Plus   Neg

E.ON Posts Weak H1 Adj. Earnings; Cuts FY20 Adj. Earnings View; Backs FY22 Forecast - Quick Facts

German electric utility E.ON AG (EONGY.PK) reported Monday that its first-half adjusted net income decreased to 933 million euros from 1.05 billion euros in the prior year.

Adjusted EBIT for the first six months declined to roughly 2.2 billion euros from 2.3 billion euros last year.

The company noted that about 150 million euros or half of the 300 million euros in total adverse earnings from COVID-19 anticipated in 2020, are attributable to the company's regulated network business. Due to regulatory mechanisms in the various markets, most of these effects can be recovered in the years 2022 to 2024.

Looking ahead, E.ON revised its forecast for full-year 2020 to reflect COVID-19's technical earnings effects. The company noted that COVID-19's total unrecoverable adverse impact in 2020 is limited to only about 2 percent of EBITDA.

The company now expects adjusted EBIT for the 2020 financial year to be between 3.6 billion euros and 3.8 billion euros, and its adjusted net income to be between 1.5 billion euros and 1.7 billion euros.

Previously, E.ON had announced forecast ranges of 3.9 billion euros to 4.1 billion euros for adjusted EBIT and 1.7 billion euros to 1.9 billion euros for adjusted net income.

Further, E.ON unconditionally reaffirmed the earnings ambitions for 2022 and also reaffirmed its announced intention of increasing its dividend payout by up to 5 percent annually through the dividend for the 2022 financial year.

Further, the company completed innogy takeover after squeeze-out, and integration is proceeding according to plan.

From today's perspective, E.ON also expects to deliver the planned synergies from the innogy transaction of roughly 740 million euros from 2022 onward and roughly 780 million euros in 2024. It plans for the integration to result in a total of up to 5,000 redundancies.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Hongkong Sun Rise Trading Ltd. has recalled about 151,400 units of Kobalt Cordless Electric chainsaws and about 106,520 units of Kobalt Cordless Electric pole saws for possible laceration hazard, according to two separate statements issued by the U.S. Consumer Product Safety Commission. These include 1,400 chainsaws and 120 pole saws sold in Canada. Branded food company Hormel Foods Corp. (HRL) announced Friday that its Hormel Black Label Breakfast Food Truck will hit the road with free sample event of the popular brand's new Hormel Black Label Oven-Baked Egg Bites. The samples come in three variants - with Bacon, with Chorizo and with Bacon and... United Airlines has rolled out an interactive online "Map Search" feature for its customers in collaboration with search giant Google. The new feature is powered by Google Flight Search Enterprise Technology. United is claimed to be the first airline in the U.S. to add this feature. The new feature, available on United.com, allows customers to easily search, compare and purchase flight tickets.
Follow RTT