LONDON/ESSEN (dpa-AFX) - The energy group RWE is setting itself higher targets for the current decade. In the years 2024 to 2030, 55 billion euros net are to be invested worldwide and the green portfolio is to be expanded to more than 65 gigawatts (GW), as the Essen-based company announced on Tuesday at its Capital Markets Day in London. The investments are expected to boost the operating result considerably: by the end of the decade, it should be over 9 billion euros. And the shareholders should also get their share of the cake. The share price rose significantly following the news.

As the Group also announced, the dividend is to increase by 5 to 10 percent annually. An increase of 10 cents is already planned for the coming year, from the currently planned EUR 1.00 per share for the current financial year. The distribution for 2023 has long been envisaged by management as the lower limit for the coming years.

Shortly before midday, the share price rose by more than 3.5 percent on the stock exchange, taking aim at the interim high of around EUR 40 reached at the end of August. The share was last quoted at 39.79 euros. After some ups and downs, the share has reduced its discount since the beginning of the year to 5 percent.

Based on the earnings level of 2021, RWE CEO Markus Krebber expects an average annual increase in adjusted earnings before interest, taxes, depreciation and amortization (ber EBITDA) of 14 percent. By 2030, the operating profit is expected to reach more than 9 billion euros. This is significantly more than analysts had previously predicted. By way of comparison, RWE expects its core business to generate between 6.4 and 7 billion euros in the current year, which will be the only relevant key figure from 2024 onwards, excluding the coal business. Next year, however, there will be a decline for the time being:

Management expects an operating result of between 5.2 and 5.8 billion euros in 2024. Adjusted net income is expected to be between 1.9 and 2.4 billion euros, which is also a decline compared to the 2.8 to 3.3 billion euros expected for 2023. By the end of the decade, adjusted net profit is expected to reach EUR 3 billion.

Even before the event, analysts had expected that the DAX-listed company would not be able to maintain the level from 2023 in the coming years, but would only reach this level again in day-to-day business in the medium term. The Essen-based company is currently benefiting from the scarcity of sustainably produced electricity and fluctuations on the energy markets, among other things. This allows RWE to achieve higher margins from electricity forward sales, for example.

Previously, RWE had targeted an operating profit of around 5 billion euros for 2030 and wanted to expand its capacities to 50 gigawatts. The majority of the new expansion target of 65 GW is to be accounted for by hydrogen and solar projects. Regionally, RWE is planning the majority of its capacities in the USA, followed by Germany and the United Kingdom. At the end of September, the Group had a total capacity of 35 gigawatts and a further 7.8 gigawatts under construction./lew/tav/jha/