Germany’s third-biggest utility will cut costs further in response to low wholesale prices and writedowns on plants, expecting the crisis in the energy sector to reduce profits by up to 5 percent this year.

EnBW is seeking to cut a further $424m from annual costs by 2020 as the increase in renewables, politically driven byEnBW the country’s Energiewende policy continues to impact on the company’s conventional power plant facilities.

Despite being an early adopter to the energy transition ahead of rivals, the company
reported a bottom-line loss of 450 million euros ($476 million) for 2014, compared with a profit of 51 million a year earlier.

Chief Executive Frank Mastiaux said the company would not stray from its objective to boost its renewables business, but even in that future-oriented segment the company’s operating profit sank by 13 per cent last year.

Bosses have pointed to a favourable comparison in terms of full-year losses.Analysts pointed out that EnBW’s losses were far lower than the $3.4bn loss incurred by Eon and the $1.38bn in losses logged at RWE in 2014.