RWE shares reach highest price in seven years

The share price of German energy company RWE has reached the highest level in seven years, news agency dpa reports in an article carried by website Focus Online. RWE's share price climbed 1.7 percent to 34.12 euros, marking an increase of about one quarter since the beginning of the year. According to the article, the increase is partly due to investors following a "risk-off" strategy, in which "defensive" sectors like energy or real estate are chosen as safe havens. Share prices of German energy company E.ON rose by 0.6 percent to reach the highest level since 2015. RWE's decision to shift its production focus to renewable energy sources is expected to further boost the company's profits and lead to a higher evaluation, the article says.

RWE is Germany's largest energy company and also the country's biggest coal plant operator. But last year, the company pledged to become carbon neutral by 2040, following its takeover of the renewable portfolio of its erstwhile rival E.ON. The company is set to receive up to 2.6 billion euros in compensation payments for taking its lignite power plants offline in the context of Germany's coal exit. That has bolstered investor confidence in the company, which for a long time grappled with a loss in value over its failure to embrace the opportunities offered by Germany's renewable energy policies.