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Nov 12, 2013

EnBW’s profit hurt by low wholesale power prices

FRANKFURT, Nov 12 (Reuters) – Underlying profits at EnBW
Energie Baden Wuerttemberg AG, Germany’s third-biggest
utility, have been hit by lower wholesale power prices and weak
demand for energy due to the euro zone’s economic downturn.

The company reported on Tuesday a 2.5 percent fall in its
adjusted earnings before interest, tax, depreciation and
amortisation (EBITDA) to 1.816 billion euros ($2.43 billion) in
the first nine months of the year and said it still expected a
5-10 percent fall for the full year.

Nov 11, 2013

RWE to cut more jobs and costs in face of renewable boom

FRANKFURT (Reuters) – Germany’s No. 2 utility, RWE (RWEG.DE: Quote, Profile, Research), is expected to cut more jobs than planned, squeeze more costs and sell more assets when it reports earnings this week due to weaker prospects in electricity generation as the country shifts toward renewable energy.

RWE is set to slash a further 3,400 jobs and increase the scope of its savings programme, dubbed “Neo”, to 800 million euros $1.07 billion (669 million pounds), up from at least half a billion, a source familiar with the matter said in September.

Nov 4, 2013

SMA Solar counts on cost cuts, new markets in 2014

FRANKFURT (Reuters) – SMA Solar (S92G.DE: Quote, Profile, Research, Stock Buzz), the world’s top maker of solar inverters, expects sales to grow by up to 44 percent next year, banking on growth in Japan and the United States as well as hundreds of job cuts after European markets faltered.

Solar markets in Europe have taken a beating as governments pare back crucial subsidies, while a glut in cells, modules and inverters has led prices to collapse, driving many players out of the industry or into the arms of larger conglomerates.

Oct 31, 2013

Green makeover will be struggle for Germany’s RWE

FRANKFURT/DUESSELDORF (Reuters) – A latecomer to renewable energy, Germany’s RWE is trying to turn itself green at a time when it lacks the two resources it needs most: time and money.

Struggling with falling earnings, 35 billion euros ($48.2 billion) in net debt and a 72-percent drop in its shares from their 2008 peak, Germany’s no. 2 utility has slashed the amount of its own cash that it plans to invest in wind, solar and other renewables, and is embarking on a search for partners.

Oct 18, 2013

RWE asks for bids by end-December in DEA sale: sources

FRANKFURT (Reuters) – German utility RWE (RWEG.DE: Quote, Profile, Research, Stock Buzz) is asking potential buyers of its oil and gas unit DEA RWEDE.UL to submit offers by late December, in a deal that could fetch up to 5 billion euros ($6.8 billion), three people familiar with the matter told Reuters.

RWE, suffering from loss-making power plants, a boom in renewable power and 35 billion euros in net debt, said in March it planned to sell DEA to save billions of euros of investment in the exploration and production business.

Sep 6, 2013

Shareholders pile pressure on Germany’s RWE to present strategy

FRANKFURT/DUESSELDORF, Sept 6 (Reuters) – Concerned about a
possible dividend cut, top shareholders of RWE are
piling pressure on Germany’s No.2 utility to present a
convincing strategy on how to position itself as the country
experiences a renewable energy boom.

Europe’s largest economy has seen its energy sector slide
into crisis following its decision to abandon nuclear power by
2022, as a massive expansion of solar energy has dealt a heavy
blow to traditional utilities, forcing them to close plants
generating thousands of megawatts.

Sep 4, 2013

Next Kraftwerke bundles green power to meet German demand surges

FRANKFURT, Sept 4 (Reuters) – Power plant operator Next
Kraftwerke expects to nearly triple revenues this year as it
links solar, wind and biogas units to respond nimbly to
Germany’s sudden big surges in demand – a model it plans to
export to other countries.

“We’re basically acting like a big operator, it’s just about
many small power units that form a big one,” said Jochen
Schwill, co-chief executive of Next Kraftwerke, which runs one
of Germany’s largest so-called virtual power plants (VPP).

Aug 27, 2013

German energy crisis favours the fleet

BERLIN, Aug 27 (Reuters) – Germany’s half-a-trillion-euro
energy overhaul is forcing sector players to turn around their
business models fast, giving smaller groups a head start on the
country’s ponderous utilities.

Europe’s largest economy has seen its energy sector slide
into crisis following its decision to abandon nuclear power by
2022, as a subsidised boom in solar power has dealt a heavy blow
to traditional utilities, forcing them to close plants
generating thousands of megawatts.

Aug 15, 2013

Nordex lifts growth forecast after European boost

FRANKFURT, Aug 15 (Reuters) – Germany’s Nordex
raised its forecasts for sales and profit margins this year as a
new generation of products helps the wind turbine maker
outperform the European market.

The wind power industry is emerging gradually from an
overcapacity crisis and falling state subsidies as European
governments bank on wind power to reach renewable targets for
2020. Wind power is much cheaper than its solar counterpart.

Aug 14, 2013

RWE takes plants offline as renewable boom bites

FRANKFURT, Aug 14 (Reuters) – Germany’s No.2 utility RWE
followed peers by announcing cuts in generating
capacity, blaming an expansion of renewable energy that has
pushed many gas and coal-fired plants into losses.

Germany’s utilities are suffering from plunging wholesale
power prices, down by about a fifth year-to-date, and
subsidised renewable energy that takes priority feeding into the
grid, reducing the hours that many conventional plants can run.

    • 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."
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