RUSSIA: MORE INVESTMENT
E.ON remains committed to business in Russia, Germany's largest utility said on Wednesday, seeking to reassure investors over fresh western sanctions imposed on Moscow over the crisis in Ukraine.
The European Union on Tuesday announced asset freezes and travel bans on 15 Russians and Ukrainians, a day after U.S. sanctions on seven Russians and 17 firms linked to Russia's President Vladimir Putin.
Putin said that Moscow saw no need for counter sanctions against the West, but could reconsider the participation of Western companies in its economy, including energy projects.
"In the long-term, we view the Russian power market as stable and expect a significant need to renew capacity as well as further investment opportunities," E.ON Chief Executive Johannes Teyssen told the group's annual general meeting.
The company also retained its 2014 profit outlook including earnings before interest, taxes, depreciation and amortisation (EBITDA) of 8-8.6 billion euros ($11.1 billion-$11.9 billion) and underlying net income of 1.5 billion-1.9 billion.
E.ON has spent about 6 billion euros in Russia since 2007, making it the biggest foreign investor in the country's electricity market.
"I can tell you that our working relationship with our Russian partners continues to be good," Teyssen said.
He added it was a weaker rouble that had impacted E.ON's earnings in Russia last year.
Russia accounted for 1.5 percent of group sales and 7.4 percent of EBITDA last year.
E.ON supplies power in Russia through local plants operated by E.ON Rossiya OAO, in which it holds more than 80 percent.
It is also a partner in Yuzhno Russkoye in Siberia, one of the world's largest gas fields, which feeds into the Nord Stream pipeline which runs under the Baltic Sea into Germany.
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REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.