Germany's E.ON slashes debt after $17 billion record loss

Cornelia Mascio
Marzo 15, 2017

Energy giant E.On has reported a €16bn loss after slashing its debt to move on from "the burdens of the past".

The group's decision to spin off fossil fuel based-plants and energy trading previous year and rebrand it Uniper has been less well received than a plan by rival RWE (RWEG.DE) to float its healthy assets - renewables, networks and grids.

Its charges coming from a year ago included a €13bn writedown on the value of recently spun-off power business Uniper. "Its balance sheet for the 2016 financial year will be the last to reflect the burdens of the past".

Like other European competitors, EON has suffered in recent years from low wholesale electricity prices, competition from subsidised renewable energy, and the German government's decision to ditch nuclear power by 2022.

But the energy firm also pointed to operating, or underlying profit of 3.1 billion euros excluding such special items as proof of its "robust" core business.

SE (EONGY) said Wednesday it may sell a series of assets in order to cut its €26 billion debt pile after writedowns pushed Germany's biggest utility into a record loss.

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