STUTTGART, Germany, March 27 Reuters German regional utility EnBW expects core earnings to fall by up to 28 this year on lower selling prices for the power it generates.

The company said on Wednesday adjusted earnings before interest, tax, depreciation and amortisation EBITDA are expected to be between 4.6 billion and 5.2 billion euros 5.05.6 billion, down from 6.4 billion in 2023.

The outlook is broadly in line with other European rivals that have forecast falling profits as wholesale power prices have normalised after disruption linked to the Ukraine war led to extreme price swings.

The very good result in Thermal Generation and Trading in 2023 cannot simply be projected into the future, Chief Financial Officer Thomas Kusterer said in a statement.

EnBW, which is mainly owned by the German state of Baden Wuerttemberg and local municipalities, said it would propose a dividend of 1.50 euros per share for 2023, a substantial increase from the 1.10 euros it paid for the prior year.

New CEO Georg Stamatelopoulos, who took over earlier this month in a surprise leadership change, said strong results for 2023 meant EnBW could increase its planned investments in the years ahead.

Like its peers, EnBW plans significant investments to expand in renewables and energy infrastructure. By 2030, the group targets gross investments of 40 billion euros, with Germany accounting for 90.

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Reporting by Christoph Steitz; editing by Barbara Lewis

Source Reuters