South Beats North at EU Utilities on Money-Making Renewables
- Spanish, Italian power company EPS forecast to grow next year
- German utilities dogged by slump in wholesale power prices
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Southern European utilities are poised to outperform their northern peers for a second year by relying on wind and solar power instead of dirty coal-fired generation.
Earnings will grow as much as 25 percent in 2016 at Madrid-based EDP Renovaveis SA, and shrink as much as 38 percent at RWE AG in Essen, Germany, according to the median of analyst estimates on Bloomberg. Spain’s Iberdrola SA and Endesa SA were among the 10 best performers in the Stoxx 600 Utilities Index last year, while RWE and U.K.-based coal-plant operator Drax Group Plc were the worst performers.