RWE to delay investments as Trump win dims US offshore wind

German energy major RWE AG (ETR:RWE) has unveiled a plan to launch a EUR-1.5-billion (USD 1.59bn) share repurchase programme at a time when Donald Trump's re-election has worsened the prospects for the US offshore wind market and the hydrogen market in Europe is developing more slowly than expected.

The Essen-based group has cautioned that the risks for offshore wind projects in the US have increased after the presidential elections and warned that this "affects RWE's offshore wind project off the east coast of the US, which could be delayed due to outstanding permits."

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In the US, RWE has a 6-GW offshore wind seabed portfolio including Community Offshore Wind off the coasts of New York and New Jersey and the 1.6-GW Canopy Offshore Wind project off the coast of Northern California.

In addition, the ramp-up of the hydrogen economy in Europe will slow down compared to the original roadmap which will lead to a delay in RWE's planned investments, CFO Michael Mueller noted in his speech.

"In light of these risks in our market environment, we have recalibrated our capital allocation. Our annual investments over the next two years will be lower than this year, reflecting expected delays in the US offshore wind business and slower progress in the hydrogen ramp-up. In 2025 and 2026, we will invest around EUR 7 billion net per year," Mueller said further. In the first nine months of 2024 alone, RWE's net investments amounted to EUR 6.9 billion.

In this context, RWE will repurchase shares from the stock market worth up to EUR 1.5 billion. The share buybacks will begin in the fourth quarter of 2024 and extend over up to 18 months.

(EUR 1.0 = USD 1.062)