EnBW Full-Year Profit Plunges 89% as German Power Prices Retreat

Energie Baden-Wuerttemberg AG (EBK), Germany’s third-largest electricity supplier, said full-year profit slumped 89 percent as wholesale power prices declined.

Net income fell to 51 million euros ($70.7 million) in 2013 from 484.2 million euros a year earlier, the Karlsruhe-based company said today in a statement. EnBW proposed an annual dividend of 69 euro cents, down from 85 euro cents.

EnBW is under pressure from Germany’s plans to expand alternative energy and shut atomic plants. A surge in wind and solar power, now 23 percent of generation nationwide, has curbed prices that were already weakened by Europe’s recession. EnBW, which had counted on reactors for more than half its output, lost two of four nuclear plants in the first wave of shutdowns.

Adjusted earnings before interest, taxes, depreciation and amortization fell 5.3 percent to 2.22 billion euros, in line with the company’s forecast for a 5 percent to 10 percent drop. EnBW sees adjusted Ebitda sliding as much as 5 percent in 2014.

EON SE (EOAN), Germany’s biggest utility, is due to report earnings on March 12. RWE, the second-largest, this week posted its first loss since the foundation of the Federal Republic of Germany in 1949.

To contact the reporter on this story: Tino Andresen in Dusseldorf at tandresen1@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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