BERLIN, Jan 28 (Reuters) - RWE, Germany's biggest power producer, expects governments to prioritise long-term resilience and security in energy supply, its CEO said on Wednesday, as a direct
RWE's CEO Predicts New Era for Energy Sector Amid Geopolitical Changes
RWE's Vision for the Future of Energy
BERLIN, Jan 28 (Reuters) - RWE, Germany's biggest power producer, expects governments to prioritise long-term resilience and security in energy supply, its CEO said on Wednesday, as a direct consequence of geopolitical tensions.
Geopolitical Impacts on Energy Supply
"We are certainly entering a new era in energy supply," Markus Krebber told reporters at a Handelsblatt energy summit, saying the economic focus was increasingly shifting to a "a long-term energy supply strategy absent of new dependencies".
Investment Opportunities and Share Buybacks
Germany, Europe's biggest economy, is among Western nations seeking new alliances as trusted relationships, most notably with the United States, have suffered as a result of trade tensions triggered by U.S. President Donald Trump's policies.
Current Share Buyback Plans
At the same time Germany faces some of the highest energy costs globally, hurting its industry and curbing growth as Berlin severs energy ties with former main supplier Russia.
Market Reactions to Share Price Changes
With no major fossil fuel reserves of its own, Germany has sought to diversify its supply, driving up prices.
Krebber also seemed to pour cold water on hopes for more share buybacks by RWE, something activist investor Elliott has called for, saying the group had "outstanding" investment opportunities in new power plants in Germany, offshore wind in Britain and solar and batteries in the U.S..
RWE announced a 1.5 billion euro ($1.8 billion) share buyback in late 2024 which Krebber said runs until May 2026, with the company's share price gaining nearly 50% to more than 50 euros since the programme was announced.
"We have always said that whether or not we do a share buyback depends on the share price and what investment opportunities we have," Krebber said.
"It will come as no surprise to you when I say that a share buyback at 28 euros is, of course, a different matter to a share buyback at 52 euros."
($1 = 0.8356 euros)
(Reporting by Christoph Steitz, editing by Miranda Murray and Alexander Smith)
