Income up at RWE

In the first half of 2006, German energy giant RWE saw net income rise 16% and operating profits grow by 19%.

Earnings per share increased 16% to E2.95, but RWE was hesitant to assign a forecast for the full year.

Due to seasonal and other effects, the trend in earnings cannot, however, be extrapolated for the year as a whole. In addition, the full scope of risk facing the group from German grid regulation cannot be quantified as yet, the company said in a statement.

Nevertheless, RWE expects continued earnings growth. This year, RWE plans a significant increase in capital expenditure on property, plant and equipment, it says.

EBITDA increased 14% to E5.1 billion. The operating result improved by 19% to E4.1 billion. RWE Power increased its operating result by 29% to E1.7 billion, and RWE Energy by 19% to E1.7 billion. The operating result of the UK subsidiary RWE npower also improved significantly, up 30% to E274 million, the firm’s statement read.