During the next five years, the company intends to invest a total of up to €25 billion “political framework conditions allowing,” and will become Germany’s largest single private investor.
Despite investing €4.7 billion in 2006, a 14% increase on 2005, with additional funds primarily deployed in the construction of new power plants and the expansion and renewal of grids, in 2007, the group intends to raise capital expenditure on property, plant and equipment in the energy business to a much higher level than in 2006. RWE plans the strongest growth in investment in the German power plant business. Another priority for the company is expanding its gas business with pipeline projects, new exploration and LNG projects taking centre stage.
In its continental European network and sales businesses, some 80% of spending on property, plant and equipment has been earmarked for further modernisation or expansion of electricity grids and gas networks, the company says.
In the UK capital expenditure on property, plant and equipment for 2007 is expected to be in the order of Euro 4 billion.
The company made a recurrent net income of €2.5 billion, up 9% while the operating result increased by 14%.
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