FRANKFURT, July 12 (Reuters) - German utility E.ON sees no need for any writedowns as a result of current low power prices, its finance chief was quoted as saying in a German newspaper on Saturday.
Asked whether the current power prices were a reason for writedowns, Chief Financial Officer Klaus Schaefer told German newspaper Boersen-Zeitung: “Not at the moment. No dramatic changes occurred since the end of 2013 when we ran our last tests,” he said.
Europe’s power, gas and coal markets are in their sharpest downturn since the financial crisis of 2008 and traders say subdued demand and increasing capacity hurt chances of a big rebound any time soon.
Earlier this year German utility RWE had to write down 4.8 billion euros ($65.5 billion), mainly on its power plants, while GDF Suez took a 15 billion euro writedown for last year.
E.ON wrote down 3 billion euros in 2011 on a pessimistic outlook for long-term power prices.
“We had to adjust the value of our assets regularly in the past years. I guess we have started this process a little earlier,” Schaefer was quoted as saying. “It is a constant process and we continue to test the value of our assets.”
The rise in solar and wind capacity, which enjoy priority access to the power grid, has edged out gas-fired power stations, causing an impairment wave across Europe.
$1 = 0.7331 Euros Reporting by Harro ten Wolde; Editing by Elaine Hardcastle