Friday 27 April 2018

RWE annual report 2017

Front page of RWE annual 2017 report

To read the report in full please go here, to see the previous summary then click on RWE annual report 2016 and to see the previous analysis of RWE 2017.

As can be seen in the income statement below for RWE the year of 2017 turned out to be a pretty good one. The revenue was down by around 1 billion EUR but the earnings had turned from a massive loss of 5.7 billion last year to 1.9 billion in earnings this year. What was a bit worrying in the report was that they predict continued revenue and earnings decreases during the coming years and that the "big" turn will not be until 2020. The interesting thing is that this was based on status quo and did not consider the massive deal that they have now done with E.On so it will be highly interesting to see how this deal will influence future revenues as well as earnings.

Income statement of RWE 2017

Conclusion: The German energy market is going thru a massive change, which was not mentioned in this report, and as a shareholder I look forward to owning two companies that are highly specialised in their independent fields. So I will remain as a shareholder for now and will keep an eye on that the oil giants have started to step into the field of more green energy production.

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