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RWE expects profits to fall in 2021 on Texan cold spell

· 03/16/2021 02:00
RWE expects profits to fall in 2021 on Texan cold spell

- RWE RWEG.DE, Europe's third-largest renewables group, expects operating profit to decline in 2021, blaming a cold spell in Texas that caused a temporary shutdown of some of its local wind farms.

Adjusted core earnings (EBITDA) are seen at 2.65 billion to 3.05 billion euros ($3.16-$3.64 billion) this year, down as much as 17% compared with 2020. Adjusted operating profit (EBIT) is seen at 1.15 billion to 1.55 billion euros, down from 1.8 billion last year.

RWE had already warned of a profit hit last month, saying freezing temperatures in Texas put onshore wind farms out of service and forced the company to buy electricity at sky-rocketing prices. nL1N2KO3AW

The company, Germany's largest power producer, still said it intends to raise its dividend for 2021 to 0.90 euros per share from 0.85 euros to be paid for 2020.


($1 = 0.8378 euros)


(Reporting by Christoph Steitz, editing by Emma Thomasson)

((christoph.steitz@thomsonreuters.com; +49 30 220 133 647;))