E.ON Backs Guidance After Swing Back to Profit on Investment-Led Growth
By Christian Moess Laursen
E.ON backed its guidance for the year after booking a swing to net income in the first quarter, and increased its energy networks investment.
The German utility said Wednesday that it swung to a net income of 584 million euros ($735.3 million) in the first quarter after booking a loss of EUR72 million a year prior. The swing back to profit was driven by investment-led growth and operating improvements, it said.
Adjusted net income--which excludes exceptional and other one-off items--rose slightly to EUR1.05 billion from EUR1.03 billion.
First-quarter sales fell 33% to EUR22.64 billion, hampered by a 40% decline in energy retail sales due to lower prices and weather factors.
Meanwhile, while adjusted earnings before interest, taxes, depreciation and amortization edged higher to EUR2.745 billion from EUR2.715 billion.
E.ON said it invested about EUR1.3 billion in Europe's energy transition just in the quarter, representing a 25% increase on year, with nearly EUR1 billion put toward the company's energy networks business.
E.ON backed its full-year guidance of adjusted Ebitda between EUR8.8 billion and EUR9.0 billion and adjusted net income of EUR2.8 billion to EUR3.0 billion. It also confirmed its planned investments of about EUR7.2 billion for the year.
Write to Christian Moess Laursen at christian.moess@wsj.com
(END) Dow Jones Newswires
May 15, 2024 01:31 ET (05:31 GMT)
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