08.08.2018
E.ON SE DE000ENAG999
DGAP-News: E.ON SE: E.ON increases first-half earnings and affirms forecast
DGAP-News: E.ON SE / Key word(s): Half Year Results
E.ON SE: E.ON increases first-half earnings and affirms forecast
08.08.2018 / 07:30
The issuer is solely responsible for the content of this announcement.
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E.ON increases first-half earnings and affirms forecast
* Forecast for 2018 adjusted EBIT and adjusted net income affirmed
First-half adjusted EBIT 10 percent above prior-year figure, adjusted
net income up 19 percent
* Economic net debt reduced further
* Important milestones reached in transaction with RWE
E.ON delivered good results for the first half of 2018. Adjusted EBIT in the
company's core business of EUR1.7 billion was 10 percent above the weak
prior-year figure (EUR1.6 billion). Adjusted EBIT for the E.ON Group as a
whole likewise rose by 10 percent to EUR1.9 billion (prior year: EUR1.8
billion). Adjusted net income of EUR1,052 million surpassed the prior-year
figure of EUR881 million by EUR171 million, or 19 percent.
Forecast for 2018 financial year affirmed
At the presentation of E.ON's Interim Report for the first half of 2018 in
Essen, E.ON CFO Marc Spieker affirmed the company's forecast for the 2018
financial year: "Our core business - Energy Networks, Customer Solutions,
and Renewables - delivered good results, even though we continue to face
fierce competition, primarily in our customer solutions business. We're
meeting these challenges with new products, new solutions, and even better,
more efficient processes, particularly for our customers. 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."
E.ON continues to expect the Group's full-year adjusted EBIT to be between
EUR2.8 and EUR3 billion and its full-year adjusted net income to be between
EUR1.3 and EUR1.5 billion.
Good performance in core business
The Customer Solutions segment in particular contributed to E.ON's good
first-half earnings performance. E.ON enlarged its customer base relative to
the prior year by approximately 100,000 household customers. Customer
Solutions' sales of EUR11.5 billion were slightly above the prior-year
figure of EUR11.2 billion. Its adjusted EBIT rose by 8 percent year on year,
from EUR440 million to EUR477 million.
The Energy Networks segment again generated more than half of the E.ON
Group's earnings. Its sales of EUR6.1 billion were 30 percent below the
prior-year level of EUR8.6 billion. This is only attributable to a technical
effect resulting from the application of a new International Financial
Reporting Standard. Starting this financial year, renewables subsidies and
other levies that are passed through are netted out in the income statement,
which reduces both sales and costs of materials. Earnings from operations
remain unaffected. Energy Networks' adjusted EBIT of EUR1,070 million was
roughly at the prior-year level of EUR1,087 million. A special item in the
low double-digit million range partially offset an anticipated decline in
earnings due to regulatory reasons. However, E.ON expects this segment's
earnings to decline somewhat more significantly as the year goes forward.
This has already been factored into the company's forecast for full-year
2018.
Sales at the Renewables segment rose from EUR710 million to EUR741 million,
primarily because of higher output due to the commissioning of new offshore
and onshore wind farms. This segment's earnings increased by 15 percent,
from EUR205 million to EUR236 million.
Earnings at Non-Core Business, which consists of PreussenElektra and the
generation business in Turkey, totaled EUR224 million, 9 percent above the
prior-year figure of EUR205 million.
Good operating results yield strong cash flow
E.ON's operating cash flow of EUR1.4 billion was EUR3.5 billion lower than
in the prior-year period, mainly because of an exceptionally significant
one-off item, the roughly EUR2.85 billion refund of the nuclear-fuel tax the
company received in June 2017.
Debt reduced further
Compared with the figure at year-end 2017 (EUR19.2 billion), E.ON reduced
its economic net debt by EUR3.4 billion, or 18 percent, to roughly EUR15.9
billion. This positive development is principally attributable to the
proceeds from the sale of the company's Uniper stake and gas network in
Hamburg. "We'll use this balance-sheet flexibility to implement the
transaction we agreed on with RWE in March. When it closes, it will create a
new E.ON and an even more powerful company, a company focusing on smart
grids and innovative customer solutions and fully dedicated to serving its
customers," Spieker said.
Important milestones reached in transaction with RWE
Since announcing the transaction with RWE in March 2018, E.ON has already
reached important milestones toward implementation. Together with RWE and
innogy and in consultation with the Group Works Councils, in May E.ON
reached a collective-bargaining Agreement in Principle with ver.di and
IGBCE. This was followed in July by a Framework Agreement with the E.ON SE
Works Council and Group Works Council. Both agreements establish reliability
for all employees on the road toward the new E.ON. In July E.ON also reached
an agreement with innogy to work together constructively, to the degree
permitted by law, in preparing for the integration. In late July E.ON
successfully completed its voluntary public takeover offer to innogy's
minority shareholders. Through the end of the extended offer period, about
9.4 percent of innogy stock was tendered to E.ON. Together with the
76.8-percent stake from RWE, this equals 86.2 percent of innogy's share
capital. "The agreed-on acquisition of RWE's majority stake alone would've
enabled us to integrate innogy into E.ON," Spieker said. "We're therefore
very satisfied with the outcome of our voluntary public takeover offer and
are pleased that many other innogy shareholders accepted our offer. Numerous
options are available to us for the legal aspects of the integration after
closing. We're now focusing on the preparations for this integration and a
swift antitrust approvals process."
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 conform them to future events or developments.
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08.08.2018 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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