sheet. While we expect a positive reaction on the better numbers and the short term benefit of the SBB program, we are concerned about the leverage of the business and fear there could be a need for a potential capital increase at some point in the future.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
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Alphavalue Morning Market Tip
Solid start of 2025 with signs of recovery in key markets.