German utility RWE has reported improving its operating result by 14% and recurrent net income by 9% in 2006. The firm said that the divestment of Thames Water aided its figures, while further significant income growth is predicted for 2007.
RWE increased its operating result by 14% to E6.1 billion. This was driven by the group’s positive operating performance, particularly in the area of power generation. However, earnings were also impacted negatively by German grid regulation and unscheduled power plant outages. EBITDA increased by 11% to E7.9 billion.
Recurrent net income, i.e. net income adjusted for one-off effects, increased by 9% to E2.5 billion. Including all one-off effects, net income rose by 72% to E3.9 billion. Net income including considerations was positively impacted by the sale of Thames Water and changes to German tax laws.
The supervisory and executive boards of RWE will propose to the annual general meeting that a dividend of E3.50 per share be paid for fiscal 2006. This is double the dividend paid the previous year.
Meanwhile, RWE has set new medium-term goals for organic growth. The company intends to increase the operating result by an average of 5% per year over the next few years. For fiscal 2007 and 2008, RWE plans an average rise of 10% per year in recurrent net income.