Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

RWE Falls on Unchanged Outlook After Gazprom: Frankfurt Mover

RWE AG slid to a 21-month low in Frankfurt trading after Germany’s second-largest utility said its outlook for 2013 was unchanged even after a court ruled in its favour in a dispute over gas payments to OAO Gazprom.

RWE fell 5.2 percent to 23.25 euros by the close, the lowest closing price since September 2011. More than twice as many shares were traded compared with the three-month daily average. RWE was also the worst-performing stock on Germany’s benchmark index.

An arbitration hearing ruled that RWE should be reimbursed for some payments to Gazprom for gas supplies, and also altered the purchase price formula. RWE said in a statement today that the “financial effects” of the award were in line with its own expectations, without giving a figure.

“Many had hoped for an improved forecast for 2013,” Daniel Seidenspinner, an analyst at B. Metzler Seel Sohn & Co. KGaA, said by phone from Frankfurt. “The supposed agreement with Gazprom had been taken into consideration for the very optimistic outlook.”

RWE has fought for more flexibility on long-term contracts after losing hundreds of millions of euros as spot gas prices tumbled and demand slowed. Larger German competitor EON SE, Gazprom’s biggest European customer, reached an agreement with the Russian company on gas prices last July, which added about 1 billion euros ($1.3 billion) to the utility’s half-year results.

Gazprom will pay RWE one billion euros to compensate it over the gas contracts, Spiegel reported yesterday. RWE declined to comment on the size of the award.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.