Energy firm E.ON’s profits up 26% to £296m

E.ON has revealed its profits last year rose 26% as a result of the prolonged cold snap at the beginning of the year. Profits increased from £235 million in 2012 […]

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By Priyanka Shrestha

E.ON has revealed its profits last year rose 26% as a result of the prolonged cold snap at the beginning of the year.

Profits increased from £235 million in 2012 to £296 million in 2013 which follows an 8.7% increase in customers’ bills in January last year, blaming higher wholesale prices. The Big Six firm raised prices again this year by an average of 3.7%.

E.ON’s pre-tax profit margin almost doubled, from 2.3% in 2012 to 4% last year and saw its sales turnover rise from £7.6 billion to £8 billion in 2013. Investment also rose from £64 million to £66 million.

Chief Executive Tony Cocker said: “A prolonged period of cold weather at the beginning of 2013 coupled with a continued drive to keep down the costs we control have contributed to an increase in the money we earned along with a slight increase in our investment levels during the same period.”

Profits from the power supplier’s UK power plant and oil and gas arm however fell by 34% to £388 million as its gas-fired power stations were “barely profitable” and was also affected by the closure of its Kingsnorth coal-fired station at the end of 2012.

Mr Cocker added: “Often the need for new development dominates the headlines and whilst we continue to play our part in bringing new power generation online, the capital intensive nature of running existing plants should not and must not be ignored.”