German power company EnBW posts loss on reactor closures

21st July 2011, Comments 0 comments

Germany's third-biggest power company, EnBW, reported on Thursday a loss of 590 million euros ($840 million) in the first half of the year owing to a government decision to shut two of its nuclear reactors.

In the first quarter of 2011, EnBW had posted an annualised 52-percent drop in net profit to 387 million euros.

"The shut down of two reactor has resulted in substantial financial charges," a company statement said.

EnBW runs a total of four nuclear reactors in Germany, two of which are threatened by a plan announced in mid March to shut down the oldest plants in the country.

German officials have since decided to completely abandon nuclear energy by 2022, depriving EnBW and rivals like RWE and EON of important revenue sources.

EnBW is owned by the southwestern German state of Baden-Wuerttemberg, which is run by a coalition of the environmentalist Greens Party along with the left of centre Social Democratic Party.

Final results for the energy group are to be released on July 29.

© 2011 AFP

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