Germany's energy giant RWE has launched a $1.6 billion (€1.5 billion) share buyback program that sent its shares up over 3% in pre-market trading. CEO Markus Krebber cited delays in the U.S. offshore wind market and the European hydrogen sector as reasons for reallocating funds, emphasizing RWE's commitment to enhancing shareholder value. Share buybacks can reduce shares in circulation, thereby increasing the value of individual shares and responding to investor calls for value-boosting initiatives.

The announcement was accompanied by RWE's nine-month financial results, showing a 30% drop in adjusted EBITDA to $4.2 billion (€4 billion), with energy trading results sharply down from $1.4 billion (€1.3 billion) to $484 million (€465 million) due to shrinking margins. In contrast, the Offshore Wind division posted growth thanks to favorable wind conditions. Despite the challenges, RWE now expects its full-year adjusted EBITDA to reach the mid-point of its projected $5.5-6.1 billion (€5.2-5.8 billion) range.

In 2024, the group invested $7.3 billion (€6.9 billion) to expand its portfolio, focusing on offshore wind, solar, and onshore wind projects in Europe and the U.S. Despite the setbacks in hydrogen and offshore wind development, Krebber stated RWE's commitment to driving the energy transition through continued global green energy investments.

Source: marketscreener.com