Profits rise at German power firm

RWE chief Harry Roels will step down next year

Full-year profits at German utility RWE have jumped thanks to price increases and the sale of Thames Water.

Net income at rose 72.4% to 3.85bn euros ($5bn; £2.6bn) during 2006, up from 2.23bn euros last year.

Profits were buoyed by a 10% rise in German power prices and the £4.8bn sale of Thames Water to a consortium led by Australia's Macquarie Bank.

The results come days after RWE said chief executive Harry Roels would be stepping down in February next year.

Juergen Grossmann - famous for rescuing the heavily indebted Georgsmarienhuette steel firm in Lower Saxony - will replace Mr Roels.

Looking ahead, the group, which also has interests in gas, electricity and recycling, plans to continue with efforts to sell off its water divisions to concentrate on its power business.

To that end RWE - Germany's second largest utility firm - plans to spin off its American Water Works unit next year, and says it will buy back stock once it has.