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(German Energy Giant) RWE Profit Slumps 20% on Nuclear Shutdowns, Lower Gas Sales
When you read all the press about gloom, doom and disaster in Germany's move to go towards renewables in a big way, just remember that this is the real disaster that producing the gloom and doom - and alleviating that corporate pain is what motivates the endless negativity about the transition.
RWE Profit Slumps 20% on Nuclear Shutdowns, Lower Gas Sales
By Kari Lundgren and Stefan Nicola on May 10, 2012
RWE AG (RWE), Germany’s second-biggest utility, said first-quarter profit dropped 20 percent as Chancellor Angela Merkel’s nuclear phase-out curbed power- generation earnings and gas sales fell.
Recurrent net income, the measure used to calculate the dividend, fell to 1.29 billion euros ($1.67 billion) from 1.61 billion euros a year earlier, the Essen-based company said today in a statement. That’s in line with the 1.33 billion-euro average estimate of 14 analysts surveyed by Bloomberg.
RWE and larger peer EON AG (EOAN) are overhauling operations after Merkel ordered the permanent halt of all nuclear reactors by 2022 following Japan’s Fukushima disaster. RWE’s earnings were hurt by a loss of revenue from two atomic plants taken offline in the first wave of shutdowns. The company sold 9 percent less power in the quarter, while gas sales volumes shrank 12 percent.
The lower results were “largely due to the deterioration of power-generation margins and heavy burdens suffered in the gas midstream business,” Chief Executive Officer Jurgen Grossman said in the statement, while maintaining guidance for the year. RWE will “make up lost ground” because the effects from Germany’s energy-policy change were “one-off,” he said....
By Kari Lundgren and Stefan Nicola on May 10, 2012
RWE AG (RWE), Germany’s second-biggest utility, said first-quarter profit dropped 20 percent as Chancellor Angela Merkel’s nuclear phase-out curbed power- generation earnings and gas sales fell.
Recurrent net income, the measure used to calculate the dividend, fell to 1.29 billion euros ($1.67 billion) from 1.61 billion euros a year earlier, the Essen-based company said today in a statement. That’s in line with the 1.33 billion-euro average estimate of 14 analysts surveyed by Bloomberg.
RWE and larger peer EON AG (EOAN) are overhauling operations after Merkel ordered the permanent halt of all nuclear reactors by 2022 following Japan’s Fukushima disaster. RWE’s earnings were hurt by a loss of revenue from two atomic plants taken offline in the first wave of shutdowns. The company sold 9 percent less power in the quarter, while gas sales volumes shrank 12 percent.
The lower results were “largely due to the deterioration of power-generation margins and heavy burdens suffered in the gas midstream business,” Chief Executive Officer Jurgen Grossman said in the statement, while maintaining guidance for the year. RWE will “make up lost ground” because the effects from Germany’s energy-policy change were “one-off,” he said....
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