DGAP-News: E.ON SE / Key word(s): Interim Report
E.ON SE: E.ON's transformation making progress
11.05.2016 / 07:30
The issuer is solely responsible for the content of this announcement.
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E.ON's transformation making progress
- EBITDA and underlying net income surpass prior-year figures owing to
one-off effects
- Economic net debt reduced by EUR1.1 billion because of seasonal factors
- Adjusted forecast for full-year 2016 EBITDA and underlying net income
affirmed
E.ON's first-quarter results were in line with expectations. EBITDA
increased from EUR2.8 billion to EUR3.1 billion. Underlying net income also
rose by EUR300 million to EUR1.3 billion. The earnings improvement is
attributable to a nonrecurring positive effect resulting from the agreement
with Gazprom to adjust the terms of long-term gas supply contracts. Without
this effect, E.ON's earnings would have been slightly below the figure from
the first quarter of the prior year.
"Our first-quarter results indicate that parts of our traditional operating
business remain under pressure. That's why it's all the more important that
since the start of the year E.ON's transformation has moved forward
according to plan. We presented E.ON and Uniper's strategy and financial
plan to the capital market at the end of April in London. The course we've
set was met with considerable approval. At our Annual Shareholders Meeting
on June 8, we intend to convince our owners that the planned spinoff will
give E.ON and Uniper better prospects for the future than they would have
under our old setup. I'm very confident that we'll succeed, paving the way
for Uniper's public listing in the second half of 2016," said Michal Sen,
E.ON SE's Chief Financial Officer, on the company's results for the first
three months of the new financial year.
Financial discipline called for
Sen emphasized that 2016 would mark a new beginning and be a transitional
year: "The dislocations in our market environment and the need to provide
Uniper with a solid capital structure will leave their marks on the new
E.ON's balance sheet. 2016 is a year of transition and marks a new start.
In the medium term we will focus on our core business activities, i.e.
energy networks, customer solutions and renewable energies. These stable
sources of income, a sound financial structure, stringent resource
allocation, steadfast customer orientation and superior performance across
all businesses will lay the foundation for us to position ourselves in the
new energy world."
Gazprom effect dominates first-quarter results
In the first quarter of 2016 E.ON recorded EBITDA, which it adjusts for
extraordinary effects, of EUR3.1 billion, about EUR200 million more than
the prior-year figure. Earnings were higher primarily in the Global
Commodities segment because Uniper and Gazprom agreed to new terms for
long-term gas supply contracts, enabling E.ON to release provisions. This
alone yielded roughly EUR400 million in earnings. E.ON also achieved
operating improvements in its gas-trading business. Together, these effects
enabled the Global Commodities segment to increase its earnings by EUR600
million. E.ON's newly commissioned assets-Amrumbank West and Humber Gateway
offshore wind farms and unit 3 at Maasvlakte power station-also had a
positive impact on earnings.
These positive factors were partially offset by lower market prices, the
decommissioning of generating capacity, the divestment of the E&P business
in the Norwegian North Sea and generating capacity in Spain and Italy, and
a power-plant outage and the resulting earnings decline in Russia.
Thanks primarily to the increase in EBITDA, E.ON's underlying net income
improved by EUR300 million year on year, from EUR1 billion to EUR1.3
billion. Seasonally strong cash flow helped the company reduce its economic
net debt by EUR1.1 billion to EUR26.6 billion.
Updated forecast affirmed
After the first quarter E.ON stands by its updated forecast for full-year
2016. E.ON had adjusted this forecast in March after the agreement with
Gazprom. E.ON expects its full-year 2016 EBITDA to be between EUR6.4 and
EUR6.9 billion and its underlying net income to be between EUR1.5 and
EUR1.9 billion.
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 SE 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.
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11.05.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: E.ON SE
Brüsseler Platz 1
45131 Essen
Germany
Phone: +49 (0)201-184 00
E-mail: investorrelations@eon.com
Internet: www.eon.com
ISIN: DE000ENAG999
WKN: ENAG99
Indices: DAX, EURO STOXX 50
Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime
Standard), Hamburg, Hanover, Munich, Stuttgart;
Terminbörse EUREX; Mailand
End of News DGAP News Service
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462307 11.05.2016
DGAP-News: E.ON SE: E.ON's transformation making progress
| Quelle: EQS Group AG