RWE executive telegraphs more cost cutting measures ahead

    The deputy chief executive of RWE Rolf Martin Schmitz has told a leading German newspaper that more cost cutting measures are inevitable at the company.

    Mr Schultz told Handelsblatt, “We will have to cut more costs. I cannot give any details yet. But we will have to get the costs down.”

    He added that, “Given the difficult market environment, I don’t see how we can avoid further cuts, particularly in 2018 and 2019, when things will get really serious,” he added, referring to a continued slump of power prices.

    RWE suspended its dividend in February and raised its savings target to $2.85bn by 2018.

    “We are still benefiting from the fact that we have sold power in advance. But it’ll get really tight in 2018/2019,” Schmitz said.

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