Eon reported a net loss of €3bn for the first half of 2016, after writing off €2.9bn on the value of power stations, as the crisis in Germany’s conventional energy sector continued to deepen. Germany’s largest utility and its rival RWE have been battered by Germany’s Energiewende, its historic shift to renewables from fossil fuels and nuclear power. Heavily subsidised wind and solar have squeezed the conventional energy Eon produces out of the market, while declining wholesale electricity prices have made traditional power stations uneconomic. Eon has responded by dividing itself into two, with the conventional power generation assets and energy trading division grouped in Uniper — short for Unique Performance — and the renewables, networks and customer solutions businesses remaining with Eon. The company plans to float Uniper next month. For every 10 shares of Eon stock, shareholders will receive an additional one share of Uniper stock.
FT 10th Aug 2016 read more »
E.on recorded a loss of €3 billion for the first half of the year as it continued to suffer from Angela Merkel’s nuclear power shutdown and the switch to renewable energy sources. The German energy group said that revenues from its UK business plunged by 16 per cent during the period, as British customers deserted the provider for smaller rivals offering cheaper tariffs.
Times 10th Aug 2016 read more »