RWE Reports First Loss in 60 Years

Your next video will start in

Recommended Videos

  • Info

  • Comments


March 4 (Bloomberg) –- Bloomberg’s Manus Cranny reports on Germany’s largest power generator posting a loss for the first time in 60 years after a slump in electricity prices forced billions of euros in writedowns. He speaks to Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

-- that follows billions of euros in write-downs as power prices slump.

The first loss in 60 years, since german unification.

We knew that rwe had a ready taken -- we know they're having to take the financial pain up front.

I told us about that number a little while ago.

They go for one big slap at the end of 2013 so they can move on, stay can recalibrate this company.

A couple of other nuances in terms of savings programs.

They are a year ahead of that.

It is a great big loss, 2.7 billion euros.

That is down from a profit of 1.31. it is called the recurrent income.

They are still sticking to their guidance and this is important.

You might not see them call the bottom of their earnings.

They're still there, and they are still steadfast in the guidance.

We will pay between 40 and 50% of our income in 2014. that is good if you are a shareholder.

The savings plan is on track.

We have more capacity.

Trying to work out how to make sense of this.

To me it looks as if they will take off-line more than 50% additional.

I could bore you with megawatts, but that is the kind of percentage.

50% more capacity out of the system than what they had already told us.

The whole german landscape is changing a lot in terms of where they get their energy.

They want to get linn energy or renewal -- green energy or renewable energy, up to 45% of production.

That shows you the evolution of change.

You are seeing prices, prices have been under pressure all year.

Prices have been dropping by about 15%. that cuts profitability by up to 30%. the whole gamut of gas and

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change