March 25, 2020 / 7:16 AM / in 3 months

E.ON has sold German nuclear power ahead at above market prices

FRANKFURT, March 25 (Reuters) - German utility E.ON said on Wednesday it had sold forward 53% of its nuclear power generation in 2021 and 23% of its 2021 output at prices well above the current wholesale market, raising earnings prospects from that segment.

The company has to date also sold some 80% of output in the current year from reactors at its Preussen Elektra unit, it showed in presentation slides on reporting 2019 financial results.

The 2019 nuclear production volume was sold at 33 euros ($35.69) per megawatt hour (MWh) and the share of 2020 production at 46 euros/MWh.

Hedge rates of forward production volumes are tracked by wholesale market traders and analysts to assess volumes tied up with counterparties and the value of future production.

As for 2021, the price achieved in forward sales was 47 euros and for 2022 it was 48 euros, the slides showed.

Over-the-counter prices for German round-the-clock power from all conventional energy sources to be delivered in 2021 closed at 34.9 euros/MWh on Tuesday, Refinitiv Eikon data showed, while delivery for 2022 closed at 38.2 euros .

Power curve prices have plummeted to near two-year lows, dragged down by fears of a contraction in economic growth due to the coronavirus slashing industry demand.

E.ON retained its Brokdorf, Grohnde and Isar 2 reactors after in a sector asset swap deal in which it transferred minority interests held by Preussen Elektra in the RWE-operated Emsland and Gundremmingen C plants.

Rivals RWE and Uniper also recently published hedge rates as part of their full-year earnings reports.

$1 = 0.9247 euros Reporting by Vera Eckert; editing by Jason Neely

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