Energy supplier E.ON posts €7bn loss

German energy giant E.ON has announced a record loss for the second year in a row. The owner of the Big Six firm said its annual net losses more than […]

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By Priyanka Shrestha

German energy giant E.ON has announced a record loss for the second year in a row.

The owner of the Big Six firm said its annual net losses more than doubled to €7 billion (£5.4bn) last year.

It blamed an €8.8 billion (£6.8bn) write-down in the value of its loss-making power plants.

“We recorded these charges primarily on our generation assets after reviewing our assumptions regarding the long term development of electricity and fuel prices,” CEO Johannes Teyssen said.

E.ON added its spin-off of its oil and gas activities from its renewable energy divisions, which was completed in January, would also affect its outlook for 2016.

Uniper will focus on the “conventional energy world” and has a portfolio of assets with a “strong emphasis” on flexible gas-fired power plants and global energy trading. Its generation fleet includes around 40GW of capacity in Europe and Russia.

The energy firm stated “the course ahead will be tougher and longer than anticipated”.

However Mr Teyssen added: “Our results for the 2015 financial year demonstrate that both E.ON and Uniper are solidly positioned operationally and financially. When the two companies have gone their separate ways, we’ll be able to do a better job next year of bringing our operating strengths to bear. E.ON will focus on the new energy world, and Uniper will play a strong role in the conventional energy world.”

Yesterday npower also reported annual losses of £106 million and confirmed 2,400 jobs will be lost.