Germany energy stocks soar on nuclear pull-out study

Shares in energy giants E.ON and RWE shot higher on the Frankfurt stock exchange on Monday after a government study suggested the two companies had sufficient financial buffers to cope with the shutdown of their nuclear power plants.

 By mid-afternoon, shares in RWE were showing a gain of 12.5 percent and E.ON shares were 6.4 percent higher.

 Investors appear to be relieved by the findings of a so-called "stress test" by the German economy ministry which showed that the country's four main power suppliers -- E.ON, RWE, EnBW and Vattenfall -- were financially robust enough to cover the cost of the country's pull-out from nuclear power by 2022.

 According to the in-depth audit, the provisions of 38.3 billion euros ($43.6 billion) that the companies have set aside to cover the closure and dismantling of their nuclear power stations and the cost of disposing of the waste was sufficient.

 "For us, that means the ministry will not ask the companies to set aside additional provisions," said Equinet analyst Michael Schaefer.

 In the wake of the nuclear disaster in Fukushima, Japan in 2011, the German government decided to phase out nuclear power by 2022.

 Eight of the country's 17 power plants are still currently in operation.

 The power utilities themselves expressed relief at the audit's findings.

 "Speculation of a possible need for additional provisions are unfounded," the four said in a joint statement.