E.ON & RWE Reporting Big Losses In Fossil Fuel Businesses In 2015
The German electric utility companies E.ON and RWE have reported large losses for 2015, largely owing to the decline of their fossil fuel businesses, according to recent reports.
The utility giant E.ON SE — the largest utility company in Germany — reported an annual net loss for 2015 of €7 billion (the largest yet for the company), following writing down the value of various fossil fuel power plants by around €8.8 billion.
“Our numbers reflect the far-reaching structural transformation that our industry is experiencing, and that continues unabated in the current year,” stated E.ON CEO Johannes Teyssen, in a recent public statement. “The general economic environment and the situation in our industry have (both) deteriorated significantly.”
Reuters provides further details:
E.ON blamed 8.8 billion euros in writedowns on its power plants, most of which have slid into loss as they no longer run the hours necessary to turn a profit, being increasingly replaced by solar and wind power.
The group said its earnings before interest, tax, depreciation and amortization (EBITDA) could decline by more than a fifth this year to between 6 and 6.5 billion euros.
The utility company RWE reported similarly high losses for the year — owing to an overall 45% decrease in the profitability of its coal, nuclear, and natural gas power plants (down to €543 million). The company’s renewable sector profitability increased more than 2-fold though — to €493 million in 2015, up from €186 million the previous year.
The company added around 1 gigawatt (GW) of new wind energy generation capacity (nameplate) in 2015.
“Renewables are increasingly becoming a main pillar of our business. Besides the operational business, our entire focus in 2016 will be on restructuring the group to lay the foundations for further growth,” noted RWE CEO Peter Terium in a recent press statement.
Related:
RWE To Split Off New Renewable Energy Company
E.ON Launching Home Solar Storage Option
E.ON To Divest From Fossil–Nuke Spinoff By 2018
Largest Energy Company In Germany Drops Fossil Fuels & Nuclear
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