Shares of RWE, the German energy company, experienced a decline on Friday due to the company's announcement of anticipated lower earnings in 2024. This projection is primarily attributed to a significant drop in European energy prices.

As of 1531 GMT on Friday, RWE's shares traded down by 7% to EUR34.06.

During its November capital markets day, the German energy company provided a range for its 2024 earnings outlook. RWE now anticipates its earnings in 2024 to be at the lower end of that range.

Previously, RWE had guided for adjusted net income between 1.9 billion and 2.4 billion euros ($2.06 billion-$2.60 billion).

On Friday, RWE highlighted that European wholesale market energy prices have notably decreased in recent weeks.

Alongside this warning, the company released preliminary earnings for 2023, surpassing its initial outlook for the year.

According to JPMorgan analysts, RWE typically sets conservative targets for its trading business. However, they believe that the consensus is likely to decrease in order to incorporate lower commodity price assumptions. This aspect is expected to be the primary focus in the market.

RWE intends to disclose its full year-end result on March 14.

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