RWE Gains Most Since April on Potential Cuts: Frankfurt Mover
The Essen, Germany-based company advanced 2.6 percent, the biggest jump since April 10, and the largest on the benchmark Dax index of national stocks today. The utility, which closed at 23.045 euros in Frankfurt, plans an extra 500 million euros ($660 million) a year in cost cuts, according to the report.
“The market seems to be surprised by the level of savings,” Sven Diermeier, an analyst at Independent Research GmbH, said by phone from Frankfurt. “RWE has never ruled out further cost cuts” and suggested prices might increase.
The company is studying the competitiveness of its power plants, said Lothar Lambertz, a spokesman at RWE Generation SE. He declined to comment on the level of savings or possibility of job cuts.
More than 10,000 megawatts of conventional capacity, particularly at gas- and coal-fed power plants is under “critical observation,” Chief Executive Officer Peter Terium said last week in an interview with Manager Magazin.
To contact the reporter on this story: Tino Andresen in Dusseldorf at firstname.lastname@example.org
To contact the editor responsible for this story: Will Kennedy at email@example.com