RWE AG, the German energy company, announced it will withdraw from its crude oil and natural gas production activities and will look to sell its oil and gas business RWE Dea AG. The move would be in line with the company's "strategic repositioning" and take pressure off future capital expenditure, which would help it improve its financial situation, RWE announced March 5.
The company said it is still evaluating how it will go about selling its oil and gas business.
The Associated Press reported the decision comes after the company reported net earnings in 2012 that were down by more than a quarter from 2011. In 2012, the company's net earnings were $1.7 billion, compared to 2.36 billion in 2011. RWE also reported a debt of nearly $43 billion at the end of 2012, the article stated.
RWG said, however, that it experienced fewer burdens in 2012 because it decided to phase out nuclear energy in Germany.
"We also benefited from strong earnings contributions from our efficiency program and successful trading activities," said Peter Terium, CEO of RWE AG.
The company also experienced a 10 percent increase in electricity generation in 2012, rising to 227.1 billion kilowatt hours.