E.ON sees first quarter earnings up 24% on last year

The energy supplier’s pre-tax profits rose to €1.3 billion

The Big Zero report

Big Six supplier E.ON has delivered a strong first quarter performance, seeing earnings before tax rise by 24% to €1.3 billion (£1.14bn).

The firm’s latest financial statement also shows it saw net income rise 38% to €727 million (£639m).

The company expects its full-year earnings to total up to €3 billion (£2.6bn) and its full-year net income to potentially reach €1.5 billion (£1.3bn).

Its Customer Solutions unit contributed to the business’ strong performance as its adjusted earnings surpassed the weak prior-year figure by 23%, rising to €392 million (£344m).

The Energy Networks segment generated more than half of E.ON’s earnings despite dropping 5% year-on-year.

The Renewables segment saw higher installed capacity due to the addition of new wind farms but sales prices for its power output declined. Together these factors resulted in earnings rising by about 7% to €171 million (£150m).

E.ON’s Chief Financial Officer Marc Spieker said: “The first quarter seamlessly continued our positive performance of last year. Our operating business is strong. We achieved significant growth by adding more than 50,000 customers in Germany.

“This is a fine achievement by the colleagues at our sales business and demonstrates that customers trust us. All the key figures and developments for the entire group are in line with our plan and we therefore affirm our forecast for full-year 2018.”

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