RWE sees no reason to change the ailing utility's strategy, its chief executive said on Wednesday, despite a massive plunge in the group's shares in recent weeks. Shares in RWE have fallen more than 40 percent since mid-August, hit by concerns over billing issues at its British unit npower as well as the pending outcome of a review of the provisions set aside for the shutdown of its nuclear plants.
"Things are going in the right direction. We just have to make sure (our strategy) isn't overshadowed by political decisions," CEO Peter Terium told reporters on the sidelines of a conference. Terium called the share price decline "absolutely dramatic", but added that a price of 10.265 euros apiece did not reflect the true value of the utility, Germany's largest power producer. "The market is right but unfortunately it sometimes exaggerates," he said, adding shareholders were reading too much into current risks. The Ministry has commissioned a stress test of the provisions, results of which are expected later this autumn.