Released September 05, 2016 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Europe's largest utility E.ON SE (FWB:EOAN) (Düsseldorf) has announced that the stock market listing for its new power business, Uniper, will take place on September 12, just a month after the company posted a net loss of 3.9 billion euro ($4.4 billion) for the first half of 2016.
Uniper was created at the start of the year to combine E.ON's conventional power generation, energy storage and global commodities business units. E.ON will focus on renewable energy and distribution grids. For additional information, see January 6, 2016, article - E.ON Splits Power Business.
E.ON said that the initial share price will be determined in an opening auction on the first morning of trading. "Neither Uniper nor E.ON are going to provide any guidance on the first price," the company said in a statement, releasing the prospectus. "It is expected that the first price will be established shortly after commencement of trading."
Uniper's first six months have been dogged by weak wholesale electricity prices in Germany and Scandinavia. The six-month loss can be attributed mainly to impairment charges amounting to about 2.9 billion euro ($3.2 billion) in its European power generation and gas storage businesses. Low power prices also hit its earnings before interest, taxes, depreciation and amortization (EBITDA) for its generation businesses, coming in one-fifth lower than predicted, at 400 million euro (S447 million).
The company's international power division took a major hit in EBITDA, dropping from 150 million euro ($167 million) to just 5 million euro ($5.6 million), thanks largely to a major fire at its Berezov power plant in Russia.
E.ON, along with fellow German utilities like RWE, have been struggling in recent years due to major changes in the country's energy mix and policies. The government's sudden U-turn on nuclear power in 2011 and the planned closure of all plants in the coming years has cost utilities billions of euros. In addition to this, the government is pushing ahead with its energy transition, or Energiewende, which supports the rollout of more renewables like wind and solar power in favour of coal and gas-fired power.
Following E.ON's lead, RWE AG (FWB:RWE) (Essen, Germany) split its company in two in April with the creation of innogy, a business housing its renewable energy, electricity grids and retail operations. For additional information, see April 5, 2016, article - RWE Launches New Renewable Energy Business.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Uniper was created at the start of the year to combine E.ON's conventional power generation, energy storage and global commodities business units. E.ON will focus on renewable energy and distribution grids. For additional information, see January 6, 2016, article - E.ON Splits Power Business.
E.ON said that the initial share price will be determined in an opening auction on the first morning of trading. "Neither Uniper nor E.ON are going to provide any guidance on the first price," the company said in a statement, releasing the prospectus. "It is expected that the first price will be established shortly after commencement of trading."
Uniper's first six months have been dogged by weak wholesale electricity prices in Germany and Scandinavia. The six-month loss can be attributed mainly to impairment charges amounting to about 2.9 billion euro ($3.2 billion) in its European power generation and gas storage businesses. Low power prices also hit its earnings before interest, taxes, depreciation and amortization (EBITDA) for its generation businesses, coming in one-fifth lower than predicted, at 400 million euro (S447 million).
The company's international power division took a major hit in EBITDA, dropping from 150 million euro ($167 million) to just 5 million euro ($5.6 million), thanks largely to a major fire at its Berezov power plant in Russia.
E.ON, along with fellow German utilities like RWE, have been struggling in recent years due to major changes in the country's energy mix and policies. The government's sudden U-turn on nuclear power in 2011 and the planned closure of all plants in the coming years has cost utilities billions of euros. In addition to this, the government is pushing ahead with its energy transition, or Energiewende, which supports the rollout of more renewables like wind and solar power in favour of coal and gas-fired power.
Following E.ON's lead, RWE AG (FWB:RWE) (Essen, Germany) split its company in two in April with the creation of innogy, a business housing its renewable energy, electricity grids and retail operations. For additional information, see April 5, 2016, article - RWE Launches New Renewable Energy Business.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
