|Bid||31.89 x 410300|
|Ask||31.91 x 177800|
|Day's Range||31.25 - 32.03|
|52 Week Range||20.91 - 32.03|
|Beta (5Y Monthly)||1.24|
|PE Ratio (TTM)||2.07|
|Earnings Date||Mar 11, 2020|
|Forward Dividend & Yield||0.70 (2.25%)|
|Ex-Dividend Date||May 06, 2019|
|1y Target Est||N/A|
RWE, Germany's biggest power producer, will cut about 6,000 jobs, or nearly a third of its current workforce, by 2030 as the country moves to phase out brown coal as an energy source, the company said on Thursday. It also accelerates RWE's transformation into a pure renewables group, which - along with its low valuation - could turn it into a takeover target, Goldman Sachs said last week. RWE said it would receive 2.6 billion euros ($2.9 billion) in compensation from the government over 15 years to soften the blow to its business.
(Bloomberg) -- Chancellor Angela Merkel clinched a deal to kickstart Germany’s stalled coal exit, offering billions in compensation to utilities and affected regions so that closures of plants can start this year.In talks that began Wednesday evening and lasted well into the night, the government hammered out a timeline with state leaders to shut down the country’s coal-fired power generation by 2038, a plan that includes 40 billion euros ($44.6 billion) in compensation for impacted regions.Utility RWE AG, Germany’s biggest coal-fired power producer, will receive 2.6 billion euros in payments, according to a person familiar with the matter. The stock was up 1.7% mid-morning and a spokesman said the company would comment later Thursday. Lignite operators in eastern Germany will receive 1.75 billion euros, German Finance Minister Olaf Scholz said at a press conference in Berlin. Merkel has been in a tight spot on the issue, facing pressure from environmentalists and miners alike. Climate tops voter concerns, and Germany will already miss its 2020 targets under the Paris Agreement. On the other hand, the poorer states in the former Communist East, where the bulk of the mines are, fear a growing gap to the West. Her predicament feeds into a broader political challenge, with the Greens party and the far-right Alternative for Germany gaining support on both sides of the political spectrum to squeeze Germany’s traditional mainstream parties, including her Christian Democrats. The AfD has been particularly strong in the eastern mining states.“It was a long night -- it lasted until 2 a.m. -- but we were able to achieve a sensible agreement,” Armin Laschet, premier of the state of North-Rhine Westphalia, said in an interview with Deutschlandfunk radio. “The time frame that we’ve agreed on is ambitious, but realistic.”Laschet estimates that around 3,000 jobs in his state will be affected by the closures. The premier also confirmed closures will take place more rapidly in west German states. The biggest resistance to the plan had come from states in the former communist East, which relies most heavily on coal and has a lower per capita income than in the West.Under the agreement announced early on Thursday, LEAG’s Jaenschwalde power plant is to be transformed into a gas-fired unit. The Hambach Forest, which was threatened with destruction to make way for an RWE lignite mine, will be preserved, according to the government.The federal government will also pay for retraining programs for power and lignite mine workers affected by plant closures.The deal is part of a broader effort this week to showcase measures to combat climate change. On Tuesday, the government announced massive investment in railways so as to lure passengers from cars and planes, which have a higher carbon footprint.(Rewrites throughout)\--With assistance from Andrew Blackman and Chris Reiter.To contact the reporters on this story: Brian Parkin in Berlin at email@example.com;Birgit Jennen in Berlin at firstname.lastname@example.org;William Wilkes in Frankfurt at email@example.comTo contact the editors responsible for this story: Ben Sills at firstname.lastname@example.org, Raymond Colitt, Iain RogersFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
European shares ended higher on Thursday after the signing of a long anticipated Phase 1 U.S.-China trade deal lifted some level of near-term uncertainty, while disappointing earnings dragged down London shares. "Investors are maybe not selling on the fact but just pausing for thought that the deal has been signed which is also a source of relief for most people," said Russ Mould, investment director at broker AJ Bell. The pan-European STOXX 600 index closed up 0.2%, with London's main index lagging its continental peers.
RWE, an electricity producer capitalised at €18.5bn, will receive €2.6bn to shutter mines. This is a good outcome for RWE, and for smaller peer Leag, which will be compensated €1.6bn for the early closure of its mines in eastern Germany. Berlin is not known for munificence towards power producers.
Rolf Schmitz has been the CEO of RWE Aktiengesellschaft (ETR:RWE) since 2016. First, this article will compare CEO...
Germany will allow operators of coal power stations to keep their existing carbon emissions certificates after the units have been shut down, part of a compromise designed to reduce the cost to generators of a climate change package. Under plans seen by Reuters, the government will reduce by an equivalent amount the number of new certificates issued under a trading scheme that is designed to ensure that emitters of the greenhouse gas carbon dioxide pay for the environmental impact of their activities. The compromise means the government will earn less from the emissions trading scheme.
A law to compensate utilities for fading out coal energy generation in Germany will be subject to a formal vote as soon as an agreement among ministers has been reached, an environment ministry spokesman told a news conference on Tuesday. A spokeswoman for Germany's Economy Ministry, who also spoke at the event in Berlin, added that the government was working on the matter "with high priority". In an effort to meet its climate protection targets under international and European rules, Germany has decided to stop using coal for energy generation by 2038, a move that could prompt billions of euros in compensation payments for utilities.
RWE said it has raised its full-year guidance, in light of the reinstatement of the British capacity market and a strong trading performance in the first nine months.
The German government will not force hard coal power plants to close over the next seven years, a draft law expected to be approved by the cabinet next week showed on Tuesday. The plan not to force hard coal plant closures before 2026 risks making Germany's coal exit more expensive as the government would have to give operators generous financial incentives to shut down facilities voluntarily. The new plan is a reversal for the government, which had stipulated in a previous blueprint that utilities would be forced to deactivate hard coal power plants by 2026 if not enough closures happen voluntarily.
German utility RWE has a renewable project pipeline of more than 18 gigawatts (GW), mostly in the United States, it said on Monday, confirming it could pour up to 3 billion euros ($3.3 billion) into green energy sources a year. RWE has transformed itself by taking over the renewables activities of subsidiary Innogy and peer E.ON , which was part of a major reshuffle of Germany's power sector. The move has turned RWE into Europe's third-largest renewables group after Spain's Iberdrola and Italy's Enel.