RWE Slows Green Investments Due to Trump's Re-election and Investor Pressure

German energy company RWE has faced a lot of pressure from its investors. This pressure came after Donald Trump's re-election in the U. S. The investors wanted RWE to change its plans to invest $55 billion in renewable energy sources. The company was planning to do this by 2030. To deal with this pressure, RWE has now announced a share buyback program. The Essen-based company will buy back as much as €1. 5 billion of its shares over 18 months. This is to boost their lagging share price. The company says that Trump's re-election has increased the risks for offshore wind projects in the U. S. Due to this, RWE will reduce its net investments in 2025-26 to €7 billion, down from €10 billion in 2024. This is part of a new plan to use capital more carefully. RWE’s chief financial officer, Michael Müller, said the investment reduction could delay their plans to invest €55 billion in renewables by 2030. He also mentioned that delays in Europe's green hydrogen plans are another reason they are slowing down their capital expenditure.

The company’s decision can be seen as a worry for climate change campaigners. Trump has previously said he would end offshore wind in the U. S. if elected. This could affect decarbonisation efforts worldwide. However, investors and analysts have praised the company for being more careful with its capital. They have been concerned about RWE's strategy to use its strong cash flow to invest in renewables with uncertain returns. “RWE has finally listened to shareholders and analysts who wanted a more careful use of capital, ” said Benedikt Kormaier from Enkraft Capital. RWE has invested in large offshore wind projects in Britain, Denmark, Germany, and the Netherlands. Last year, they also bought Con Edison Clean Energy Business in the U. S. for nearly $7 billion. RWE reported earnings before interest, taxes, depreciation, and amortisation of €4 billion for the first nine months of this year. This is lower than the €5. 7 billion in the same period last year. Despite this, its earnings expectations for the full year have improved. They also confirmed their dividend target of €1. 10 per share and plan to increase it in the future.

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