Low energy prices bite for Germany’s RWE
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.