RWE Pulling Out from Oil and Gas Exploration and Production
Germany’s RWE AG today decided to withdraw from the exploration and production of crude oil and natural gas.
Therefore, RWE intends to look at the options for disposing of all of its shares in RWE Dea AG. The planned disposal would be in line with RWE AG’s strategic repositioning.
It would also take considerable pressure off future capital expenditure and therefore make an essential contribution to improving RWE’s financial headroom. The details of any transaction and how it would be implemented are still under evaluation. “Further important developments will be announced in due course in a suitable manner,” said the company in a statement.
In view of the structural changes in the European energy market and their effects on the Group’s earnings prospects, RWE expects its operating result to decline significantly after 2013. “We are a company that has to work hard for its future,” says RWE CEO Peter Terium, “and we will face the challenges created by the transformation of the German energy market.” The Group’s focus – to become “more sustainable, more robust and more international” – will stay the same, but will have to be pursued more slowly due to the limited financial headroom. However, high quality standards remain a priority. Describing RWE’s vision, Peter Terium says, “As a partner in the transformation of the European energy market, we want to be among the leaders in terms of performance and trustworthiness.”
March 5, 2013