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Earnings

E.ON sells German nuclear power forward at above-market prices

FRANKFURT (Reuters) - Utility company E.ON EONGn.DE said on Wednesday it has sold forward 84% of its German nuclear power generation in 2021 and 52% of its 2022 output at prices above the current wholesale market, raising earnings prospects from that segment.

FILE PHOTO: A shareholder carries a bag with the logo of E.ON during the company's annual shareholders meeting in Essen, Germany May 10, 2017. REUTERS/Thilo Schmuelgen

The company has to date also sold 96% of output in the current year from reactors at its Preussen Elektra unit, it showed in presentation slides as it reported third-quarter financial results.

Production in 2020 was sold at 45 euros ($53.22) per megawatt hour (MWh), after its 2019 locked-in price had been 33 euros.

Hedge rates of forward production volumes are tracked by wholesale market traders and analysts to assess volumes tied up with counterparties and the value of future production.

As for achieved prices in the forwards, 2021 and 2022 delivery were sold at 44 euros and at 45 euros respectively, the slides showed.

By comparison, wholesale over-the-counter prices for German round-the-clock power from all conventional energy sources to be delivered in 2021 traded at 39 euros/MWh TRDEBYZ1 on Wednesday morning, according to Refinitiv Eikon data.

Baseload delivery for 2022 was untraded early, having closed at 43.1 euros TRDEBYZ2.

The German 2021 position, Europe’s benchmark, currently stands a fifth down from 12 months ago, but has recovered by 18% from its 2020 low in March of 33 euros when lockdowns in the coronavirus crisis caused a demand slump.[EL/DE]

E.ON retained its Brokdorf, Grohnde and Isar 2 reactors after an asset swap deal in which it transferred minority interests held by Preussen Elektra in the RWE-operated RWEG.DE Emsland and Gundremmingen C plants.[POWER/DE]

Sector peer Uniper UN01.DE on Tuesday published some nuclear and hydropower hedging results as part of its earnings report.

($1 = 0.8455 euros)

Reporting by Vera Eckert, editing by Kim Coghill

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