|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||26.39 - 27.08|
|52 Week Range||21.92 - 38.50|
|Beta (5Y Monthly)||1.24|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.78 (3.09%)|
|Ex-Dividend Date||May 05, 2019|
|1y Target Est||35.63|
Let's talk about the popular RWE Aktiengesellschaft (ETR:RWE). The company's shares received a lot of attention from a...
The affirmation of E.ON's ratings reflects the group's progress towards completion of the complex asset swap with RWE AG (RWE, Baa3 positive), announced in March 2018. The transaction received European Commission approval in September 2019, after which RWE transferred its 76.8% stake in Innogy (Baa2 stable) to E.ON in return for E.ON's renewable and certain other assets. Simultaneously, E.ON issued shares giving RWE a 16.7% stake in the company (subsequently reduced to 15%).
(Bloomberg) -- The outlook for Europe’s utilities and power generators is worsening as the coronavirus curbs energy demand and prices plunge.Utilities from Centrica Plc to EON SE are being hit on several fronts from lower consumption to customers not paying their bills, which may lead to earning downgrades. Analysts have also started to cut power price forecasts, indicating bleaker prospects for producers including Electricite de France SA and RWE AG.“European utilities face consensus earnings downgrades amid lower demand and prices for energy and environmental services as disruptions from the Covid-19 pandemic progress,” said Elchin Mammadov, analyst at Bloomberg Intelligence. He picked out Centrica and EON as being particularly at risk.Many of the companies were in a bind even before the virus hit. A glut in natural gas has driven prices down to their lowest in a decade, sending power down too. EDF, Europe’s biggest nuclear operator, said on Monday its profit forecast and nuclear output target could be revised down this year.While Centrica declined to comment, EON on Wednesday said the pandemic would squeeze its profitability this year, adding it was too early to gauge the size of the impact. The company expects lockdowns in the countries in which it operates will continue to curb electricity demand and hamper sales as people stay away from workplaces. It also expects the completion of infrastructure projects such as those to build electric car charging apparatus won’t be completed on time.“Industrial and commercial customers are consuming noticeably less energy,” Chief Executive Officer Johannes Teyssen said on an earnings call.Sanford C Bernstein & Co. said earnings at Centrica, RWE, Uniper SE, Naturgy Energy Group SA and Engie SA could be 7% to 21% lower in their base case. That could increase to 20% to 50% in a scenario based on “very low power prices.”The threat of a drop in profits from lower energy prices and a potential global recession could potentially have an impact beyond first half earnings. The 29-member STOXX Europe 600 Utilities Index has dropped 22% since the start of February, compared with a 26% drop in the main STOXX 600 Index.Plunging PowerAnalysts at Joh Berenberg Gossler & Co. cut its 2020 European price forecast by 11%, in part due to an expected 5% drop in industrial power demand from Covid-19. Italy, Spain, Germany, France and the U.K. have all experienced or are expecting a slide in consumption as offices and schools shut and people stay at home. If more factories shut too, the impact will be even worse.RWE said that so far it is very difficult to forecast how a prolonged slump in demand would impact operations at its plants, which range from nuclear to coal, natural gas and wind. Most of its output is still from fossil fuels, which is behind renewables in priority for supplying the grid.The company is “doing all we can to maintain power production in our plants and thus contribute to security of supply,” RWE said. “We expect an impact on electricity demand given the current economic development and shut down of industrial activity. However, this should be temporary and bounce back once we have come through the crisis.”If the drops in demand continue, or are sustained or increased, weekday power demand would most likely fall to Sunday levels –- a reduction of as much as 26%, depending on the country, according to BloombergNEF. This could translate into a big drop in power prices too.“We expect power demand to decline by 5%-7% this year on 2019 and power prices to be down 20% in 2021 from our previous assumptions,” said S&P Global Ratings credit analyst Pierre Georges. This will affect earnings on generation and supply activities, he said.RBC Europe Ltd. is keeping an eye on its power-price forecasts but haven’t made any adjustment yet because most generators have hedged their positions for this year. If lockdown measures continue after the summer the impact could be long term, the company said.Benchmark year-ahead power in Germany has dropped 14% since the start of last month to the lowest in almost two years and a long-term decline will impact earnings. RBC estimated that price swings impact about 20% of Ebitda in Europe’s utility sector.While industries including transportation takes an immediate hit as people stop traveling, it takes government measures shutting down schools and offices to impact power and natural gas consumption. The coming weeks will be key in determining whether the impacts of the virus are short-term or longer-term, according to one veteran Swiss trader.Demand “could potentially dissipate in a few weeks or months. What we have yet to see is whether these disruptions are large enough to push the world into a more meaningful recession,” said Domenico De Luca, Head of trading and sales at Axpo Holding AG. “If so, energy demand could remain subdued.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of RWE AG and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's assessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers, which was followed by a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
Moody's Investors Service (Moody's) has today affirmed the Baa3 issuer rating of RWE AG (RWE), and the Ba2 rating of its subordinated hybrid capital securities (the hybrids). Concurrently, Moody's has also affirmed the (P)Baa3 senior unsecured EMTN programme, the (P)P-3 other short term rating and the Prime-3 commercial paper rating. The change of outlook to positive reflects Moody's view that RWE's business profile is improving with its ongoing transformation from a pure conventional power generator to a utility with an increasing exposure to renewable assets.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of E.ON SE and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
European stocks closed higher in a choppy session that underscored just how fragile confidence is after the coronavirus-fear selling of the last week.
In the past year European power company stocks have triggered a buying frenzy more akin to headline-grabbing U.S. tech giants following the continent's "green deal". "ESG is intensifying the pace at which active and passive funds move into 'winner' sectors, including utilities," said Antonio Amendola, fund manager at AcomeA in Milan.
Is RWE Aktiengesellschaft (ETR:RWE) a good dividend stock? How can we tell? Dividend paying companies with growing...
The German cabinet on Wednesday backed plans to exit coal as an energy source by 2038 at the latest as part of Berlin's efforts on climate protection, a government spokesman said. A draft law approved by the cabinet to phase out hard coal-fired power stations envisages maximum phase-out compensation of 165,000 euros ($183,051) per megawatt in 2020, falling to 155,000 euros in 2021 and 2022.
German government draft plans to phase out hard coal-fired power stations envisage maximum phase-out compensation of 165,000 euros ($183,051) per megawatt between 2020 and 2022, three sources familiar with the matter said on Tuesday. The draft law, part of the government's efforts on climate protection, foresees an annual 25% decrease in the maximum compensation in the following years, with no further compensation after 2026, the sources added. The cabinet will discuss the draft law on Wednesday and the lower house of parliament will hold a vote on the law later this year.
RWE, Germany's biggest power producer, will cut about 6,000 jobs, or nearly a third of its current workforce, by 2030 as the country moves to phase out brown coal as an energy source, the company said on Thursday. It also accelerates RWE's transformation into a pure renewables group, which - along with its low valuation - could turn it into a takeover target, Goldman Sachs said last week. RWE said it would receive 2.6 billion euros ($2.9 billion) in compensation from the government over 15 years to soften the blow to its business.
European shares ended higher on Thursday after the signing of a long anticipated Phase 1 U.S.-China trade deal lifted some level of near-term uncertainty, while disappointing earnings dragged down London shares. "Investors are maybe not selling on the fact but just pausing for thought that the deal has been signed which is also a source of relief for most people," said Russ Mould, investment director at broker AJ Bell. The pan-European STOXX 600 index closed up 0.2%, with London's main index lagging its continental peers.
Rolf Schmitz has been the CEO of RWE Aktiengesellschaft (ETR:RWE) since 2016. First, this article will compare CEO...
Germany will allow operators of coal power stations to keep their existing carbon emissions certificates after the units have been shut down, part of a compromise designed to reduce the cost to generators of a climate change package. Under plans seen by Reuters, the government will reduce by an equivalent amount the number of new certificates issued under a trading scheme that is designed to ensure that emitters of the greenhouse gas carbon dioxide pay for the environmental impact of their activities. The compromise means the government will earn less from the emissions trading scheme.
A law to compensate utilities for fading out coal energy generation in Germany will be subject to a formal vote as soon as an agreement among ministers has been reached, an environment ministry spokesman told a news conference on Tuesday. A spokeswoman for Germany's Economy Ministry, who also spoke at the event in Berlin, added that the government was working on the matter "with high priority". In an effort to meet its climate protection targets under international and European rules, Germany has decided to stop using coal for energy generation by 2038, a move that could prompt billions of euros in compensation payments for utilities.
The German government will not force hard coal power plants to close over the next seven years, a draft law expected to be approved by the cabinet next week showed on Tuesday. The plan not to force hard coal plant closures before 2026 risks making Germany's coal exit more expensive as the government would have to give operators generous financial incentives to shut down facilities voluntarily. The new plan is a reversal for the government, which had stipulated in a previous blueprint that utilities would be forced to deactivate hard coal power plants by 2026 if not enough closures happen voluntarily.