March 7 (Bloomberg) -- Energie Baden-Wuerttemberg AG, Germany’s third-largest electricity supplier, said profit for 2013 slumped 89 percent as wholesale power prices declined.
Net income fell to 51 million euros ($71 million) from 484.2 million euros, it said in a statement. EnBW proposed an annual dividend of 69 euro cents, down from 85 euro cents.
EnBW is a victim of German plans to expand renewable energy and shut atomic plants. A surge in wind and solar power, now 23 percent of generation nationwide, has curbed electricity prices already weakened by recession in European economies. EnBW, which has relied on nuclear reactors for more than half its output, lost two of its four plants in a first wave of shutdowns.
Adjusted earnings before interest, taxes, depreciation and amortization fell 5.3 percent to 2.22 billion euros, compared 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.
Cost savings of 750 million euros targeted by 2015 will be reached and slightly topped this year, Chief Financial Officer Thomas Kusterer said today in a statement.
EnBW targets adjusted annual Ebitda of 2.4 billion euros in 2020, seeking to get three-quarters of its business from markets regulated by the government, it said. Conventional generation’s share will drop 80 percent by then and it seeks to counter that boosting profit from renewables by 250 percent, from grids by 25 percent to 1 billion euros, and doubling local-energy earnings.
“Our strategy follows the shifts caused by the energy turnaround,” Chief Executive Officer Frank Mastiaux said in the statement. “Traditional markets are shrinking but new interesting growth markets are arising that we are consistently reorienting ourselves toward.”
EON SE, Germany’s biggest utility, will report earnings on March 12. RWE, the second-largest, this week posted its first loss since the Federal Republic of Germany’s founding in 1949.
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