Germany's E.ON has posted a record loss again hammered by a surge in renewable energy, plunging wholesale electricity prices and the country's plans to abandon nuclear power.
Germany’s largest energy firm, E.ON, has posted a record loss for the second year running.
Our numbers reflect the far-reaching structural transformation that our industry is experiencing
Its net loss more than doubled to 7.0 billion euros as it had to write down the value of power stations to the tune of 8.8 billion euros.
Those plants no longer run for enough hours to turn a profit, being increasingly replaced by solar and wind power.
“Our numbers reflect the far-reaching structural transformation that our industry is experiencing and that continues unabated in the current year,” Chief Executive Johannes Teyssen said in a statement.
“The course ahead will be tougher and longer than anticipated,” he added.
Germany’s traditional power firms have been hammered by a surge in renewable energy, slumping wholesale electricity prices and the government’s plans to abandon nuclear power after the Fukushima disaster.
Earlier this week its rival RWE reported big annual losses.
E.ON is also warning of future losses as supply contracts expire.
The results cast doubt over its plans to spin-off its ailing power plants later this year. That is part of the move to focus on renewables, networks and services.