High energy prices suppress E.ON’s profits

The energy giant posted a 15% drop in first-quarter core-profit

Big Zero Report 2022

E.ON has said higher energy prices led to lower earnings in the first quarter of the year.

Presenting its financial results, the company said its adjusted EBITDA of €2.1 billion (£1.7bn) was 15%, about €360 million (£307m), below the prior-year figure.

The utility added that its adjusted EBITDA in the Customer Solutions segment declined by €330 million (£281m) year-on-year to €414 million (£353m).

That was attributed to higher procurement costs for energy sales.

However, the company expects that this decline will be recouped in the coming months.

E.ON Chief Financial Officer Marc Spieker said: “Despite the challenges of the first quarter, we’re on course to achieve our earnings targets for the 2022 financial year.

“The current distortions on energy markets will force Europe to shift even faster from fossil to renewable energy sources in order to end its dependence on Russian gas.

“Strong energy distribution networks will play a key role. In addition, we’re currently experiencing a substantial increase in the demand for sustainable embedded customer solutions.”

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