Standard content for Members only
To continue reading this article, please login to your Utility Week account, Start 14 day trial or Become a member.
If your organisation already has a corporate membership and you haven’t activated it simply follow the register link below. Check here.
RWE is set to write down the value of its assets by €3.3 billion (£2.7 billion) when it announces its 2013 results in March, it announced on Tuesday.
Of that, €2.9 billion (£2.4 billion) reflects the plummeting profitability of its conventional power generation business. The remainder comes off the renewable energy business.
The move, which follows a write-down of €800 million (£660 million) last March, will hit net income for the year. However, the German-based utility said recurrent net income and Ebitda will not be affected.
Peter Terium, chairman of the executive board of RWE AG, said: “Throughout Europe, gas and hard coal-fired power stations in particular are under substantial economic pressure.
“By recognising this impairment, we are taking account of the fundamental changes in framework conditions on the European generation market in particular. However, we are already reacting to the difficulties in terms of earnings – with which all European power producers are faced – and are further reducing the costs of our power plant fleet with resolve, in order to increase our earning power.”
RWE’s difficulties have prompted speculation it could be tempted to sell UK retail business Npower. However, there are few likely buyers.
GDF Suez warned in November it plans to write down European power assets. A spokesman for Eon said it does not expect to follow suit, however.
Please login or Register to leave a comment.