E.ON to post historic loss

Germany’s E.ON is set to post its biggest loss, with insiders revealing the company will announced a EUR5bn ($5.4bn) loss on Wednesday.

Reuters say the beleaguered German utility will record the result for the first nine months of this year, making it the biggest loss in its history.
E.ON Building
Unnamed sources told the news agency that there would be around EUR8bn in impairments for the period, the source stating, “those have been long overdue," adding assets had plunged in value following years of falling wholesale power prices that have pushed many power plants into losses.

The group warned in September it would post a full-year net loss that would be a "mid-single-digit billion-euro" figure, blaming impairment charges of as much as 9 billion euros.

A significant aspect of the poor results is the decision forced on the company by the government to to backtrack on a plan to spin off its German nuclear plants next year, bowing to political pressure to retain liability for billions of euros of costs to dismantle them.

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