FRANKFURT (Reuters) – Germany’s biggest utility E.ON (EONGn.DE: Quote, Profile, Research) warned it could close more generating plant than expected as plunging wholesale power prices and competition from renewable energy gnawed away at profit.
E.ON and German peers RWE (RWEG.DE: Quote, Profile, Research) and EnBW (EBKG.DE: Quote, Profile, Research) have been hit by a mix of record-low wholesale power prices, weak demand driven by recession in Europe and a state-backed expansion of renewables that has hurt profitability of conventional gas and coal-fired plants.
FRANKFURT (Reuters) – E.ON (EONGn.DE: Quote, Profile, Research, Stock Buzz) warned that plunging wholesale power prices and booming renewables would continue to gnaw at its profits after Germany’s top utility posted a 15 percent drop in first-half core earnings.
E.ON, along with its German peers RWE (RWEG.DE: Quote, Profile, Research, Stock Buzz) and EnBW (EBKG.DE: Quote, Profile, Research, Stock Buzz), has been hit by a toxic mix of record-low wholesale power prices, weak demand for power in recession-hit Europe and a boom in renewable energy that has hurt profitability of conventional gas and coal-fired plants.
FRANKFURT, Aug 8 (Reuters) – Plunging prices for solar
equipment caused a bigger than expected loss at SMA Solar
, putting more pressure on Germany’s top sector player
to escape a crisis that has rattled most parts of the industry.
A glut of cells and panels as well as tough competition from
Asia has led to a pricing squeeze in the solar industry over the
past four years, pushing many former heavyweights into
insolvency including Q-Cells, Solon and
FRANKFURT, Aug 6 (Reuters) – Germany utilities are heaping
pressure on the government before September polls to soften
green policies that are hurting their profits, with one company
hinting it could even move gas or coal plants to countries where
it can still make money.
Germany’s 550 billion euro ($728 billion) plan to upgrade
and diversify its energy system, following a decision to abandon
nuclear power, has brought about a boom in wind and solar power.
FRANKFURT, July 30 (Reuters) – German chemicals firm Wacker
Chemie beat second-quarter earnings forecasts and said
a plunge in the price of polysilicon, which it supplies to the
crisis-hit solar sector, had come to an end.
Shares in the world’s second-biggest producer of polysilicon
jumped 7 percent to a 17-month high of 74.2 euros on Tuesday.
FRANKFURT/COPENHAGEN, July 22 (Reuters) – European and
Chinese wind turbine makers are poised to do battle away from
their domestic markets as the focus in the 60 billion euro ($79
billion) industry shifts to North America, Brazil and India.
Hit by overcapacity and plunging prices in Europe and
China’s saturated markets, manufacturers of wind turbines are
under pressure to find new areas of growth to boost single-digit
FRANKFURT, July 19 (Reuters) – German utility RWE AG
faces a tough choice in its efforts to sell oil and
gas unit DEA – hold out for a single buyer, or offload it in
The first option appeals as RWE pursues a disposal designed
to help it slash capital spending, raise an estimated 5 billion
euros ($6.6 billion) and cut net debt which stood at 33.2
billion euros at the end of March.
FRANKFURT, July 12 (Reuters) – Qatar has held initial talks
with Germany’s No.2 utility RWE AG about buying its
DEA oil and gas exploration and production unit, two
people familiar with the deal told Reuters on Friday.
However the talks are some way from bearing fruit. “The
project has been moving very slow and no decision should be
expected anytime soon,” one of the people said on Friday.
FRANKFURT, July 5 (Reuters) – German solar group Conergy
has filed for insolvency, putting about 800 jobs at
risk and becoming the latest casualty in an industry battered by
overcapacity, plunging prices and a trade dispute between Europe
Once Europe’s largest solar company, Conergy has been
fighting for months to secure fresh investment.
FRANKFURT (Reuters) – Germany’s No.2 utility RWE (RWEG.DE: Quote, Profile, Research, Stock Buzz) has doused hopes of an earnings boost following a legal ruling last week, compounding concerns about a looming profit squeeze and sending its shares to their lowest level in nearly two years.
Investors had hoped RWE would raise its full-year outlook after a court ruled Russia’s Gazprom (GAZP.MM: Quote, Profile, Research, Stock Buzz) had to base the prices it charged RWE in long-term contracts partly on spot-market rates and had to reimburse the German company for overpayments since May 2010.