RWE Struggles on Gas

RWE has today revealed its concerns for its gas operations, predicting the fall in sales is set to increase despite a stable 2012.

In its official report for the first quarter of this year, the company said that, despite EBITDA of €3.1 billion and predicted income for 2012 on a par with last year, the market for gas remained difficult.

However, in a bid to improve the viability of gas, chief executive Chief Executive Juergen Grossmann has said that the company is in the process of renegotiating three additional gas contracts.

"We are now concentrating on the remaining price reviews with three major international oil and gas companies..." he said in the report. "We still expect these price reviews to be completed in 2013, at which time they will provide substantial relief."

The report also revealed today that the company's gas sales--which have been affected by competition in the market, Mr. Grossmann said today--had fallen by 12 per cent group-wide. The company said that while it had lost customers in Germany and the Netherlands, it had gained customers in the UK market.

Oil-linked gas prices continue to be problematic for RWE, which has struggled to remain competitive in light of a long-standing dispute with major supplier Gazprom.

Gazprom has so far refused to budge on price, with the matter currently in arbitration between the two sides.