Christoph's Feed
Mar 17, 2014

RWE to sell DEA to Russian-led investors for 4.26 billion pounds

FRANKFURT (Reuters) – Shares in troubled utility RWE (RWEG.DE: Quote, Profile, Research) rose after it reached a deal to sell its oil and gas production arm to investors led by Russian tycoon Mikhail Fridman for 5.1 billion euros (£4.26 billion), a high price but the group will lose one of its main profit drivers.

At 1157 GMT, shares in RWE were 1.1 percent higher, outperforming a 0.9-percent rise in the STOXX Europe 600 Utilities Index , with traders and analysts welcoming RWE’s sale of its DEA unit RWEDE.UL to Fridman’s investment vehicle LetterOne.

Mar 17, 2014

RWE to sell DEA to Russian-led investors for $7.1 billion

FRANKFURT (Reuters) – Shares in troubled utility RWE (RWEG.DE: Quote, Profile, Research, Stock Buzz) rose after it reached a deal to sell its oil and gas production arm to investors led by Russian tycoon Mikhail Fridman for 5.1 billion euros ($7.10 billion), a high price but the group will lose one of its main profit drivers.

At 1157 GMT, shares in RWE were 1.1 percent higher, outperforming a 0.9-percent rise in the STOXX Europe 600 Utilities Index , with traders and analysts welcoming RWE’s sale of its DEA unit RWEDE.UL to Fridman’s investment vehicle LetterOne.

Mar 16, 2014

RWE sells oil and gas unit to group led by Russia’s Fridman

FRANKFURT/DUESSELDORF, Germany, March 16 (Reuters) -
G ermany’s debt-burdened utility RWE has struck a deal
to sell its oil and gas production arm DEA to a group
of investors led by Russian tycoon Mikhail Fridman, valuing the
unit at about 5.1 billion euros ($7.10 billion) including debt.

Under pressure from a deep and prolonged industry crisis,
caused by a surge in rivals’ renewable capacity as well as weak
energy demand in its core market Europe, RWE has been looking
for ways to reduce its debt pile of more than 30 billion euros,
including cutting jobs and shedding assets.

Mar 12, 2014

E.ON, Enel to shut more plants as European power crisis bites

DUESSELDORF, Germany/MILAN, March 12 (Reuters) – E.ON
and Enel, two of Europe’s largest power
utilities, said on Wednesday they plan to shut more plants and
cut costs, joining rivals in warning that the industry crisis
will weigh on profits for years to come.

Utilities across Europe have been taken by surprise by a
surge in output from renewable energy sources, mainly solar and
wind, making many fossil-fuelled thermal plants redundant and
leading to a collapse in wholesale power prices.

Mar 12, 2014

European utilities E.ON, Enel to close power plants, cut dividends

DUESSELDORF, Germany/MILAN, March 12 (Reuters) – E.ON
and Enel, two of Europe’s largest power
utilities, are to shut more plants and cut costs, they announced
on Wednesday, joining rivals in warning that the industry crisis
will weigh on profits for years to come.

Utilities across Europe have been taken by surprise by a
surge in output from renewable energy sources, mainly solar and
wind, making many gas and coal-fired thermal plants redundant
and leading to a collapse in wholesale power prices.

Mar 12, 2014

E.ON cuts dividend, closes plants in deep sector crisis

DUESSELDORF, Germany, March 12 (Reuters) – E.ON,
Germany’s biggest utility, on Wednesday proposed nearly halving
its dividend for 2013 and said it would shut more than a quarter
of its power plants in Europe in response to a rise in
renewables that has rattled utilities across the continent.

Europe’s sixth-largest utility by market value said core
profits in 2014 would decline for a third year adding a sector
crisis would linger on for the foreseeable future.

Mar 6, 2014

Germany’s solar sell-off: picking up the remaining pieces

FRANKFURT, March 6 (Reuters) – Foreign investors are looking
to snap up what is left of Germany’s once-booming solar
industry, in time to benefit from an expected global recovery in
the sector.

During the last decade, Germany pioneered the solar industry
by throwing billions of euros in subsidies at it, making it the
world’s largest market for solar panels in the process.

Mar 4, 2014

RWE warns of frugal future after historic net loss

ESSEN, Germany (Reuters) – Germany’s biggest power producer RWE AG (RWEG.DE: Quote, Profile, Research, Stock Buzz) said forays into new business areas would not be enough to fill a hole left by the demise of conventional power plants, offering little hope that the group can regain its former earnings potential.

The company on Tuesday posted a net loss of 2.76 billion euros ($3.80 billion), its first in more than six decades, after a surge in solar and wind capacity undercut the profitability of its power plants and triggered nearly 5 billion euros in writedowns.

Mar 4, 2014

RWE posts historic net loss as writedowns bite

ESSEN, Germany, March 4 (Reuters) – Germany’s biggest power
producer RWE AG has posted its first annual net loss
in more than six decades, after a surge in solar and wind
capacity undercut the profitability of its power plants and
triggered nearly 5 billion euros ($6.9 billion) in writedowns.

The company said on Tuesday it had swung to a net loss of
2.76 billion euros from a profit of 1.31 billion a year earlier,
its first net loss since 1949. Sources had told Reuters on
Friday that the group may post a full-year net loss of close to
3 billion euros.

Feb 26, 2014

Denmark’s Danfoss to buy stake in SMA Solar for $415 mln

FRANKFURT, Feb 26 (Reuters) – Danish energy firm Danfoss A/S
will buy a fifth of SMA Solar for 302 million euros
($415 million), the German company said on Wednesday, hoping to
gain a strong shareholder in its fierce battle against low-cost
Asian rivals.

SMA Solar – the world’s largest maker of solar inverters, a
key component needed to feed solar electricity into the power
grid – was long protected from an industry crisis that has
claimed many makers of solar cells and modules, including
Q-Cells, Solon and Conergy.

    • About Christoph

      "I'm responsible for the coverage of German renewable companies, mainly solar, at Reuters News. Previously, I have worked as a correspondent at Thomson Financial News, covering German technology and construction companies."
    • Follow Christoph