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RWE on Wednesday became the latest energy company to cut its earnings outlook for 2014, reflecting mild winter weather and the sale of its upstream oil and gas business.
The German-owned utility group is expecting an operating result of €3.9 to €4.3 billion (£3.2 to £3.5 billion) for 2014. That follows the sale of its upstream oil and gas unit RWE Dea to Russian consortium LetterOne for €5.1 billion (£4.1 billion).
RWE posted earnings before interest, tax, depreciation and amortisation (Ebitda) of €2.6 billion (£2.1 billion) in the first quarter of 2014, 16 per cent lower than the same period last year. Profits were hit by reduced gas demand and continuing tough conditions for conventional power generation.
Group chief executive Peter Terium said he was “satisfied” with the sale price for Dea and the deal would “improve our financial strength”.
Eon, EDF, Centrica and Drax results also showed the impact of mild weather and low wholesale power prices.
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