RWE Confirms FY14 Earnings Outlook

German utility RWE AG

reported a 63% gain in its net profit for the first nine months of the year and backed its earnings outlook for fiscal 2014. RWE's net profit for the period climbed to 994 million euros ($1.24 billion), versus a year-ago profit of 609 million euros. Its recurrent after-tax profit slipped 60% to 763 million euros versus 1.92 billion euros, versus analysts' estimates of 776 million euros. RWE's operating profit dropped 31% to 2.9 billion euros versus 4.2 billion euros, versus estimates of 2.87 billion euros. EBITDA dropped 22% to 4.7 billion euros in the same period. Group external revenue slipped 8.8% to 35.29 billion euros, compared to 38.70 billion euros. Revenue from gas business fell 23%, while electricity revenue dropped 3%. Electricity production dipped 5.9% to 151.2 billion kilowatt hours. For fiscal 2014, RWE continues to project operating income of 3.9 billion euros to 4.3 billion euros and recurrent net income of 1.2 billion euros to 1.4 billion euros. RWE shares slipped 3.92% to close at $34.15 yesterday.