RWE profits rise fails to impress

GERMAN energy giant RWE - owner of Thames Water and Innogy - posted a 9% rise in core profits today but markets were disappointed that acquisitions had failed to lift its performance.

The profit of e818m (£520m) after tax from a turnover of e27.7bn was in line with forecasts, and the company said it was confident of a further 20% growth for the rest of the year. However, its interests outside the energy sector performed less well than expected.

The figures included for the first time Innogy Holdings and Transgas of the Czech Republic. Innogy is the UK's biggest energy supplier.

The shares opened in Frankfurt down 96 cents at e36.10. ING BHF-Bank said: 'The results are pretty much what we expected although some analysts thought they were a little down.'

Gas, water, electricity and environmental concerns all performed well in the first six months of this year. An RWE spokesman said: 'We remain optimistic because the outlook both for energy concerns and water are both good.'

First-half earnings before interest, taxes, depreciation, and amortisation fell 4.3% to e3.33bn from e3.48bn a year earlier while net profit rose 11% to e818m from e736m.

Overall group operating profit was up 9% to e2.17bn. RWE said group sales rose to e27.68bn in the first six months, up 3.5% from the pro-forma e26.74bn in the same period a year earlier.