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03.12.2015 15:22
RWE Envisages Business Split
The new company will take control of RWE’s renewables, grids and retail operations in Germany and abroad to create a “platform for growth” which will “strengthen the viability of the group overall”
AUTHOR: publics.bg


  • © ali_pk, flickr.com

In January RWE ruled out an Eon-style split of upstream and supply-side business arms in the near-term, but the company then surprised the market on Tuesday by saying it will create a new “innovative decentralised energy group” within a year.

The new company will take control of RWE’s renewables, grids and retail operations in Germany and abroad to create a “platform for growth” which will “strengthen the viability of the group overall”, utilityweek.co.uk wrote.

RWE will remain a majority shareholder of the company but will focus on the firm’s beleaguered conventional power generation and energy trading operations.

The move should enable RWE more flexibility to manage the costly state-mandated nuclear phase out which - combined with weak market signals for thermal generators - has eroded energy company profits over recent years.

RWE reported double-digit operating profit losses in its first half financial results, blaming the 11 per cent operating losses to EUR 2 billion for H1 on continued decline in profit margins from its conventional generation fleet.


TAGS: RWE | split | spin-off | energy | renewables | upstream | electricity trading 


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