RWE unveiled a loss of 5.7bn euros for 2016 and scrapped its dividend for the second consecutive year as the crisis in Germany’s energy sector deepened. The annual loss was largely due to a massive writedown of 4.3bn euros on its German power plants, as well as assets in the UK, Netherlands and Turkey. The announcement on the dividend comes almost a year to the day after it scrapped its payout for 2015. However, the utility said it expected to be able to pay a dividend of â‚¬0.50 per share for 2017 and at least maintain that level in subsequent years. In early morning trading in Frankfurt the shares were down 1.9 per cent at 13.25 euros. Like other German utilities, RWE has been hit hard by the country’s Energiewende, its radical shift away from nuclear and fossil fuels towards renewables. Energy generated from wind and solar has squeezed conventional power out of the market, leaving many coal and gas plants struggling to turn a profit.
FT 22nd Feb 2017 read more »