Today, 8:13 AM
- RWE (OTCPK:RWEOY) announces plans to spin off its renewable energy, grids and retail operations into a new publicly traded entity by the end of next year.
- RWE says it will list 10% of the spinoff in the form of a capital increase, subject to approval at a Dec. 11 board meeting, and additional stakes may be sold at the same time or at a later date.
- The move comes after RWE had long shunned the strategy of its peer E.ON (OTCQX:EONGY), which will split its conventional power, trading and production operations into a new company next year.
- RWE shares trade as much as 8.5% higher in Frankfurt, but the stock is the biggest decliner on the DAX Index this year, falling 55%.
Fri, Nov. 20, 9:13 AM
- RWE (OTCPK:RWEOY) could consider pulling out of Britain if it fails to turn around the business, which has swung to a loss after billing problems and a rapid loss of customers, CFO Bernhard Guenther tells Reuters.
- RWE said last week it has lost ~200K customers in Britain YTD, sending its shares down 10%; it now has 5.4M customers in the U.K.
- Guenther says it would take at least until 2017 for RWE's Npower U.K. unit to return to profit from an expected mid double-digit million-euro loss this year.
Mon, Oct. 12, 9:14 AM
- Shares in E.ON (OTCQX:EONGY) and RWE (OTCPK:RWEOY) surge in European trading after a government review concludes German utilities have set aside enough money to decommission their nuclear plants.
- The results remove concerns that utilities may need to raise additional funding to pay for the dismantling process as well as the storage of nuclear waste, which had led investors to sell off German utility stocks in recent weeks.
- Several brokerages, including Deutsche Bank, Credit Suisse and Societe Generale, either upgraded their ratings or target prices on the utilities.
Thu, Jul. 2, 12:48 PM
- Germany's government is abandoning plans for a levy on coal-fired power plants but will reduce brown-coal power generation to safeguard its 2020 carbon reduction targets, a decision that helped send shares of utility RWE (OTCPK:RWEOY) sharply higher in European trading.
- In another positive for utilities, power providers will be compensated if they participated in a new "capacity reserve" system where brown coal plants can be switched back on if there are power shortages.
- The plans are welcomed by industry but condemned by environmental groups which accuse Chancellor Merkel of selling out to business interests.
- Industry had warned a coal levy could put up to 100K jobs at risk, and risked pushing coal-fired power generation into other European countries.
Thu, May 28, 10:55 AM
- Norway’s $900B sovereign wealth fund - the world’s biggest - will drop its holdings in companies and utilities that have heavy exposure to coal, according to a deal reached in the parliament that calls for the fund to exit companies with more than 30% of their revenue from coal.
- By excluding coal companies, the fund joins a growing divestment movement targeting fossil fuels.
- The fund previously exited companies that produce tobacco, nuclear weapons, cluster bombs and land mines. The Norwegian fund has stakes in a number of major utilities, including Duke Energy (NYSE:DUK), Dominion Resources (NYSE:D), the U.K.'s SSE (OTCPK:SSEZF), Italy's Enel (OTCPK:ENLAY) and Germany’s RWE (OTCPK:RWEOY) and E.ON (OTCQX:EONGY).
Fri, May 8, 3:59 PM
- Mikhail Fridman reportedly is preparing to sell his recently purchased North Sea gas fields, bowing to British threats to revoke the licenses for the assets unless the Russian billionaire relinquishes ownership.
- Fridman took ownership of the 13 gas fields in the U.K. North Sea as part of its purchase of Dea, RWE's (OTCPK:RWEOY) oil and gas unit, for €5.1B, but in February the U.K. government said it would block the deal on concerns about the impact of any future potential sanctions on Russia might have on the operation of the North Sea fields.
- Morgan Stanley is said to be advising the sale, which is expected to fetch a total of up to $1B (£656M).
Mon, Mar. 2, 7:41 AM
- British objections fail to stop German utility RWE (OTCPK:RWEOY) from selling its Dea oil and gas unit to Russian billionaire Mikhail Fridman’s LetterOne Group for €5B ($5.6B).
- RWE and Fridman are going ahead with the sale even as the U.K.'s energy regulator says it will not approve the sale of British North Sea natural gas fields, which form ~20% of the Dea transaction and represent 3%-5% of U.K. domestic gas output, on concerns that Fridman could be a target of sanctions that could result in the fields’ shutdown at a time when British gas output is declining.
- LetterOne also names fromer BP CEO John Browne, a member of the U.K.’s House of Lords, to lead its energy unit.
Fri, Jan. 16, 11:02 AM
- RWE (OTCPK:RWEOY +3.5%) agrees to sell its Dea oil and gas unit to a group of Russian investors by early March for €5B ($5.81B), €100M less than previously agreed to reflect the fall in oil prices.
- U.K. authorities have been hesitant to give their approval for the deal out of concerns that potential sanctions on the Russian buyers could endanger the unit's operations in the North Sea; in the revised transaction, RWE says the Russian group would now keep Dea's U.K. activities separate from the rest of the company's business for a number of years.
- The Dea sale is part of RWE's efforts to cut its €31B debt and would be booked in 2015.
Fri, Jan. 16, 10:40 AM
- Repsol (OTCQX:REPYY, OTCPK:REPYF) says it is abandoning oil and gas exploration off the Canary Islands after an initial survey failed to obtain results sufficient to merit future extraction.
- Repsol leads a consortium including Australia's Woodside Petroleum (OTCPK:WOPEF, OTCPK:WOPEY) and Germany's RWE (OTCPK:RWEOY) that planned to spend $350M on exploration in the area.
- The Spanish company had forecast long-term yields of 110K bbl/day of oil from the project, enough to cover ~10% of Spain’s oil consumption; a major discovery could have reduced Spain’s 99% reliance on energy imports.
Nov. 26, 2014, 11:48 AM
- Germany's utility lobby group BDEW says it sees no room for power plant operators to cut emissions unilaterally without fundamental reform of the power market, it said after talks with Germany's energy minister.
- Germany's government plans to force utilities to lower their CO2 emissions by 4.4M tons each year during 2016-20, as it struggles to meet its self-imposed target to reduce emissions by 40% by 2020 from 1990 levels.
- Major utilities RWE (OTCPK:RWEOY) and E.ON (OTCQX:EONGY), already struggling due to losses from their coal- and gas-fired generation fleet, are likely to be the most affected by the measure.
Sep. 12, 2014, 7:57 AM
- Germany's RWE (OTCPK:RWEOY) is seeking further cost cuts in its conventional power generation business as it continues to fight difficult market conditions, local media are reporting.
- The current savings target for its austerity program is at €800M ($1.03B), which reportedly will be raised by several hundred million euros.
- Like other European utilities, RWE has been struggling with excess power generation capacity as subsidized wind farms and solar plants have come on stream, plus poor energy demand in the weak European economy, have eroded power prices and dragged down earnings.
Aug. 14, 2014, 4:59 PM
- RWE (OTCPK:RWEOY) says it will close three unprofitable power plants, in addition to 10 closures previously announced, because subsidized renewable energies have created an electricity glut in Europe.
- RWE says the latest plant closures would remove 1 GW of capacity from the German market, bringing overall capacity coming offline to nearly 6.3 GW by the end of 2017; the company also has ended power purchase agreements with other utilities with a total capacity of 2.7 GW.
- The impact of the policies was felt in RWE's H1 results, announced today: Net profit excluding one-time items such as asset sales fell 62% Y/Y to €749M, on a 10% decline in revenue to €25.1B.
Apr. 15, 2014, 11:48 AM
- German utility RWE (RWEOY) formally agrees to supply Ukraine with natural gas this year, the first such deal by a European energy company after Ukraine's continuing political crisis put the country's traditional supplies from Russia in doubt.
- RWE says it will begin gas deliveries to Ukraine state-owned energy company Naftogaz via Poland immediately; the gas will be delivered at wholesale price levels, including delivery costs, but RWE does not provide an estimate of the expected volumes.
- Separately, the head of Gazprom (OGZPY) reportedly told a European energy leader that it will continue to provide a reliable supply of natural gas to the European market.
Mar. 17, 2014, 7:55 AM
- German utility RWE (RWEOY) says it reached a preliminary agreement to sell its oil and natural gas subsidiary, RWE Dea, to Russian billionaires Mikhail Fridman and German Khan for €5.1B, or ~$7B.
- The RWE Dea acquisition is the first known oil and gas transaction by the L1 Group, the investment vehicle the oligarchs set up to invest the estimated ~$14B they received for selling their shares of TNK-BP, BP's Russian oil affiliate.
- With worries that Russian natural gas exports to Europe, and particularly Germany, might be cut off amid the crisis in Ukraine, the timing of the sale of German energy assets to Russian investors seems unusual, NYT says.
Jan. 22, 2014, 9:38 AM
- RWE's (RWEOY) Dea oil and gas production and exploration unit has attracted at least three initial bids valuing the business at up to €5B ($6.8B) including debt, WSJ reports.
- But the German utility likely would generate much less cash than that from a deal because the overall valuation includes pension liabilities and debt of more than €700M.
- The highest valuation, at ~€5B, comes from Russian billionaire Mikhail Fridman through his energy investment vehicle L1 Energy; lower bids reportedly have come from Wintershall, the oil and gas exploration unit of German chemicals giant BASF (BASFY), and a consortium of KKR and Kuwait Petroleum Corp.
Nov. 29, 2013, 1:35 PM
- The U.K. government has asked the country's six biggest energy suppliers to freeze prices for gas and electricity, barring any major increase in wholesale fuel costs, until the 2015 election, BBC reports.
- The government seeks the commitment as part of a wider deal with firms that could cut annual bills by ~£50, and it wants to avoid another round of price rises that could be blamed on government green levies.
- Britain's "big six" energy companies, British Gas owner Centrica (CPYYF, CPYYY), SSE (SSEZF, SSEZY), RWE's npower (RWEOY), Iberdrola's Scottish Power (IBDRY, IBDSF), EDF Energy and Eon (EONGY), supply ~98% of the country's homes.
RWE AG is a German electric utilities company based in Essen, North Rhine-Westphalia. Through its various subsidiaries, the energy company supplies electricity and gas to more than 20 million electricity customers and 10 million gas customers, principally in Europe. RWE is the second largest... More
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