* Q1 adjusted EBITDA 745 million euros, down 15 percent
* Still expected adj EBITDA to fall by up to 5 pct in 2014
* Hit by weak prices, mild winter, ailing coal and gas
(Recasts, adds details on industry)
FRANKFURT, May 9 EnBW, Germany's
third-biggest utility, said its core profit fell 15 percent in
the first quarter, weighed down by a mild winter, lower
wholesale power prices and a rise in renewable capacity that has
hit its thermal power plants.
First-quarter adjusted earnings before interest, tax,
depreciation and amortisation (EBITDA) declined to 745 million
euros ($1.03 billion), the group said on Friday.
It still expects adjusted EBITDA to fall by up to 5 percent
German utilities are facing a structural crisis, after low
demand for energy in Europe plus uncontrolled expansion of solar
and wind power have hurt their conventional power plants - once
the backbone of their business.
EnBW, along with larger peers E.ON and RWE
, is having to spend more money on new businesses -
including renewables and energy efficiency - at a time when the
group is struggling with 6.9 billion euros in net debt.
In an effort to raise cash, the company has embarked on a
2.7 billion euro asset disposal programme, including its 22.48
percent stake in local peer MVV as well as its
32.5-percent stake in Austria's EVN AG.
Chief Executive Frank Mastiaux, who joined the group after
heading E.ON's renewable and international businesses, has
pledged to shift the company away from being a pure generator of
energy and towards a service provider, helping customers to
manage and reduce energy consumption.
EnBW is 46.75-percent owned by the German state of
Baden-Wuerttemberg and another 46.75 percent is held by nine of
the German state's municipalities, leaving it with a free float
of 0.39 percent.
($1 = 0.7214 Euros)
(Reporting by Christoph Steitz. Editing by Jane Merriman)