RWE is hurt by Germany’s exit from nuclear
ENERGY group RWE posted a 27.9 per cent fall in quarterly earnings yesterday on lower gas sales and Germany’s abrupt exit from nuclear power.
The firm said net income plunged to €1.3bn (£1.04bn), in line with forecasts. It blamed “significant one-off burdens” linked to Germany’s move last year to shutter its nuclear plants, in light of safety concerns highlighted by Japan’s earthquake and tsunami.
However, it maintained its forecast for flat full year profits.
Electricity sales fell nine per cent, due to divestments, but consumer turnover remained stable.
But gas sales dipped 12 per cent as declining wholesale prices made competition tougher.
RWE said it has further reduced its exposure to previously agreed high import prices and is on target to be free from crippling gas losses after 2012 at the latest. RWE warned investors in March to expect 2012 losses on gas trading to significantly exceed last year’s €800m hit.
The firm, which decided to ditch its Horizon nuclear joint venture in Britain earlier this year, said it was “very optimistic” about talks to sell the project.
RWE and E.ON had planned to spend £15bn on around 6GW of extra power generated by nuclear plants, making up more than a third of Britain’s expected rise in nuclear energy by 2025. NPower, RWE’s British consumer-facing arm, posted a 31 per cent slump in quarterly operating profit to £244m thanks to falling margins at its power generation arm and lower household power consumption.
Its shares closed 1.5 per cent lower yesterday at €31.67.