Arab Today, arab today rwe gloomy for 2016 outlook after profits fall in 2015
Last Updated : GMT 01:27:57
Arab Today, arab today
Arab Today, arab today

RWE gloomy for 2016 outlook after profits fall in 2015

Arab Today, arab today

Arab Today, arab today RWE gloomy for 2016 outlook after profits fall in 2015

RWE's adjusted net profit was down 12 percent at 1.1 billion euros in 2015
Frankfurt - AFP

 German power giant RWE on Tuesday confirmed its forecast for a further decline in profits this year as Germany's transition away from conventional power continues to squeeze margins and the group announced an overhaul of its British operations.

"The company is planning new steps to increase its operating effectiveness, focusing on conventional power generation and the UK supply business, which it intends to comprehensively restructure," RWE said in a statement.

It did not reveal the exact details of the overhaul, but said that "measures to restructure the UK supply business have begun, and RWE expects further burdens in this area in 2016."

The group's British unit npower announced separately it would axe 2,400 jobs after posting an annual loss on fierce competition and sliding sales.

Npower, which employs a total workforce of 11,500, said it suffered an "extremely disappointing" performance and would shed "around" 2,400 jobs by 2018 in a new cost-cutting drive.

At group level, RWE largely confirmed preliminary 2015 results released last month.

Underlying or operating profit fell by four percent to 3.8 billion euros ($4.2 billion) and adjusted net profit was down 12 percent at 1.1 billion euros.
But the unadjusted bottom-line loss amounted to 170 million euros.

RWE, with its sprawling portfolio of coal-fired power stations all across Europe, is feeling the pinch from the collapse in wholesale electricity prices and increased competition from suppliers of energy from renewable sources.

Power utilities have complained that the cost of having to close down their nuclear power plants and the heavy subsidies afforded to renewable energy have pushed them deeply into the red.

RWE has been repeatedly compelled to writedown the value of its coal-fired plants and took a 2.1-billion-euro charge again last year.

Looking ahead to the current year, forecast a "considerable decline" in profits, with operating profit set to drop to 2.8-3.1 billion euros and adjusted net profit to 500-700 million euros.

"One principal reason is the price-induced decline in margins in conventional power generation, which efficiency-enhancement measures will only partly offset," RWE said.

"Despite the difficult economic environment, both net debt and headcount are expected to remain constant at a group level," it added.

In December, RWE announced plans to spin off its renewables, grids and retail operations and take the unit public.

Bigger rival E.ON is similarly splitting its conventional and renewable energies operations into separate entities.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today rwe gloomy for 2016 outlook after profits fall in 2015 Arab Today, arab today rwe gloomy for 2016 outlook after profits fall in 2015

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 21:49 2017 Thursday ,16 February

Scientists develop new therapy

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday