E.ON Q2 Profit Surges, Lifts FY21 View

eon aug11 lt

German electric utility E.ON SE reported Wednesday significantly higher profit in its second quarter, with strong sales primarily driven by cooler weather and the agreement on output rights for nuclear power stations.

Further, E.ON has increased its outlook for the 2021 financial year, in view of the repayment of expenditures for residual power output rights.

The company now expects to achieve an adjusted net income of 2.2 billion euros to 2.4 billion euros, higher than previously expected 1.7 to 1.9 billion euros, and up from last year's 1.6 billion euros.

Adjusted EBIT is now expected to be 4.4 billion euros to 4.6 billion euros for fiscal 2021, up from 3.8 to 4.0 billion euros expected earlier. Last year's adjusted EBIT was 3.8 billion euros.

The forecast for adjusted EBIT has been increased by around 600 million euros for the current year due to the agreement between the German federal government and the operators of nuclear power plants on residual power output rights.

Adjusted EBITDA is now expected to be 7.6 to 7.8 billion euros, up from 7.2 to 7.4 billion euros expected earlier, and up from 6.9 billion euros recorded last year.

The company further affirmed its medium-term targets including earnings plan through 2023, synergies, and dividend policy.

For the second quarter, net income attributable to shareholders of E.ON was 1.75 billion euros, higher than last year's 599 million euros.

For the second quarter, adjusted net income was 956 million euros, compared to prior year's 272 million euros.

EBIT surged to 2.33 billion euros from last year's 987 million euros. Adjusted EBIT went up 107 percent to 1.51 billion euros from 729 million euros a year ago. Adjusted EBIT in core businesses was 896 million euros, up 34 percent from last year's 671 billion euros.

Adjusted EBIT at the Customer Solutions segment rose 40 percent, and the growth was 19 percent in Energy Networks.

Adjusted EBITDA climbed to 2.32 billion euros from prior year's 1.48 billion euros.

In the second quarter, sales grew 14 percent to 14.64 billion euros from 12.84 billion euros last year, with growth in all segments.

In Germany, E.ON shares were trading at 10.66 euros, up 1.29 percent.

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