FRANKFURT--German power utility RWE AG (RWE.XE) said Monday earnings plunged in the first nine months of the year, weighed on by losses from the sale of long-term securities to finance the company's contribution to a state nuclear-waste fund.
Net profit came to 11 million euros ($11.9 million) compared with EUR1.94 billion in the year-ago period. Adjusted after-tax profit fell 58% to EUR227 million.
Operating profit was down 20% to EUR2.12 billion on revenue of EUR33.21 billion, the company said.
Both RWE and rival E.ON SE (EOAN.XE) have split their conventional power operations from their renewable power generation businesses in a bid to attract investors. Like other European utilities, the companies have been hit by low wholesale electricity prices, spawned by a rise in renewable energy and cheap oil prices.
"Given the difficult conditions above all for conventional power generation, we've achieved a respectable result for the first three quarters," RWE Chief Financial Officer Markus Krebber said.
RWE listed its renewable energy, grid and retail unit, Innogy SE (IGY.XE), in the fourth quarter, and it is fully consolidated in the parent company's latest earnings results.
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(END) Dow Jones Newswires
November 14, 2016 01:46 ET (06:46 GMT)
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