RWE H1 Adj. Net Profit Up, Lifts FY21 View; To Cut 3,000 Jobs By 2022 End Due To Phaseout Of Coal

German utility RWE AG (RWEOY.PK) reported Thursday that its first-half adjusted net income was 870 million euros from last year's 816 million euros.

Adjusted EBIT was 1.04 billion euros, lower than last year's 1.11 billion euros. Adjusted earnings before interest, taxes, depreciation and amortisation or EBITDA was 1.75 billion euros, slightly lower than prior year's 1.83 billion euros.

Adjusted EBITDA Core business declined to 1.21 billion euros from 1.52 billion euros last year.

Looking ahead, the company raised fiscal 2021 outlook significantly on account of exceptionally strong performance by Supply & Trading.

For fiscal 2021, RWE now expects to achieve adjusted net income to be between 1.05 billion euros and 1.4 billion euros, an increase of 300 million euros.

The range for adjusted EBIT was raised to 1.5 billion euros to 1.9 billion euros.

Adjusted EBITDA is now expected between 3.0 billion euros and 3.4 billion euros at Group level, which is 350 million higher than previous forecast. In the core business, adjusted EBITDA is expected to be between 2.15 billion euros and 2.55 billion euros.

Further, for the current financial year, the company still aims to increase the dividend to 0.90 euros per share.

Regarding its rigorous phaseout of coal, the company said its last two hard coal-fired power stations in Germany have been decommissioned. For lignite, the first wave of decommissioning is in progress. At the end of the year, three more units in the Rhenish region will be taken off the grid.

As a consequence of the phaseout of coal, RWE said it will have to cut over 3,000 jobs by the end of 2022 alone. This will be done in a socially responsible way and in close consultation with the social partners.

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