Energy company in difficulty: RWE announces new cuts to – n-tv.de NEWS

 Economy
 

 Tuesday 08 March 2016

 
 
 

 
 Hard times for RWE: The Essenes power plant operators need their belts even more strapped than previously planned – and that, although the dividend is deleted and shares of green electricity daughter to be plated on the stock market .
 

 
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With the radical restructuring of RWE, the German tradition Group will also change the name and legal form for the majority of the company. The future society of the energy giant for Renewable Energy, networks and sales with around two thirds of the workers after the founding on April 1, initially RWE International SE hot, commented RWE CEO Peter Terium at the annual press conference in Essen.

The transition name be required for registration of a company, it said. In summer, RWE will then announce the final name for the company. The former RWE AG persists and leads, among other things, the power plants. The abbreviation SE on behalf of RWE International SE stands for “Societas Europaea” and is now common legal form for public companies in the European Economic Area. Also RWE competitor Eon had transformed from a German Aktiengesellschaft (AG) into an SE.

As RWE announced at the presentation of the final years, the energy company is at the same time before further savings. Especially in the traditional large power plants and in the UK sales business, there will be further austerity measures, such as the DAX companies announced in the morning. The plan is therefore to push the cost up to 2018 to a further 500 million euros. To date, RWE wanted to save a total of 2.0 billion euros.

As of the balance sheet 2015 shows the consolidated slipping into the red failed to prevent last year. The bottom line was a net loss of 170 million euros due to high depreciation of the large power plants and negative tax effects. The previous year, RWE had could posted a profit of 1.7 billion euros.

Getting an insight into the business, the Essen-based company analysts and investors had already been granted in mid-February at the presentation of preliminary figures. The now clarified overall result is only slightly below the announced sum of losses

price decline in wholesale electricity

That it is not about the finances at RWE for the best, had shareholders -. Including many municipalities – take after the supervisory board meeting last Thursday note: There, the control committee approved the proposal of the outgoing RWE boss Peter Terium to distribute only 13 cents per share this year the preference shareholders and – to emphasize dividend for ordinary shareholders completely – many places firmly planned .

in particular, the drop in electricity wholesale prices reported at the catering. That left the operating result alone in the business of nuclear, coal and gas power plants drop by almost half. Red numbers there were in the British distribution business where an IT conversion frightened customers.

RWE CEO Terium also expressed concern about the future of lignite power plants of the Group. The situation remains dramatic, according to documents the annual press conference. “A rapid recovery of the wholesale price of electricity is at least not in sight.” Although the brown coal power stations would still decades for backup power generation needs. “With a market price of around 20 euros per megawatt hour, lignite can not survive economically.”

crisis of conventional electricity

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RWE generated more than half One electricity from coal power plants. The wholesale prices of electricity have fallen through the expansion of green power and overcapacity in the lowest level in years. RWE is trying to counter this by cutting costs, but leads her to the limit. “Despite great achievements in the implementation of our efficiency program, the crisis of conventional power generation central determinant of earnings of RWE remains” Terium said.

The second largest after Eon German provider wants to expand its green energy business. The Group would likely bring the planned new company for green power, distribution and networks as planned end of the year on the stock market, reiterated Terium. After the planned IPO of first ten percent of the shares may be sold further. Terium held out the prospect that the company might therefore be able to provide funding in Parts nuclear phase. “So we could also obligations resulting from the settlement of nuclear energy flexibly operate without shirk our responsibility.”

  Source: n-tv.de
 

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