* Q1 adj EBIT reaches 78 mln eur, down 11 pct
* Keeps 2013/14 outlook for adj EBIT 170-185 mln euros
FRANKFURT Feb 14 German utility MVV Energie
reported an 11 percent drop in first-quarter core
profits on Friday, blaming weak demand due to mild temperatures
and low wholesale power prices.
MVV's adjusted earnings before interest and tax (EBIT) fell
to 78 million euros ($107 million) in the October-December
period, while sales remained flat at 1.1 billion euros.
Ultra-low wholesale power prices, mainly caused by the
rampant expansion of subsidised renewable power that is
displacing output from gas and coal-fired plants, have thrown
Germany's utilities into crisis, forcing them to close or
mothball thousands of megawatts (MW) of capacity.
"The margin from generating electricity has fallen
consistently in recent years. Electricity volumes are now
marketed in full at this low level," Chief Executive Georg
Mueller said in a statement on Friday.
In addition, mild temperatures led to lower district heating
and gas turnover, the group said, adding that this was partly
offset by renewable electricity sales.
MVV said last year it would invest 3 billion euros in areas
such as renewables and energy efficiency by 2020.
MVV, with just 12.2 percent of its shares in free float, is
50.1 percent owned by the city of Mannheim. German peers EnBW
and RheinEnergie own 15.1 percent and 16.3
percent respectively, while GDF Suez of France holds
(Reporting by Christoph Steitz; Editing by Greg Mahlich)