RWE plan to sell fewer assets after successful cost cutting

RWE plans to sell fewer assets after finding another €1bn of cost cuts and raising its capital as it positions itself for a future without nuclear power in its home market.

CityAM reports that the company, which owns British utility NPower, reported a 45 per cent drop in 2011 net profit..

It now plans to sell assets worth up to €7bn by the end of 2013, less than the previously targeted €11bn.

“The future looks much brighter than it did six months ago,” incoming chief executive Peter Terium said, adding he expects operating profit to remain flat this year and next as new power plant capacity and cost-cuts offset the impact of asset disposals.

Terium, who takes over as chief executive in July, is expected to lead a swift transformation of RWE to prepare for a phasing out of nuclear power in Germany by 2022, following Japan’s Fukushima disaster last year.

RWE’s earnings before interest, tax, depreciation and amortisation slipped 17.5 per cent to $13.2bn, hit by a drop in profits from power generation caused by the nuclear exit and a widening loss at its energy trading unit.

Its NPower unit reported a 34 per cent rise in operating profits to €357m (£313m), but it said gains in energy sales were hampered by costs related to energy saving programmes.

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