RWE CEO Defends Dividend Suspension ahead of Renewable,Grid IPO

Peter Terium, the boss of Germany's largest power producer RWE, on Wednesday said a controversial move to scrap the group's annual dividend had been necessary, warning that the utility was facing a downgrade by credit agencies soon.

 

RWE in February surprised investors when it proposed to suspend its dividend for ordinary shares for the first time in at least six decades, a direct response to an ongoing decline in wholesale power prices that has badly pummelled its shares.

 

"The fact that the supervisory board unanimously approved this proposal shows that this decision, while difficult, was necessary," Terium said in a speech at the group's annual general meeting.