German utility E.ON sees strong Q1 after Innogy acquisition

Source: Xinhua | 2020-05-13

Sales of E.ON almost doubled year-on-year from 9.1 billion euros to 17.7 billion euros (19.2 billion U.S. dollars) in the first quarter (Q1) of 2020, the German energy company announced on Tuesday.

Adjusted operating profit (EBIT) of E.ON went up by 24 percent to just under 1.5 billion euros in Q1, 2020, according to the German utility. Adjusted net income increased by 6 percent to 691 million euros compared to the prior-year level.

In the first quarter, E.ON benefited from the takeover of the renewable energy company Innogy which was previously held by competitor RWE, according to the German company.

E.ON chief executive officer (CEO) Johannes Teyssen explained that the historically warm and dry first quarter had a tangible adverse impact on the company's earnings, especially in gas and heat sales in Germany, Sweden, the Netherlands and the United Kingdom.

The German utility E.ON announced additional investments of 500 million euros in climate-friendly upgrades of energy infrastructure.

"We want to do our part to spur economic recovery after the crisis," said Teyssen. "We see interesting and promising projects with our customers in areas like the digital economy and eMobility."

For 2020, E.ON is expecting adjusted EBIT to be between 3.9 billion and 4.1 billion euros and its adjusted net income to be between 1.7 billion and 1.9 billion euros.

However, this forecast would "not include risks from the COVID-19 pandemic that may materialize as the year moves forward but that as of today cannot be assessed with sufficient certainty," according to E.ON.