RWE Expects Decline in Power Generation in 2014

Germany’s RWE expects a marked decline in power generation for 2014, while designing efficiency-enhancement measures to be implemented over the next four years. 

Releasing the outlook for 2014 and the results for the first three quarters of 2013, the company depicts a gloomy scenario for next year. 

‘The forecast for 2013 remains unchanged. EBITDA is expected to be in the order of EUR 9 billion, operating result about EUR 5.9 billion and recurrent net income around EUR 2.4 billion. From today’s perspective, in 2014 the company expects to achieve an EBITDA between EUR 7.6 and 8.1 billion, an operating result between EUR 4.5 and 4.9 billion and recurrent net income between EUR 1.3 and 1.5 billion,’ reads a note released on Thursday.

The company confirms stable development compared to the previous year, explaining that the results are ‘solely due to the one-off effect of the successful revision of the gas supply contract with Gazprom.’ 

RWE and E.ON are adjusting their strategy to decreased wholesale electricity prices driven by the German system ruling wind and solar power. 

The companies are selling assets and cutting costs. RWE is planning to reduce staff. Some rumours indicate that the staff cut might exceed the 10% of the present 67,750 jobs.