German energy provider EON sees record loss amid renewables surge


German utilities giant EON on Wednesday recorded record losses of 5.7 billion euros (6.1 billion dollars) for the first nine months of 2015 as its older fossil fuel power plants declined in value amid a switch to renewable energy.

The chief cause was a writedown of 8.3 billion euros due to the recent decline in fuel prices, meaning many of its energy plants are barely turning a profit.

The announcement comes months after the company reported a record annual loss for 2014 of 3.2 billion euros, also prompted by a writedown in assets.

Nonetheless, EON said it still forecast a profit of between 1.4 billion and 1.8 billion euros for 2015 and expected to pay a divided of 50 cents per share for the year. It also noted that it had lowered its debt levels by 5 billion euros to 28.1 billion euros.

It also said it plans to keep its energy prices stable.

EON chief Johannes Teyssen said the company will go ahead with plans to split the company into two by the start of 2016, with one part focused on conventional energy production and the other devoted to renewable energy products.