German energy company RWE, which owns Dutch supplier Essent, booked an unexpected drop in before tax profit of 7% to €3.19bn in the first quarter of 2015.
Analysts had expected a before tax profit of €3.26bn. Net profit fell 28% to €543m.
RWE, which owns coal, gas and nuclear fired power plants, is feeling the effects of the German government’s push for sustainable energy. The growing amount of green energy on offer has seen prices fall by over one-third in the past three years, according to the Financieele Dagblad.
This has led CEO Peter Terium to announce a far-reaching reorganisation to transform RWE ‘from a holding company into an operational company’. The FD says this means cost and job cuts, although the paper does not think these will affect Essent.
The Dutch energy company reported an increase in operational profit of 44% to €141m. ‘We profited from the influence of the weather on the sale of gas,’ Terium said of Essent’s figures.
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