RWE raises 2019 outlook again on British capacity market payments
Reuters
Published Nov 14, 2019 06:55
RWE raises 2019 outlook again on British capacity market payments
FRANKFURT (Reuters) - RWE AG (DE:RWEG), Germany's biggest electricity producer, on Thursday raised its outlook for the second time in three months, boosted by an expected windfall after Britain's scheme to reward back-up power capacity was revived.
RWE said it stands to receive 230 million euros (£198 million) in suspended payments for 2018 and 2019 after Brussels last month gave the go-ahead for the mechanism, which pays power generators for keeping plants on stand-by in case of outages.
This also stoked smaller peer Uniper (DE:UN01) to raise its full-year outlook earlier this week.
The German company expects adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 1.8 billion-2.1 billion euros, while its adjusted net income is seen at 0.9 billion-1.2 billion.
The group, which recently completed a major asset swap with peer E.ON (DE:EONGn) that turned it into Europe's No.3 renewables group, previously expected an adjusted EBITDA of 1.4 billion-1.7 billion euros and adjusted net income of 0.5 billion-0.8 billion euros.
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Written By: Reuters
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