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21st Nov 2017 Login  
E.ON stays on course in difficult environment As anticipated,
by Stuart at 2013-11-13 09:57:25 (News)
EBITDA and underlying net income below prior-year figures
Renewables and distributed-energy solutions expanded

Economic net debt reduced further
Outlook confirmed and forecast range narrowed: full-year EBITDA expected to be between Euro 9.2 and Euro 9.3 billion, underlying net income between Euro 2.2 and Euro 2.4 billion

After the first nine months of 2013 E.ONís business performance continues to be in line with its expectations. E.ONís sales of Euro 89.3 billion were 5 below the prior-year level; its EBITDA declined by about Euro 1.7 billion to Euro 7.1 billion. Cost savings delivered by the companyís E.ON 2.0 program and higher earnings at its Exploration & Production segments had a positive impact on earnings but were more than offset by the absence of earnings streams from divested companies and the effect of the current market situation in fossil-fueled power generation. E.ONís underlying net income declined by Euro 2.1 billion, or 53 percent, to Euro 1.9 billion, primarily because its EBITDA was lower and its income taxes were higher.

In the third quarter E.ON continued to move forward with the implementation of its strategy. E.ONís renewables business inaugurated KŚrehamn wind farm in the Baltic Sea after just 18 months of construction, and work on Amrumbank West offshore wind farm has begun. The companyís Renewables segment again posted higher EBITDA. ďRenewables are a mainstay of our earnings,Ē E.ON CEO Johannes Teyssen said. ďOur technologically advanced wind fleet is one of the most profitable in the industry and, with an availability factor of 98 percent, is a reliable component of Europeís energy supply.Ē E.ON is also taking new approaches to integrate renewables into the overall energy system. In Falkenhagen in eastern Germany E.ON commissioned a plant that converts renewable-source electricity into hydrogen which is injected into the gas pipeline system.

E.ONís distributed-generation and energy-efficiency business is also making progress. This business now generates nearly Euro1 billion in sales in Germany alone. 35 power plants entered serviced in the first half of 2013; 70 more are already under construction. E.ON has just under 800 megawatt of installed distributed generating capacity, making us one of the top players in the German market. The company also operates a substantial distributed-energy business in Scandinavia, the Netherlands, and the United Kingdom. To broaden its knowledge base in this business, E.ON has acquired Matrix, the U.K. market leader in energy management and energy efficiency for commercial buildings.

In the third quarter E.ON again took important steps to further internationalize its business. Enerjisa, E.ONís joint venture with Sabanci in Turkeyís rapidly growing energy market, successfully concluded the acquisition of Ayedaş and Toroslar regional distribution companies and now provides energy to 9 million customers, more than in any other E.ON market.

E.ON also made progress on its disposal program and on further reducing its long-term debt. In the third quarter the company concluded the disposal of its Hungarian gas business, achieving a very satisfying result. E.ON has now generated a total Euro 18.9 billion from disposals.

The E.ON Groupís nine-month investments totaled roughly Euro 6.3 billion. Its operating cash flow of Euro 5.3 billion was Euro 1.5 billion below the prior-year level. Compared with the figure recorded at December 31, 2012 (-Euro 35.9 billion), E.ONís economic net debt declined by Euro 2.8 billion to -Euro 33.1 billion. Significant proceeds from divestments constituted the main reason for the improvement.

E.ON confirms its forecast for full-year 2013 EBITDA and narrows the range to Euro 9.2 to Euro 9.3 billion. This forecast factors in the loss of earnings streams through asset sales under the companyís ongoing divestment program. E.ON expects its 2013 underlying net income to be between Euro 2.2 and Euro 2.4 billion.
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Stuart

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