RWE hit by €3.3bn impairment
German utility RWE issued a warning that it has recognised an additional impairment of €3.3bn ($4.5bn), mostly due to losses at its fossil generation business that will reduce its non-operating and net income result for 2013.
About €2.9bn of the impairments are largely attributable to a significant deterioration in earnings in the continental European gas and coal power sector, but need for impairment has also been identified in the renewables segment and in its participation in other ventures, RWE said.
RWE couldn’t immediately tell what the issues at its renewables segment were, when contacted by Recharge early Tuesday.
"Throughout Europe, gas and hard coal-fired power stations in particular are under substantial economic pressure," says RWE chairman Peter Terium.
"We are already reacting to the difficulties in terms of earnings – with which all European power producers are faced – and are further reducing the costs of our power plant fleet with resolve, in order to increase our earning power."