RWE ups full year targets

May 29, 2001
Web Posted at 0825 GMT

FRANKFURT, (Reuters) - German utility RWE raised its full-year operating profit forecast on Tuesday after posting nine-month figures which met analysts' expectations.

The group said it expects operating profit in the full-year 2000/2001 to rise by at least 35 percent, bolstered by the recent consolidation of its British subsidiary Thames Water and record earnings in oil and chemicals.

In February, RWE, Germany's second-biggest utility by market capitalisation, predicted operating profit to climb 25 percent in the full year.

By 0703 GMT RWE shares were up 1.97 percent at 43.90 euros.

RWE bought Thames Water last year as part of a drive to expand abroad to offset weakness in its electricity business in Germany following the liberalisation of the power market.

Unlike larger domestic rival E.ON AG, which is focusing solely on energy, RWE is aiming to become a multi-utility, offering water, gas and electricity.

NINE-MONTH NUMBERS

RWE said operating profit in the nine months to March 31 jumped 34 percent to 2.9 billion euros ($2.49 billion), broadly in line with the 2.8 billion forecast by a Reuters poll of nine analysts.

The rise was driven by above-average growth in the oil and chemicals divisions, as well as effects of a cost-cutting programme in its energy business, the group said.

Net profit came in at 1.09 billion euros, up 0.7 percent from a strong year-earlier figure, it said.

Sales increased 32 percent in the nine-month period to 46 billion euros, as its Turner Group, Thames Water and Leighton Holdings acquisitions were consolidated.

Excluding consolidation effects, group sales were still up 13 percent thanks to strong sales contributions from oil and chemicals.