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☆ Germany's half-a-trillion dollar energy bazooka may not be enough
▼ + stars: | 2022-12-15 | by ( Christoph Steitz | ) www.reuters.com time to read: +8 min

Almost half a trillion dollars, and counting, since the Ukraine war jolted it into an energy crisis nine months ago. The money set aside stands at up to 440 billion euros ($465 billion), according to the calculations, which provide the first combined tally of all of Germany's drives aimed at avoiding running out of power and securing new sources of energy. That equates to about 1.5 billion euros a day since Russia invaded Ukraine on Feb. 24. Energy rationing is a risk in the event of a long cold spell this winter, Germany's first in half a century without Russian gas. There's no security in sight either, with the push to build up of two alternatives to Russian fuel - liquefied natural gas (LNG) and renewables - years away from targeted levels.

☆ RWE CEO: optimistic power supply will remain stable during winter
▼ + stars: | 2022-12-10 | by ( ) www.reuters.com time to read: +2 min

Companies Rwe Ag FollowUniper SE FollowFRANKFURT, Dec 10 (Reuters) - RWE (RWEG.DE), Germany's top power producer, is fairly optimistic the country's power supply will remain stable during the winter months, its chief executive told a newspaper. "Germany will export more electricity to France this winter than ever before," Markus Krebber told Rheinische Post, referring to the fact that the neighbouring country has taken a record number of nuclear stations offline for checks. "The problems of the French nuclear power plants are also the reason why so many gas-fired power plants are running here. Nevertheless, I am reasonably optimistic that we will get through the winter well in terms of electricity." Turning to gas supply, where Germany is facing the first winter without fuel from Russia in five decades, Krebber said it all came down to temperatures.

☆ Volkswagen postpones decision on gigafactory in eastern Europe beyond 2022
▼ + stars: | 2022-12-08 | by ( ) www.reuters.com time to read: +1 min

PRAGUE/FRANKFURT, Dec 8 (Reuters) - Volkswagen AG (VOWG_p.DE) is postponing its decision on where to locate a planned gigafactory for electric car batteries in eastern Europe beyond 2022, the carmaker said on Thursday, pointing to the current economic environment. "Volkswagen AG and its battery company PowerCo are continuously evaluating suitable sites for their next gigafactory in Europe," Volkswagen said in e-mailed comments. "There is no pressure to act as we take some more time for decision making in light of current circumstances," Volkswagen said. "At present, there is no impact on planned start of construction or start of production." Volkswagen's planned battery cell plant in eastern Europe would be the fourth under its plan to build six such sites across Europe by the end of the decade.

☆ Volkswagen to invest $482 million in electrifying Wolfsburg plant
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: +1 min

BERLIN, Dec 7 (Reuters) - Volkswagen (VOWG_p.DE) will invest 460 million euros ($482 million) by early 2025 in its Wolfsburg plant, with most of the funds going into preparation for the production of the electric ID.3 model, brand chief Thomas Schaefer said on Wednesday. The MEB+ platform will provide faster charging times and longer ranges, according to the statement. The new model will add to our bestseller ID.4 and ID.4 models and expand our market position," he said. The timeline for production of the ID.3 is on track, with partial production to take place in Wolfsburg from 2023 and full production expected in 2024. ($1 = 0.9535 euros)Reporting by Victoria Waldersee; Editing by Christoph Steitz and Miranda MurrayOur Standards: The Thomson Reuters Trust Principles.

☆ Netherlands proposes EU gas price cap for state-backed buyers - document
▼ + stars: | 2022-12-05 | by ( Kate Abnett | ) www.reuters.com time to read: +2 min

Companies Uniper SE FollowBRUSSELS, Dec 5 (Reuters) - The Netherlands has weighed into the European Union's debate on whether to cap gas prices with an alternative proposal that would cap gas prices but only for government-owned or state-supported buyers. The Netherlands therefore proposed capping gas transactions by those buyers at a level below the cap proposed by the EU, and which would be reviewed each month. State-owned gas buyers in Poland, Italy and Austria could also be affected by the proposed Dutch cap. However, the Dutch cap would not directly intervene in the EU's exchange-traded gas markets, which some pro-cap countries say they want. EU gas prices surged after Russia cut deliveries following its February invasion of Ukraine, but prices peaked in August, coinciding with Russia taking the Nord Stream 1 pipeline offline and a drive among EU countries to fill up storage ahead of winter.

☆ Trafigura enters $3 bln loan to supply Germany's Sefe with gas
▼ + stars: | 2022-12-05 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, Dec 5 (Reuters) - Commodities trading firm Trafigura on Monday said it has entered into a $3 billion four-year loan to supply gas to German gas trader Sefe, formerly known as Gazprom Germania, and help Europe's largest economy secure volumes long-term. The deal comes as Germany is struggling to replace Russian gas volumes, formerly its biggest source but supply of which was fully stopped in August, with alternatives. The loan is jointly arranged and underwritten by Deutsche Bank (DBKGn.DE) and another international bank. The loan is partly secured by a guarantee under the Untied Financial Loan program of the German government acting through the German Export Credit Agency Euler Hermes AG, a division of Allianz (ALVG.DE). Trafigura said it would mainly use existing quantities from its global gas and LNG portfolio to cover supplies to Sefe.

But a new U.S. law offering hefty subsidies to local manufacturers of green technology has given the company pause for thought. That is roughly four times what the German government is offering, he said, with cheaper energy prices in the United States on top. The act introduces tax credits related to investment in green technology, plus tax breaks for consumers buying an electric vehicle or other green product made in North America. German carmakers and suppliers, for which the United States is a main export market, are among its biggest victims. "If we don't do anything, a lot will emerge in the United States," said Siemens Energy (ENR1n.DE) Chief Executive Christian Bruch.

☆ Thyssenkrupp Nucera's operating profit down on IPO prep costs
▼ + stars: | 2022-11-25 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, Nov 25 (Reuters) - Germany's Thyssenkrupp (TKAG.DE) on Friday said that Nucera, its joint venture with Italy's De Nora (DNR.MI), saw its operating profit fall by two-thirds, citing costs related to preparations for a potential stock market listing and growth investments. Earnings before interest and tax (EBIT) for the business, which Thyssenkrupp said might go public via an initial public offering (IPO) at some point, fell to 9 million euros ($9.4 million) in the 2021/22 fiscal year ending September. This was partly due to a "mid-single digit euro million amount of non-recurring IPO preparation costs", Thyssenkrupp said in presentation slides, published as part of a capital markets update a week after full-year results. The slides also showed that sales for the division increased by a fifth, to 383 million euros, for an EBIT margin of 2.4%, down from 8.4%. ($1 = 0.9622 euros)Reporting by Christoph Steitz, editing by Rachel More and Miranda MurrayOur Standards: The Thomson Reuters Trust Principles.

☆ German regulator: gas stocks below 40% on Feb. 1 would be critical
▼ + stars: | 2022-11-25 | by ( ) www.reuters.com time to read: 1 min

FRANKFURT, Nov 25 (Reuters) - Germany's energy regulator chief Klaus Mueller on Friday said a filling level below 40% of the country's underground storage caverns would be considered a critical indicator making mitigating measures necessary to ensure gas supply in winter. Currently, German inventories are 99% full, in excess of a Nov. 1 target for 95%, as Europe's leading economy has managed to offset a sizeable amount of delivery shortfalls after the near decline of Russian exports. "Tense we would say is between 40% and 55% by the first of February, and should we be below that, this indicator would jump to critical," said Mueller, speaking to reporters in a web-cast press conference. Reporting by Vera Eckert and Christoph Steitz, editing by Miranda MurrayOur Standards: The Thomson Reuters Trust Principles.

☆ Rewe drops ads with German soccer association over armbands row
▼ + stars: | 2022-11-22 | by ( ) www.reuters.com time to read: +4 min

BERLIN, Nov 22 (Reuters) - Major grocery chain Rewe has scrapped its advertising campaign with the German Football Association after soccer's global governing body cracked down on players wearing 'OneLove' armbands in support of diversity at the Qatar World Cup. Several soccer associations had said that their team captains would wear the armband in Qatar, where homosexuality is illegal. The German Football Association said on Tuesday associations backing the armband were faced with "extreme blackmail," and it had dropped plans for players to wear it because it was unfair for them to shoulder the consequences. Separately, Deutsche Telekom (DTEGn.DE) on Tuesday said it planned to talk with the German Football Association about the armbands controversy. The German Football Association (DFB) is the world's largest, with more than 7 million active members.

☆ Activist investor Cevian takes axe to Thyssenkrupp stake
▼ + stars: | 2022-11-22 | by ( Christoph Steitz | Svea Herbst-Bayliss | ) www.reuters.com time to read: +2 min

SummarySummary Companies Cevian cuts stake by more than 5.6%Thyssenkrupp turnaround failed to boost share priceCevian first disclosed stake in 2013FRANKFURT, Nov 22 (Reuters) - Activist fund Cevian has cut its stake in Thyssenkrupp (TKAG.DE) to less than 1%, it said on Tuesday, effectively ending its loss-making engagement with the German industrial group after years of restructuring that failed to boost its share price. Cevian, which first disclosed a stake in Thyssenkrupp in 2013, had nearly halved its stake to 7.9% a year ago after a far-reaching overhaul it had long demanded arrived too late. Shares in Thyssenkrupp fell 4.7% lower on the news, making them the second-biggest decliners in Germany's mid-cap index and valuing the stake Cevian has sold at more than 180 million euros ($185 million). Refinitiv news service IFR earlier reported that Cevian sold shares at 5.15-5.40 euros apiece in a process run by UBS, indicating the fund took a loss, given Thyssenkrupp stock traded around 17-19 euros when the fund disclosed holdings. The share sale also highlights Cevian's sobering track record in Germany, which includes a 26.67% stake in Bilfinger (GBFG.DE) that has fallen in value since the fund first disclosed a stake in 2011.

☆ Polish regulator to appeal after Gazprom Nord Stream 2 fine annulled
▼ + stars: | 2022-11-21 | by ( ) www.reuters.com time to read: +2 min

WARSAW, Nov 21 (Reuters) - UOKiK will appeal a ruling that annulled fines it imposed on Russia's Gazprom (GAZP.MM) and five other companies responsible for building the Nord Stream 2 pipeline, the Polish regulator said on Monday. UOKiK in 2020 fined Gazprom more than 29 billion zlotys ($6.33 billion) for building the Nord Stream 2 gas pipeline without Warsaw's approval. It also imposed a total fine of 234 million zloty spread across five other companies involved in financing the project. The other companies affected by the fines were Engie Energy (ENGIE.PA), Uniper (UN01.DE), OMV (OMVV.VI), Shell (SHEL.L) and Wintershall. Poland was a staunch opponent of the Nord Stream 2 project because it feared Russia could use energy supplies to exert influence over European countries.

FRANKFURT/HAMBURG, Nov 18 (Reuters) - German carmaker Volkswagen (VOWG_p.DE) is holding discussions with investors to join its battery division ahead of a possible partial initial public offering (IPO) of the subsidiary, two people familiar with the matter told Reuters. The idea is to bring in investors pre-IPO so Volkswagen can gauge how the division - named PowerCo - might be valued in a potential flotation, the sources said, adding that Volkswagen is working with advisers on a potential deal structure. Volkswagen has set aside 20 billion euros ($21 billion) for investment in its battery cell business, with the PowerCo unit managing its battery production and research from mining to recycling and projects including energy storage systems. Former Volkswagen CEO Herbert Diess floated the idea of a listing in May last year as a means of funding the carmaker's battery expansion plans. Volkswagen's US charging station network Electrify America, in which Siemens (SIEGn.DE) has invested a low three-digit million amount, could serve as a model for investor participation, the second source said.

The dividend proposal of 0.15 euros is on par with the company's last shareholder payout for the 2017/18 fiscal year, but lower than an estimate of 0.19 euros on Refinitiv. The submarines-to-car-parts firm still gave a muted outlook for the current fiscal year ending in September 2023, saying it expected sales and profits to fall as prices drop again. Thyssenkrupp shares were indicated to open flat in pre-market trade, with one trader saying the outlook was "too cautious for shares to open higher". Refinitiv estimates show 2023 sales are expected to decline by 11% to 36.5 billion euros. Thyssenkrupp said that, apart from falling prices, higher energy costs were also a key driver of the expected decline.

☆ Thyssenkrupp proposes first dividend in four years
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, Nov 17 (Reuters) - Thyssenkrupp (TKAG.DE) on Thursday said it would propose a dividend of 0.15 euros per share for the past financial year, which would mark the first payout in four years, on the back of strong price increases for steel and materials. The submarines-to-car parts firm still gave a muted outlook for the current fiscal year ending September 2023, expecting sales and profits to fall significantly as prices are expected to come down again, it said. "No one can tell how big the challenges will be or how long they will last. According to Refinitiv estimates, 2023 sales are expected to decline by 11% to 36.5 billion euros. Thyssenkrupp said that the main drivers behind the expected decline were a normalisation of prices for steel and materials as well as higher energy costs.

Siemens Energy owns 67% in Siemens Gamesa and has launched a 4.05 billion euro bid, expected to run until Dec. 13, to buy the rest in an attempt to better integrate the division and fix quality issues at a next-generation turbine model. "In a challenging year we managed to again deliver solid results in our Gas and Power business, while Siemens Gamesa did not meet expectations," Siemens Energy Chief Executive Christian Bruch said in a statement. "The integration of Siemens Gamesa will help to improve profitability at our wind business and allow it to deliver to its full potential." Fourth-quarter sales were up 5.9% at 9.2 billion euros, the company said, higher than the 8.8 billion Refinitiv estimate. The company added that, at 97.4 billion euros, its order backlog had reached a new record.

☆ RWE posts 72% rise in 9-month profit on higher demand, strong trading
▼ + stars: | 2022-11-10 | by ( ) www.reuters.com time to read: +1 min

Companies Rwe Ag FollowFRANKFURT, Nov 10 (Reuters) - RWE (RWEG.DE) on Thursday posted a 72% increase in core profits for the first nine months, boosted by higher demand and prices for power across Europe as well as what it called an unusually strong commodity trading performance. Nine-month adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 4.1 billion euros ($4.14 billion), up from 2.4 billion, Germany's largest power producer said. In its commodity trading division, profits were up 59% due to improvements "with regard to almost all commodities and regions". The group confirmed its 2022 outlook, still expecting adjusted EBITDA of 5 billion to 5.5 billion euros and adjusted net profit of 2.1 billion to 2.6 billion euros. ($1 = 0.9968 euros)Reporting by Christoph Steitz, editing by Kirsti Knolle and Miranda MurrayOur Standards: The Thomson Reuters Trust Principles.

But there was also a wider question for the officials: could the energy companies' use of such complex instruments threaten financial stability? So the ECB has widened its scrutiny to examine potential domino effects, including on the banks which it supervises. read moreWhile ECB President Christine Lagarde said the ECB stood ready to provide liquidity to banks, she said it would not do the same for energy firms. "Energy companies pose specific risks not only to financial stability. Reuters GraphicsRating agency Moody's, meanwhile, said that energy companies did not provide enough information about their derivatives.

Apart from generating and selling electricity, RWE also operates a large desk that trades in electricity, gas and CO2 certificates as well as other commodities, which can lead to bumper profits in times of significant price swings. "We have a very fundamental understanding of how markets work," Chief Financial Officer Michael Mueller told reporters on Thursday. Stifel Research, keeping a "buy" rating on RWE shares, said trading results were driven by so-called contango, where the futures price of a commodity is higher than spot levels. Nine-month adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 4.1 billion euros ($4.1 billion), up from 2.4 billion a year earlier. Apart from the strong performance in trading, where profits were up 59%, results also benefited from higher electricity wholesale prices for gas and biomass, Mueller said.

☆ Germany's Bosch partners with IBM in quantum computing
▼ + stars: | 2022-11-09 | by ( ) www.reuters.com time to read: +1 min

[1/2] The logo of Bosch is seen at an office building in Kyiv, Ukraine July 6, 2020. REUTERS/Valentyn OgirenkoFRANKFURT, Nov 9 (Reuters) - Germany's Bosch (ROBG.UL) is partnering with IBM in the field of quantum computing, hoping to use simulation technology to find surrogates for precious metals and rare earths in carbon-neutral powertrains within the next decade. "We share our experience in simulating materials for very specific application areas with IBM, and in return we gain deeper insights into the power and applicability of quantum computing including hardware," Bosch Chief Executive Stefan Hartung said. Overall, Bosch is investing 10 billion euros ($10 billion) in digitalisation and connectivity by 2025, with new technologies focused on sustainability and mobility accounting for two-thirds. ($1 = 0.9927 euros)Reporting by Christoph Steitz; Editing by Jan HarveyOur Standards: The Thomson Reuters Trust Principles.

☆ Germany's E.ON almost fully cuts value of Nord Stream 1 stake
▼ + stars: | 2022-11-09 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, Nov 9 (Reuters) - E.ON, Europe's biggest operator of energy networks, on Wednesday said it had almost fully cut the value of its stake in Nord Stream 1, reflecting damage to the pipeline that has made the asset inoperable and whose cause is yet to be determined. "Among the reasons for this are greater uncertainty amid the current situation and, since September 26, damage to both of Nord Stream 1's pipelines whose cause is as yet unclarified," the company said. Nord Stream 1 and Nord Stream 2 were damaged in September, and the gas transport infrastructure has been a focal point in the wider row between the West and Moscow. Adjusted net profit was also down 3% at 2.1 billion euros. The company still stuck to its 2022 outlook, expecting adjusted EBITDA of 7.6 billion to 7.8 billion euros and an adjusted net income of 2.3 billion to 2.5 billion euros.

☆ Germany earmarks $83 billion for gas, power price cap in 2023
▼ + stars: | 2022-11-06 | by ( ) www.reuters.com time to read: 1 min

BERLIN, Nov 6 (Reuters) - Germany will spend 83.3 billion euros ($83 billion), or 42% of a major protection scheme launched last month, to finance a cap on gas and power prices in 2023 in a bid to protect Europe's top economy, according to a draft proposal seen by Reuters. The figures provide a more granular breakdown of the 200 billion euro shield the German government has drawn up via its economic stabilisation fund to ease the burden on households and industry in the wake of rising energy costs. ($1 = 1.0040 euros)Reporting by Holger Hansen; Writing by Christoph Steitz; editing by David EvansOur Standards: The Thomson Reuters Trust Principles.

☆ German pensions could rise by up to 4.2% in 2023 - proposal
▼ + stars: | 2022-11-05 | by ( ) www.reuters.com time to read: 1 min

BERLIN, Nov 5 (Reuters) - Germany's more than 20 million pensioners will likely see their state benefit rise by up to 4.2% from July 2023, according to a governemt proposal seen by Reuters, lower than the expected inflation rate of 7.0%. The state pension in western Germany will rise by 3.5%, while in former East Germany it will increase by 4.2% according to the draft, as the government continues to narrow the gap between the two regions. The final decision on pension increases will depend on wage growth data released in early 2023. Reporting by Holger Hansen; Writing by Christoph Steitz; Editing by Andrew HeavensOur Standards: The Thomson Reuters Trust Principles.

☆ Germany, other EU members plan to expand Iran sanctions -Der Spiegel
▼ + stars: | 2022-11-05 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, Nov 5 (Reuters) - Germany and eight other EU member states are planning to expand sanctions on Iran to include individuals and organisations linked to violence against protesters in the Islamic Republic, magazine Der Spiegel reported, without disclosing its sources. A package containing 31 proposals was introduced in Brussels on Wednesday targeting individuals and institutions in the security sector as well as companies responsible for suppression in Iran, the magazine reported. Measures include the freezing of assets and travel bans, the magazine said, adding the package had a good chance of being approved by EU foreign ministers at their next meeting on Nov. 14. Ties between the Islamic Republic and the West are increasingly strained as Iranians keep up anti-government protests. Reporting by Christoph Steitz and Joern Poltz; Editing by Toby ChopraOur Standards: The Thomson Reuters Trust Principles.

☆ Xi opposing nuclear weapons in Ukraine was reason enough to visit China, Scholz says
▼ + stars: | 2022-11-05 | by ( ) www.reuters.com time to read: +1 min

BERLIN/FRANKFURT Nov 5 (Reuters) - German Chancellor Olaf Scholz, who was heavily criticised for a trip to Beijing this week, said on Saturday his and President Xi Jinping's joint statement opposing the use of nuclear weapons in Ukraine had been reason enough to travel there. Scholz's comments come a day after his visit to the world's second-biggest economy alongside key German corporate CEOs, the first by a G7 nation since the COVID-19 pandemic. "Because the Chinese government, the President and I were able to declare that no nuclear weapons should be used in this war, that alone made the whole trip worthwhile," Scholz said during an event of his Social Democratic party. Xi, who secured a third leadership term two weeks ago, agreed that both leaders "jointly oppose the use or threat of use of nuclear weapons" over Ukraine, but refrained from criticising Russia or calling on Moscow to withdraw its troops. And that means diversifying for all the countries we trade with, especially, of course, a country that is so big and has such a large share of the world economy," Scholz said.

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