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RWE reduces investment program by $10.9 billion as uncertainty increases

RWE reduces investment program by $10.9 billion as uncertainty increases

RWE, Germany’s largest utility, announced on Thursday that it would reduce investments by over a fifth through the end of this decade. The company cited uncertainty about renewable returns, as well as geopolitical risk and supply chain constraints.

The company said that it would reduce its investments from 10 billion euros to 35 billion euros in 2030. It will also increase the return requirements on new projects.

We have increased the requirements for future investment due to the higher uncertainty in the investment climate. Due to stricter risk management, and higher expectations of return, we will invest less through 2030 than originally planned," Markus Krebber, CEO said.

RWE, along with its peers, has been facing a more difficult global investment environment in renewable energy projects. Investors have criticized the German utility’s capital allocation for quite some time.

RWE expects to achieve an adjusted core profit (EBITDA), between 4.55 billion and 5.15 billion euro in 2025. Adjusted net income will be between 1.3 billion to 1.8 billion euro.

In 2024, the adjusted EBITDA dropped by over a quarter and the adjusted net profit fell by 43%. $1 = 0.9180 Euros (Editing by Ludwig Burger)

(source: Reuters)