Low en­ergy prices bite for Ger­many’s RWE

The Myanmar Times - - International Business -

GER­MAN en­ergy sup­plier RWE yes­ter­day blamed heavy third-quar­ter losses on low en­ergy prices, but in­sisted it could still meet its tar­get.

Net in­come at­trib­ut­able to share­hold­ers was 446 mil­lion eu­ros (US$482 mil­lion) in the red be­tween July and Septem­ber, the group said, down from 193 mil­lion in profit over the same pe­riod in 2015.

RWE had al­ready suf­fered a loss of more than 400 mil­lion eu­ros in the sec­ond quar­ter.

Ad­justed for spe­cial items, the group’s net profit stood at 227 mil­lion eu­ros be­tween Jan­uary and Septem­ber – a drop of 58 per­cent.

“In view of the dif­fi­cult con­di­tions, above all in con­ven­tional elec­tric­ity gen­er­a­tion, we recorded re­spectable earn­ings in the first three quar­ters,” chief fi­nan­cial of­fi­cer Markus Kreb­ber said in a state­ment.

But the group said it would meet its fore­cast of ad­justed net profit be­tween 500 mil­lion and 700 mil­lion eu­ros for the whole year.

Like other Ger­man en­ergy heavy­weights, RWE has faced stiff head­winds in re­cent years as it strug­gles to adapt to a chang­ing mar­ket.

Com­pe­ti­tion from sub­sidised re­new­able elec­tric­ity has bit­ten deep, while the group must pay bil­lions into a govern­ment fund to cover long-term stor­age of nu­clear waste.

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