Energy giant RWE feels the transition from fossil energy to more sustainable alternatives in its results. The German group takes into account a decrease in operating profit, partly due to political and legal pressure to generate less energy with fossil-fueled power plants.
RWE expects an adjusted operating result (EBITDA) for 2019 between 1.2 billion and 1.5 billion euros. Last year, operating profit fell to 1.5 billion euros, compared to 2.1 billion in the previous year. The adjusted net profit will amount to between 300 million and 600 million euros, compared to 591 million euros last year.
The company points out, among other things, the legal struggle of environmental activists who oppose the extraction of a brown coal field in a nature reserve near Cologne. Due to a court decision, RWE cannot start operating the mine until at least 2020. In addition, the German government is working on plans to close polluting coal plants.
To cope with these changes, RWE is trying to transform itself into a major supplier of sustainable energy. According to financial chief Markus Krebber, it will be “not an easy job” to keep the profit up to standard.
About the author: Christy Olsen
Christy Olsen, a young author who followed in her father's footsteps and took up journalism at school. She often introduces a lot of subjective things into his texts, always tries to state the essence and give a proper assessment.