E.ON LOSES €7 BLN
European utility company E.ON made a net loss of €7bn during 2015, it announced March 9, with underlying net income of €1.6bn. This was similar to 2014 but it also took an €8.8bn impairment charge mainly related to its struggling generation assets.
E.ON CEO Johannes Teyssen said: "We posted solid operating results in a very difficult market environment.... But the course ahead will be tougher and longer than anticipated."
Power and gas prices have slumped in recent years as part of a general commodity market turndown. European power generators meanwhile have seen conventional thermal power plants facing growing competition from renewables.
"Our numbers reflect the far-reaching structural transformation that our industry is experiencing and that continues unabated in the current year," said Teyssen.
Fellow German-headquartered utility RWE also reported a loss for 2015 this week, and the companies are both embarking on major restructuring programmes. E.ON is splitting up its conventional power generation assets, which will be established as new spinoff Uniper, from its renewables and network assets, which will continue as E.ON. Shareholders will vote on the spinoff at their anual meeting on June 8.
"It's right for us to divide our operations into two companies, which will enable them to develop their respective businesses in line with their own strategy," Teyssen said.
The company has cut its net debt by €5.7bn to €27.7bn. It expects underlying net income for 2016 between €1.2bn to €1.6bn. "The first months of 2016 have seen new lows in energy prices, further declines in gas prices, and a persistently weak ruble," E.ON warned. The company has 9.9 GW of generating capacity in Russia.
E.ON's gas sales in 2015 amounted to 1,722bn kWh. This was actually up 47% from the previous year, with some impact from colder weather, but largely driven by a large increase in wholesale market volumes. Electricity sales for 2015 of 781bn kWh were steady from 2014.
|January, 19, 12:45:00|
|January, 19, 12:40:00|
|January, 19, 12:35:00|
|January, 19, 12:30:00|
|January, 19, 12:25:00|
|January, 19, 12:20:00|
PLATTS - For full-year 2017, South Korea's crude imports from its biggest supplier Saudi Arabia fell 1.7% to 319.02 million barrels, compared with 324.45 million barrels in the previous year, customs data showed. On the contrary, South Korea has imported 1.77 million mt, or around 13 million barrels, of crude from the US in 2017, about four times higher than in 2016. Shipments from Russia grew to 140,000 b/d last year from 112,000 b/d in 2016.
AOG - ADNOC’s 2030 strategy, he said, aims to capitalise on predicted global economic growth and demand for oil and petrochemical products, particularly in non-OECD countries. As its business responds to changing market dynamics, the company will continue to broaden its partnership base, strengthen its profitability, adapt to new realities and expand market access.
WNN - Under the terms of the assignment and purchase agreement it has signed with Nucleus and Brookfield, Toshiba will sell its rights to assert claims against Westinghouse related to the parent guarantees in the amount of $5.788 billion, and on account of other claims Toshiba holds against Westinghouse in the amount of $2.284 billion to Nucleus, for the sale price of $2.160 billion.
REUTERS - Brent crude futures LCOc1 were at $69.23 a barrel at 0808 GMT, up 8 cents from their last close, but down from a high of $69.37 earlier in the day. Brent on Monday rose to $70.37 a barrel, its highest since December 2014, the start of a three-year oil price slump. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $63.84 a barrel, down from a high of $63.89 earlier, but up 11 cents from their last settlement. WTI hit $64.89 on Tuesday, also the highest since December 2014.