RWE (RWEG.DE), the leading utility company in Germany, said that it would increase its investment in green energy technology to 55 billion euros ($60 billion) over the next seven years. This announcement was made in advance of the company’s capital markets day.
The most recent aim for the group’s net cash investment is equivalent to an average annual expenditure of 7.9 billion euros in projects related to hydrogen, flexible generation, batteries, and renewable energy. This is an increase from the average of 6.7 billion euros allocated for 2021–2023.
“Thanks to our significant financial headroom, our attractive project pipeline, and our extensive expertise, we are in an excellent position to continue to accelerate our transformation, even in the current challenging environment,” Chief Executive Officer Markus Krebber stated.
As a result of the announcement, the company’s shares continued their upward trend and were trading 2.2% higher at 09:45 GMT, placing them at the top of Germany’s blue-chip DAX index (.GDAXI).
Compared to the group’s prediction for 2023, which was for 7.1 billion to 7.7 billion euros, the adjusted core earnings (EBITDA) are anticipated to climb to more than 9 billion euros in 2030. This represents an increase of up to 27% over the group’s previous forecast, which the business described earlier this month as conservative.
In addition, the company said it intended to make a dividend payment of 1.10 euros per share in 2024, an increase from the 1.00 euros per share proposal made for 2023. This is a 10% year-on-year increase at the higher end of its aim of achieving 5–10% annual payout growth.
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