OREANDA-NEWS. In light of the deterioration in the earnings prospects of the conventional electricity generation business, the Executive Board of RWE AG decided in its meeting today to adjust the company's dividend policy. The Supervisory Board endorses the Executive Board's decision to adjust the dividend policy. The Executive and Supervisory Boards are considering proposing to the Annual General Meeting, which will take place on 16 April 2014, a dividend of EUR 1 per common and preferred share. Previous year's dividend was EUR 2. The dividend proposal for the following fiscal years should be in line with a payout ratio of 40% to 50% of recurrent net income, as opposed to the previous range of 50% to 60%.

“We are undoubtedly facing difficult times, and our dividend policy must take this into account,” explained Peter Terium, Chairman of the Executive Board. He added that the funds retained as a result of the reduced payout ratio would be set aside to service debt. The CEO further stated that this was necessary as earnings achieved in conventional electricity generation would drop further. Peter Terium also pointed out that payments in relation to the most recent political intervention, e.g. the German Site Selection Act, would impose substantial burdens in the future.

RWE's CEO announced that the company would intensify its efforts to realise savings. “Everyone in the company - definitely not just the shareholders - will make a contribution to safeguarding our financial power over the long term,” says Terium. Management will be able to provide information on additional cost-cutting measures - including contributions made by employees and management - as well as on capex reductions and the forecast development of earnings after 2013 on 14 November 2013, the day on which the interim report for the first three quarters of 2013 will be published.

RWE maintains the earnings forecast it published in March 2013: the company expects EBITDA of about EUR 9 billion, an operating result of about EUR 5.9 billion and recurrent net income of about EUR 2.4 billion.