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EnBW cuts dividend despite turning profit

Energie Baden-Wuerttemberg AG has proposed to cut its dividend even after returning to profit last year.EnBW

The Karlsruhe-based company, Germany‘s third-largest electricity supplier, will reduce its dividend by 20 per cent to 55 euro cents ($0.62) a share, it said in a statement. Its net income was EUR124.9m compared with a net loss of EUR465.9m a year earlier.

EnBW, which is almost entirely owned by its home state Baden-Wuerttemberg, wrote down the value of its traditional power generators by about $788m last year as renewable energy increased to about 30 per cent of national generation, pushing electricity prices to the lowest in more than a decade.

The company last month said it was in talks with investors to sell up to 49.9 percent in its 497 MW Hohe See offshore wind project by the end of the year.