RWE's chief executive Peter Terium has admitted the group had been "unable to predict the continued decline in electricity forward prices and the €2.1bn in power plant impairments that we had to recognise as a result," after posting an overall annual group loss.
German utility RWE has announced plans to buy back up to ten per cent of its capital stock. The group will seek shareholder approval in November to buy back 55m preference shares. It will also initiate a strategic re-orientation to focus its resources on expanding its energy business, but will retain its holdings in non-energy businesses, which it will hold as pure financial investments.
German conglomerate RWE AG plans to buy all of the shares in its Lahmeyer AG engineering and electricity unit that it does not already own. The move is part of a broader reorganization at RWE which aims to strip out some of its many layers of management.
German utility RWE Energie has increased its stake in Czech utility STA from 27.5 to 35 per cent. STA supplies electricity to consumers in the Prague region and central Bohemia. It has a 14 per cent share of the Czech electricity market.