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German energy giant RWE on Tuesday said it was confident of hitting the upper targets of its 2017 outlook after a huge nuclear tax refund boosted its nine-month performance.
The Essen-based group recorded a net profit of 2.2 billion euros ($2.5 billion) between January and September, compared with just 11 million euros over the same period last year.
The spike is partly down to a 1.7-billion-euro refund from the German government after the country's highest court ruled in June that a nuclear fuel tax imposed since 2011 was illegal.
Without the one-off boost, adjusted net profit rose to 876 million euros, still nearly four times higher than last year's adjusted figure.
"We are very satisfied with this year's business performance so far," RWE's chief financial officer Markus Krebber said in a statement, highlighting a particularly sound performance in Europe.
While coal-fired power stations "remain under pressure" on the continent, gas-fired power plants "exceeded expectations," RWE said.
Adjusted operating, or underlying, profits grew more than nine percent to 4.1 billion euros over the first nine months, while revenues slipped by 2.5 percent to 32.4 billion euros -- beating analyst expectations.
RWE said the nuclear rebate windfall helped lower its net debt from 22.7 billion euros in 2016 to 19.5 billion euros by the end of September.
Looking ahead, the group reaffirmed that it expects to reach "the upper end" of its 2017 forecasts.
It is pencilling in adjusted operating profits of 5.4 to 5.7 billion euros and adjusted net profits of 1.0 to 1.3 billion euros.
- Coal in crosshairs -
Like its main German rival EON, RWE has grappled with low wholesale electricity prices in recent years and competition from subsidised renewables as part of Berlin's "energy transition" away from fossil fuels.
RWE has also had to make tough choices in the wake of the German government's decision to move away from nuclear power following the 2011 Fukushima disaster.
The group has responded by spinning off its renewables and power grid businesses into a new subsidiary, Innogy, while keeping its coal, gas and nuclear plants within the original company structure.
As Germany faces growing calls to reduce its reliance on coal in the battle against climate change, RWE's Krebber warned against a quick and "politically mandated exit from coal".
Such a move could disrupt energy supplies and harm the economy, he told reporters.
The warning comes as Germany's Green Party, locked in coalition talks with the conservatives and the liberal Free Democrats, is pushing for the closure of 20 coal-fired plants by 2020.
Its would-be coalition partners have offered to close 10 plants.
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