RWE has performed slightly better than expected, in terms of profit, the company’s Q1 results have revealed.

The German utility saw earnings fall 6.5 per cent to $2.3bn. However, this was less than the expected figure from a Reuters poll, which had forecast $2.26bn.
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The company has been reeling in recent years from the impact of the German policy facilitating the development of renewable energy, Energiewende. Utilities like RWE have come to rely on being called upon for reserve capacity, while being forced to shut down much of its conventional power fleet.

However, prices recovered at the end of last year, when a cold winter coincided with extended French nuclear reactor outages.

“Because we have seen significant tightening in the first quarter, prices in reserve markets were much higher than usual and we have also operated more power plants than planned, mainly gas,” RWE’s Chief Financial Officer Markus Krebber told journalists.

“Basically, all available power plants ran straight for several weeks.”

The company reported its biggest ever net loss for 2016. It has cut costs at its power plant business and listed its renewable and networks unit Innogy last year as it tries to adjust its business model.