DGAP-News: E.ON AG / Key word(s): Interim Report
E.ON AG: E.ON continues consolidation
09.11.2011 / 07:30
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E.ON continues consolidation
Adjusted EBITDA of EUR6.6 billion down by 39 percent year on year, adjusted
net income of EUR1.6 billion down by 64 percent
System expansion of growth businesses: renewables, gas production, and
power generation in Russia
Full-year 2011 forecast confirmed: adjusted EBITDA expected to be between
EUR9.1 and EUR9.8 billion, adjusted net income between EUR2.1 and EUR2.6
billion
Planned target dividend for 2011 financial year remains at EUR1 per share
E.ON's nine-month business performance was in line with its expectations.
Nine-month sales were up by 21 percent year on year to roughly EUR78
billion, primarily because of an increase in external sales at its trading
business. By contrast, E.ON's adjusted EBITDA was down by 39 percent to
about EUR6.6 billion. The decline had three main drivers. First, the early
shutdown of nuclear power stations in Germany and Germany's nuclear-fuel
tax reduced earnings by EUR2.3 billion. Second, continued margin pressure
reduced earnings in E.ON's gas wholesale business by about EUR0.8 billion.
Third, higher procurement costs in the retail business and the sale of
Central Networks reduced earnings in the United Kingdom by about EUR0.5
billion.
E.ON's renewables, upstream gas, and Russian power businesses again posted
higher earnings. The Renewables unit grew its earnings by 19 percent to
around EUR1.1 billion, primarily because of an increase in installed wind
capacity. Earnings at E.ON's upstream gas business rose by 22 percent to
roughly EUR0.6 billion, mainly due to higher market prices. E.ON's Russia
unit grew its earnings by 39 percent to about EUR0.4 billion, owing
primarily to an increase in generating capacity and an improved power
margin.
E.ON's nine-month adjusted net income of roughly EUR1.6 billion was 64
percent below the prior-year figure, mainly because of the decline in
adjusted EBITDA. Amortization was at the prior-year level, and E.ON
recorded a significant improvement in adjusted interest expense (net) due
to the reduction in its net debt. E.ON's nine-month investments in
property, plant, and equipment, intangible assets, and shareholdings
amounted to roughly EUR4.1 billion, about EUR1.4 billion below the
prior-year figure.
At EUR4.5 billion, E.ON's cash provided by operating activities of
continuing operations was considerably below the prior-year figure of
EUR9.2 billion. The main reasons for the decline were cash-effective items
in conjunction with the decrease in adjusted EBITDA, a non-recurring
adverse effect relating to the refunding of pension assets in the United
Kingdom, and overall negative working-capital effects. The main negative
factors for the latter item were lower subsidy payments for new wind farms
in the United States due to a decrease in new capacity commissioned and
changes in working capital at Trading and Gas.
The E.ON Group's economic net debt stood at about EUR34.5 billion at
September 30, 2011, its net financial position at about -EUR17 billion.
Both are largely unchanged from the half-year figures but significantly
improved from the prior-year figures. The main driver has been the resolute
implementation of E.ON's divestment program. Since November 2010, E.ON has
divested businesses worth more than EUR9 billion.
The forecast for full-year 2011 is unchanged. E.ON expects its adjusted
EBITDA to be between EUR9.1 and EUR9.8 billion and its adjusted net income
to be between EUR2.1 and EUR2.6 billion. As a result, it also still plans
to pay out a dividend of EUR1 per share for the 2011 financial year.
Systematic expansion of growth businesses
On the operating side, E.ON has achieved important milestones in the
expansion of its growth businesses in recent months. In renewables, it has
taken E.ON just two years to more than double its installed wind-power
capacity in the United States to more than 2Â gigawatts. E.ON is now one of
the top five wind-power producers in the United States. By commissioning a
combined-cycle gas turbine (CCGT) at Yaiva power station in Russia E.ON
added another technologically advanced 400-megawatt unit to its generation
portfolio in this fast-growing market, where it now has approximately 10.5
gigawatts of installed capacity. Ulrich Hartmann CCGT, commissioned at
Irsching power station in Germany, sets new international standards for
fuel-efficient, climate-friendly power generation. And a gas discovery in
the U.K. North Sea represents another step in the successful development of
E.ON's growing upstream gas business.
Efficiency improvements on schedule
E.ON is on schedule with the implementation of its efficiency-enhancement
program called E.ON 2.0. To ensure its ability to take strategic action
over the medium and long term and to shield the company from the
difficult-to-quantify risks of international economic and financial
developments, E.ON is systematically enhancing its efficiency. By 2015 at
the latest, E.ON intends to reduce its controllable costs from presently
about EUR11 billion to EUR9.5 billion. It is currently working on detailed
plans for specific initiatives, which include streamlining Group
Management, reorganizing its business in Germany, and combining its gas and
trading units in a single company. These plans will be presented to the
E.ON AG Supervisory Board in December.
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This press release may contain forward-looking statements based on current
assumptions and forecasts made by E.ON Group management and other
information currently available to E.ON. Various known and unknown risks,
uncertainties and other factors could lead to material differences between
the actual future results, financial situation, development or performance
of the company and the estimates given here. E.ON AG does not intend, and
does not assume any liability whatsoever, to update these forward-looking
statements or to conform them to future events or developments.
End of Corporate News
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Language: English
Company: E.ON AG
E.ON-Platz 1
40479 Düsseldorf
Germany
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
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX; Mailand
End of News DGAP News-Service
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145353 09.11.2011
DGAP-News: E.ON AG: E.ON continues consolidation
| Source: EQS Group AG