Tuesday 5 April 2016

RWE annual report 2015

RWE, annual, 2015, front page

This report from RWE was not good. I did not keep track of the market response towards it but the general performance for RWE in the last year have been awful and this full year report with the impairment and depreciation costs that were slammed into the final quarter... well... what can be said about it... It is sad to observe as a shareholder.

To read the report in full please go here, to see the previous summary then click on RWE report Q3 2015 and to see the previous analysis of RWE 2015 then please click on that link but a new one will arrive shortly.

In the financial statement below we can see the reason for why the sun is no longer shining. The revenue is completely flat to the year before and if one takes a little longer look, so over five years, then the revenue is even down. The cost of materials have increased a little but is still not at a level that is chocking in any way. The big problem is the depreciation and impairment costs that are simply too high in comparison to the earnings that are being created in the company. This means that we went from 0.32 EPS in Q3 to -0.28 EPS for the full year. I love those fourth quarter adjustments. Love them!

RWE, 2015, financial statement

Conclusion: RWE and generally the utility companies are having a tough, tough time. Competitors, Governments, Regulations, Environment, Prices well... you name it and it will be a problem for these companies. By the look of it I stepped in too early in RWE but since we cannot turn back time we can only go forward and I will remain as a grumpy shareholder in RWE.

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