RWE expected to declare €3bn net loss

3 March 2014


RWE, Germany's second biggest utility, is expected to declare a net loss of about €3bn for 2013, in the latest sign of the crisis gripping European power producers.

The company will reveal the figure, the first time it has reported a full-year net loss, on Tuesday. An RWE spokeswoman would not comment.

"Profits of these power generators have been battered by the boom in subsidised renewable energy in Germany"

The net loss, first reported in the newspaper Handelsblatt, is attributable to writedowns for the year of €4.8bn, most of which is due to declining earnings from conventional power generation.

Profits of these power generators have been battered by the boom in subsidised renewable energy in Germany, where clean energy has favourable access to the grid. Utilities are also suffering from low wholesale power prices and weak demand because of the eurozone crisis.

RWE's net income for 2012 was €1.3bn. Its dividend payments will be based on a ratio of its recurrent net income, which was €2.5bn in 2012.



Linkedin Linkedin   
Privacy Policy
We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.