E.ON AG / Interim Report/Quarter Results
11.05.2010 08:02
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* Adjusted EBIT up 20 percent year on year
* U.S. power and gas business divested
* 2010 forecast unchanged with adjusted EBIT expected up between 0 and 3
percent and adjusted net income at prior-year level
Düsseldorf-based energy company E.ON has started the 2010 financial year
extremely well. New CEO Johannes Teyssen, presenting his company's interim
results for the first time, announced that E.ON's first-quarter adjusted
EBIT was up 20 percent year on year to more than EUR3.7 billion. Sales of
about EUR26 billion were at the prior-year level. E.ON achieved
particularly significant earnings increases in the U.K., energy trading,
and its still fairly new renewables business. Nevertheless, in view of the
continuing financial and economic crisis and the anticipation of greater
volatility in earnings development in 2010 than in 2009, E.ON is remaining
conservative regarding the full year and stands by its cautiously
optimistic forecast. It expects 2010 adjusted EBIT to increase by between 0
and 3 percent and adjusted net income to be at the prior-year level.
The Central Europe market unit recorded adjusted EBIT of EUR1.638 billion,
just EUR13 million below the prior-year figure. A regulation-driven
increase in power and gas network charges, efficiency improvements, and the
commissioning of new generating units were the main positive factors, the
disposal of power capacity and the ultrahigh-voltage transmission system as
well as narrower margins in the gas business the main negative factors.
Pan-European Gas's adjusted EBIT was down by EUR111 million to EUR713
million. Lower earnings in the transport business and the absence of
earnings streams due to the disposal of Thüga were not offset by higher
earnings in E.ON's gas production business. First-quarter earnings in the
gas wholesale business were stable. Although sale volume was higher due to
the long winter, sales prices remained under pressure in a more intensely
competitive environment.
The U.K. market unit's adjusted EBIT increased significantly, rising by
EUR358 million to EUR433 million. This is primarily attributably to
improvements in the retail business and to a weather-driven increase in gas
sales volume. Nordic's adjusted EBIT increased slightly, by EUR11 million,
to EUR234 million. U.S. Midwest's adjusted EBIT of EUR129 million was just
EUR4 million below the prior-year figure.
In a volatile market, Energy Trading recorded an adjusted EBIT of EUR348
million compared with EUR107 million in the prior-year period. The
optimization reporting unit, whose main purpose is to limit risks and to
optimize the deployment of the E.ON Group's generation and production
assets, contributed EUR350 million. By contrast, the proprietary trading
reporting unit recorded a loss of EUR2 million.
Adjusted EBIT at the New Markets segment (which encompasses E.ON's
operations in Russia, Italy, Spain, and renewables) rose by 55 percent to
EUR246 million. Climate & Renewables in particular posted a considerably
higher adjusted EBIT, mainly due to the significant increase in its wind
power capacity. The Russia market unit benefited from ongoing market
liberalization.
Net income attributable to shareholders of E.ON AG of EUR2.3 billion and
corresponding earnings per share of EUR1.20 were both down by 7 percent
from the respective prior-year figures of EUR2.5 billion and EUR1.29.
E.ON's adjusted net income (which does not include effects like the marking
to market of derivatives, net book gains and losses on disposals, and
restructuring expenses) rose by 16 percent to just under EUR2.1 billion.
Cash provided by operating activities of more than EUR3.1 billion was about
8 percent above the prior-year figure.
Carsten Thomsen-Bendixen
T: +49-211-4579-544
Dr. Mirko Kahre
T: +49-211-4579-4170
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Language: English
Company: E.ON AG
E.ON-Platz 1
40479 Düsseldorf
Deutschland
Phone: +49 (0)211 4579-0
Fax: +49 (0)211 45 79-5 01
E-mail: investorrelations@eon.com
Internet: www.eon.com
ISIN: DE000ENAG999
WKN: ENAG99
Indices: DAX, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Düsseldorf, München, Hannover, Stuttgart, Hamburg;
Terminbörse EUREX; Foreign Exchange(s) Mailand
End of News DGAP News-Service
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DGAP-News: E.ON AG: E.ON has strong first quarter
| Source: EQS Group AG