Monday 15 June 2015

RWE report Q1 2015

RWE, report, Q1, 2015, front page

I have not owned RWE for very long and yet both a brick of an annual report have dropped on the ground, dividend has been paid out and the Q1 report for 2015 have arrived. So how wass then the start for RWE in 2015?

To read the report in full please go here and to see the previous analysis of RWE 2015 then please click on that link.

They are not happy about the decisions of the German government and how many employees that will be influenced by what the German government is trying to do when they decided to kill nuclear power. In a way it is getting killed softly by the increased energy taxes that are squeezing out the margin for the producers. As with everything in life and a river filled with obstacles the water will find a way around it and continue to flow. People do not remain unemployed when an industry close down. Sure they need to change their life and they might be forced to move somewhere else to get a new job but these things do not have to be bad.

I will only show the key figures as they were presented in the report. All the production was up so this was good news! But the income (continued) in the end was bad with -26% and when I looked at the income statement the cost of sales had increased more than what it should have done. The only thing saving the quarter was them selling off a part... which will mean less revenue and less earnings in the future. They also claimed to have decreased their debt slightly but well... I trust it (a little bit more) when I read it in the next annual report.

RWE, Q1, 2015, key figures

Conclusion: RWE is not doing well. They manage to remain with their head above water but they really need to improve their margins in the future. I will remain as a shareholder since the electricity and energy demand in the world will never stop. Only how it is being produced will change with the times.

No comments: