RWE scraps dividend after $220m annual loss

German utility RWE said this week that it will forgo paying a dividend on its 2015 stock after declaring its first annual loss since 2013. à‚ 

The €200m ($223m) loss was attributed to a €2.1bn impairment on power plants in Germany and the UK, as well as an additional €900m writedown in deferred taxes.

In a statement, RWE referred to “the recent dramatic deterioration of the earnings prospects” in the conventional power sector, while outgoing CEO Peter Terium (pictured) said the firm would “harness all of our forces in order to master the crisis in conventional power generation, while seizing the business opportunities we are offered by the structural change in the energy sector”.

The company’s shares dropped by 8 per cent on Wednesday in response to the news.

In December, RWE said it would spin off its renewables, power-grid and retail businesses into a new company in a “response to the transformation of the European energy landscape”. à‚ à‚ 

No posts to display