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Germany's RWE to quit oil, gas production

Tuesday - 3/5/2013, 10:40am  ET

BERLIN (AP) -- German energy company RWE AG says it is has decided to abandon production of crude oil and natural gas and will consider options for selling its oil and gas division.

RWE said Tuesday that selling RWE Dea AG, the oil and gas exploration and production business, would remove pressure on future capital spending and improve the company's financial situation. It didn't say when a sale might take place or name a price.

The management board's decision came as the company reported net earnings of EUR1.31 billion ($1.7 billion) for last year, down a bit more than a quarter from the previous year's EUR1.81 billion. Revenue was up 3 percent, to EUR53.23 billion from EUR51.69 billion.

RWE had net debt of EUR33 billion at the end of last year.

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