RWE has suffered decline in profits – SPIEGEL ONLINE

From January to June this year, RWE earned less than the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined in the first half by seven percent to 3.2 billion euros, the company said. Thus, the fall in profits is down a bit higher than expected.

This was due mainly to the fall in prices in the wholesale electricity prices. But the distribution business in the UK is not working right. RWE expects this market now for the full year with a significantly lower profit than last year – originally the profit should rise there. The earnings estimates for the entire Group reserves RWE but in: The operating result is expected to fall in 2015 up to 3.6 billion euros, in 2014 there were four billion.

The operating profit in the UK fell in the first six months by 52 percent to 83 million euros. RWE fighting on the island with operational and technical issues, wrote CEO Peter Terium to shareholders. The IT system is vulnerable According to insiders for years. In semi-annual report, the Group refers to “process and system problems in the private client billing”. In addition, RWE is struggling with a loss of customers in the highly competitive market. The Group responded by offering cheaper rates.

RWE wants to restructure

But the main problem of the energy company are further the years fallen to its lowest level of electricity wholesale prices. The result of nuclear, coal and gas power plants fell by 27 percent to 752 million euros. The years do not now picked up momentum green power division could, however, improve their bottom line, among other things thanks to the commissioning of new wind farms by more than three-quarters to 382 million euros.

RWE infected anyway in a crisis. The Group has responded very late to the energy turnaround and is still heavily dependent on nuclear and coal power plants. This throw because of the decline of wholesale prices but from fewer and fewer. In a few years they could earn nothing.

Therefore wants RWE CEO Peter Terium rebuilt the corporate structure drastically – even splitting is possible, as E.on competitor already decided. Even E.on had in the first half of a decline in profits suffered.