The International Energy Agency (IEA) recently launched the “Medium Term Coal Market Report”, which outlines market trends and projections through to 2018. The report shows that coal remains the fastest growing fossil fuel and is projected to remain that way for at least another six years, with the use of coal to rise by 2.3% per year on average until 2018. The majority of this increase can be attributed to China which has been responsible for the most growth over the past decade.
An analysis of the current business situation of each division by the Executive Board of Bilfinger SE in the third quarter of 2014 has shown that a fundamental reassessment of the situation is required in the Power business segment due to the difficult market environment. Significantly worsened demand – particularly in Germany and other European countries – has led not only to reduced earnings expectations for 2014 but also to a significant adjustment to earnings forecasts for the years to follow. This triggered an impairment test of goodwill in the divisions of the Power business segment and resulted in an impairment loss of €148 million.