RWE To Sell Egyptian Assets To Face Nuclear Hit

CFW View: With Germany's nuclear exit weighing heavily on RWE 's consolidated financial statement and share price performance, the energy company has announced various new initiatives to bolster its finances and mitigate its exposure to nuclear. We believe however that the company's short-to-medium term outlook remains difficult. A proposed sale of the Egyptian assets of RWE's oil and gas exploration unit RWE-DEA appears sound, as it would raise cash for the group without undermining RWE-DEA's otherwise solid results. Yet, austerity measures in Europe could jeopardise the company's new renewable projects and the ongoing eurozone debt crisis create further downside risks for Europe-focused RWE.

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