12.03.2018
E.ON SE DE000ENAG999
DGAP-News: E.ON SE: Following solid 2017 results E.ON aims for focused growth during transaction phase of innogy acquisition
DGAP-News: E.ON SE / Key word(s): Final Results
E.ON SE: Following solid 2017 results E.ON aims for focused growth during
transaction phase of innogy acquisition
12.03.2018 / 19:16
The issuer is solely responsible for the content of this announcement.
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Following solid 2017 results E.ON aims for focused growth during transaction
phase of innogy acquisition
- Solid 2017 results create position of strength for planned acquisition of
innogy as part of extensive exchange of businesses with RWE
- Adjusted EBIT of EUR3.1 billion and adjusted net income of EUR1.4 billion
at the upper end of forecast range
- Economic net debt reduced more significantly than expected to EUR19.2
billion
- 2018 forecast: adjusted EBIT expected to be between EUR2.8 and EUR3
billion, adjusted net income between EUR1.3 and EUR1.5 billion
- Management to propose dividend of 30 cents per share for 2017 and 43 cents
for 2018, an increase of 40 percent for the transaction year
- E.ON's medium-term growth targets for the transaction phase: adjusted EBIT
to increase by an average of 3 to 4 percent annually through 2020, earnings
per share by an average of 5 to 10 percent
E.ON finished the 2017 financial year with very strong results. Adjusted
EBIT of EUR3.1 billion was at the upper end of the forecast range of EUR2.8
to EUR3.1 billion. Adjusted net income of EUR1.4 billion surpassed the
prior-year figure by 58 percent and was likewise at the upper end of the
forecast range of EUR1.2 to EUR1.45 billion. With an economic net debt of
just EUR19.2 billion at year-end 2017 E.ON has already achieved its debt
target.
"Our 2017 results demonstrate the success of our strategy so far. We put the
burdens of the past behind us faster than originally anticipated,
significantly strengthened our balance sheet, and can now enter the
transaction with RWE from a position of strength," E.ON CEO Johannes Teyssen
said. E.ON and RWE had previously announced an agreement under which E.ON
would acquire RWE's 76.8-percent stake in innogy as part of an extensive
exchange of businesses .
Alongside solid 2017 earnings, debt-reduction measures such as the roughly
EUR3.8 billion in proceeds anticipated in mid-2018 from the agreed-on sale
of the Uniper stake to Fortum will give E.ON additional flexibility. E.ON
intends to use this flexibility to achieve disciplined, profitable growth
during the implementation of the transaction with RWE. Teyssen emphasized
that E.ON's business segments (Energy Networks, Customer Solutions,
Renewables) all have growth potential. "The new energy world is green,
digital, and distributed. Our customers expect us to provide them with
innovative solutions that improve their lives. We intend to meet these
expectations. We have a clear customer focus, the right capabilities, and
also the financial strength to further enlarge our strong position in the
new energy world on our own until the closing of the transaction with RWE,"
Teyssen said.
Positive forecast and reliable dividend policy
"The opportunities of the new energy world will benefit not only our
customers and employees but also especially our shareholders. We intend to
achieve focused and disciplined organic growth," E.ON CFO Marc Spieker said.
Spieker anticipates more good results in 2018. Adjusted EBIT is expected to
be between EUR2.8 and EUR3 billion, adjusted net income between EUR1.3 and
EUR1.5 billion. As announced, E.ON intends to propose to the Annual
Shareholders Meeting to pay out a fixed dividend of 30 cents per share for
the 2017 financial year. Due to the transaction, E.ON strives to pay out a
fixed dividend for 2018 as well. At 43 cents per share, it would be 40
percent higher than the previous year's. "We want to offer our shareholders
reliable dividends, including during the implementation of the transaction
with RWE," Spieker emphasized.
Ambitious growth targets in the implementation phase of the transaction
Based on its existing portfolio, which includes the renewables business,
E.ON intends to increase adjusted EBIT by 3 to 4 percent annually from 2018
to 2020 and earnings per share by 5 to 10 percent. "We anticipate that the
transaction we announced would enable us to surpass these targets", Spieker
said. Compared with the previous medium-term plan for the period 2018 to
2020, E.ON will increase its investments by about 20 percent to a total of
roughly EUR9.5 billion. Just under half will go to the Energy Networks
segment, about a quarter each to Customer Solutions and Renewables.
E.ON's primary focus at Energy Networks in the years ahead will be on
upgrades using digital technology that will make its grids smarter and
better able to connect power producers and consumers in an increasingly
distributed energy world. It also intends to expand its grids in order to
better enable them to handle the growing output from renewable and
distributed generation resources. This will expand the regulated asset base
of the electricity grids by EUR2 to EUR3 billion to EUR21 to EUR22 billion
by 2020.
E.ON wants to make Customer Solutions' customer-service and -acquisition
processes leaner and more digital and bring innovative products to market
faster. Efficiency-enhancement programs launched in Germany and the United
Kingdom will reduce 2018 earnings by about EUR100 million but will lay the
foundation for profitable growth in the years ahead. E. ON also wants to
increase the number of our customers. With a net increase of around 130,000
customers in the fourth quarter of 2017, the company has already achieved a
turnaround here.
Between now and 2020, E.ON intends increase the generating capacity of its
Renewables segment from 6 to 8 gigawatts, primarily by adding onshore wind
farms in the United States and completing Rampion and Arkona offshore wind
farms in Europe. E.ON will continue to systematically develop this segment
and strengthen its earnings until the planned transfer to RWE.
Generally positive 2017 earnings performance in core businesses
E.ON's solid 2017 earnings performance resulted primarily from a significant
increase (+EUR270 million) at Energy Networks, which recorded higher
earnings in nearly all of its regions, Spieker explained. Positive
developments in Germany and Sweden were the main factors. E.ON's Renewables
segment also posted higher earnings (+EUR24 million), principally because of
improved asset availability and higher wind yield. An earnings decline
(-EUR286 million) at Customer Solutions was due mainly to persistently
intense competitive and margin pressure as well as non-recurring items in
Germany. PreussenElektra's earnings were lower (-EUR47 million) primarily
because of an extended outage at Brokdorf nuclear power station and lower
sales prices.
This press release may contain forward-looking statements based on current
assumptions and forecasts made by E.ON Group Management and other
information currently available to E.ON. Various known and unknown risks,
uncertainties, and other factors could lead to material differences between
the actual future results, financial situation, development, or performance
of the company and the estimates given here. E.ON SE does not intend, and
does not assume any liability whatsoever, to update these forward-looking
statements or to align them to future events or developments.
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12.03.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: E.ON SE
Brüsseler Platz 1
45131 Essen
Germany
Phone: +49 (0)201-184 00
E-mail: [email protected]
Internet: www.eon.com
ISIN: DE000ENAG999
WKN: ENAG99
Indices: DAX, EURO STOXX 50
Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime
Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated
Unofficial Market in Tradegate Exchange
End of News DGAP News Service
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