RWE says Innogy deal on track after first-half core profit in line

  • RWE and E.ON in March announced the landmark deal, which will see them divide Innogy's assets between them and turn RWE into Europe's third-largest renewable energy provider behind Spain's Iberdrola and Italy's Enel.
  • Overall, assets worth nearly 40 billion euros ($45.6 billion) will change hands as part of the deal, which is expected to close next year, RWE said.
  • Shares of RWE were up almost 3 percent during mid-morning deals on Tuesday.

RWE on Tuesday said a deal to break up its networks and renewables unit Innogy with rival E.ON was on track after posting first-half core profit that was in line with expectations.

RWE and E.ON in March announced the landmark deal, which will see them divide Innogy's assets between them and turn RWE into Europe's third-largest renewable energy provider behind Spain's Iberdrola and Italy's Enel.

Overall, assets worth nearly 40 billion euros ($45.6 billion) will change hands as part of the deal, which is expected to close next year, RWE said.

"We will transform RWE significantly (and) we will become a pretty dominant renewable player on a global scale," Markus Krebber, chief financial officer of RWE, told CNBC's Karen Tso on Wednesday.

"We are much more agile than we have been years ago in the fully-regulated world, so we look forward to the new future and we think we have the right people on board," he added.

Trade war

First-half adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), excluding Innogy's profit contribution, came in at 1.1 billion euros, down from 1.4 billion in the year earlier period but meeting the average estimate in a Reuters poll.

At 870 million and 683 million euros, respectively, first-half adjusted earnings before interest and tax (EBIT) and adjusted net income came in higher than expected by analysts, who had forecast 825 million and 625 million.

When asked whether he was concerned about trade spats, including an escalating trade war between the U.S. and China, Krebber replied: "We don't expect that global commodity prices will be driven by this dispute."

Shares of RWE were up almost 3 percent during mid-morning deals on Tuesday.