EON AG (EOAN) plunged the most in 20 years after Germany’s largest utility scrapped profit forecasts and said the shift to renewable energy presents “huge challenges.”
The Dusseldorf-based company said today it may have to cut dividends and close power stations because lower electricity prices in Germany are making it difficult for gas-fired plants to make money. EON is reviewing forecasts for the next three years because existing targets are no longer achievable.
Germany’s shift to renewables has helped cut wholesale power prices 15 percent this year as wind turbines contribute more electricity to the grid. EON has already seen earnings trimmed by Chancellor Angela Merkel’s decision to close all nuclear power plants after last year’s Fukushima disaster.
Continue reading at EON Falls Most in 20 Years After Utility Scraps Forecasts