Saturday 28 May 2016

RWE report Q1 2016

RWE, Q1, 2016, front page

My fourth and final electricity company have also arrived with their Q1 report for 2016. As always I no longer remember or even care how the share price moved during the release of the report. I never follow the analysts forecasts before the release of the report so why should I care how they afterwards adjust it. Either way the development has been awful since I stepped in as is very often the case.

To read the report in full please go here, to see the previous summary then click on RWE annual report 2015 and to see the previous analysis of RWE 2016.

In the financial analysis we see that also RWE have been hit by lowered sales and we also see that they managed to tighten up their costs which in this case worked out very well and we ended up with a similar result to what was reported back in Q1 2015. Due to sale of some assets the first quarter of 2015 became much better in the end with almost 2.2 billion € in earnings but after this quarter every other one were losing money that in the end the full year of 2015 turned out to be a very poor one with -0.3 € per share so... a loss of -3.8 € per share were acknowledged during quarters two to four. Shameful. If one exclude the sale of assets then the quarter was well in line with quarter one 2015 and even a bit better.

RWE, Q1, 2016, financial statement

Conclusion: RWE is off to a good start as they were in 2015 before the ship sunk. I therefore do not trust the figures and yet I hope that we will not get a replay from last year... so fingers crossed! I will remain as a grumpy shareholder in RWE.

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