DGAP-News: E.ON AG: E.ON continues positive performance
(firmenpresse) - DGAP-News: E.ON AG / Key word(s): Half Year Results
E.ON AG: E.ON continues positive performance
13.08.2012 / 07:30
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E.ON continues positive performance
- First-half EBITDA (*1 up by EUR 2.4 billion year on year to roughly EUR
6.7 billion
- Underlying net income up by EUR 2.4 billion year on year to roughly EUR
3.3 billion
- Full-year 2012 EBITDA expected to be between EUR 10.4 and EUR 11
billion, underlying net income between EUR 4.1 and EUR 4.5 billion
With a strong first half of 2012, E.ON continues its positive performance
and confirms its full-year forecast. E.ON's first-half EBITDA rose by
EUR2.4 billion year on year to roughly EUR6.7 billion, its underlying net
income by EUR2.4 billion to roughly EUR3.3 billion.
'Our solid first-half results demonstrate that we're meeting our existing
challenges decisively. We successfully renegotiated our gas-procurement
contracts, and the transformation of our company through our E.ON
efficiency-enhancement program is moving forward according to plan,' said
E.ON CEO Dr. Johannes Teyssen as he presented the company's results.
E.ON's first-half sales rose by 23 percent year on year to EUR65.4 billion.
As in previous quarters, the increase in sales in the Optimization&Trading segment was particularly significant. This growth continued to
reflect the effects of the increase in trading activity to optimize E.ON's
generation fleet and, in particular, an altered gas hedging strategy. An
increase in generating capacity led to higher sales in the Renewables and
Russia segments as well. The Generation segment posted lower sales, owing
mainly to the absence of output from nuclear power stations in Germany that
were mandatorily shut down in 2011 and to an overall decline in output in
the company's generation portfolio in Europe.
E.ON's EBITDA increased by EUR2.4 billion to roughly EUR6.7 billion, owing
mainly to the following factors:
- The absence of an adverse one-off effect, recorded in the second
quarter of 2011, relating to Germany's accelerated phaseout of nuclear
energy had a positive impact on E.ON's first-half earnings in the
amount of EUR1.5 billion.
- The successful renegotiation of all currently oil-indexed offtake under
E.ON's long-term gas procurement contracts resulted in a positive
earnings effect of EUR1.2 billion relative to the prior-year period.
- Earnings in Russia were up by 39 percent to EUR0.4 billion because of
an increase in installed generating capacity
- Earnings in the Renewables segment were down EUR0.1 billion compared to
the prior year period. This resulted principally from an increase in
provisions for repairs at Happurg pumped-storage hydro station and to
lower transfer prices in the hydropower business. From an operating
perspective, earnings at E.ON's wind and solar business were 15 percent
higher due to an increase in installed capacity.
- Lower prices and narrower margins caused earnings in the Generation
segment to decline by roughly EUR0.4 billion.
- In addition, higher payments of Germany's nuclear-fuel tax relative to
the prior year reduced Generation's earnings by roughly EUR0.4 billion.
- Earnings were EUR0.1 billion lower in the Exploration&Production
segment owing to a decline in production at E.ON's North Sea fields
caused by shut-ins at Njord and Elgin fields. These production declines
were only partially offset by positive price effects and by earnings
from Yuzhno Russkoye gas field in Russia.
E.ON's underlying net income rose by EUR2.4 billion to roughly EUR3.3
billion, mainly because of the increase in EBITDA. Slightly lower
depreciation charges and a slightly improved economic interest expense were
also positive factors. These were partially offset by an increased absolute
tax expense.
E.ON's first-half investments in property, plant, and equipment, intangible
assets, and shareholdings totaled EUR2.7 billion, a 10-percent increase
from the prior-year figure.
E.ON's operating cash flow increased by 5 percent year on year to EUR2.5
billion. The significant increase in EBITDA and positive effects from a
decline in working capital were partially offset by adverse effects that
included significant withholding tax payment. In addition, payments
resulting from E.ON's agreement with Gazprom will not take place until the
third quarter. The absence of an adverse one-off effect recorded in 2011
relating to the amendment of Germany's Nuclear Energy Act had a positive
impact on EBITDA but was not cash-effective.
E.ON's economic net debt stood at EUR41.1 billion at the end of the first
half, about EUR4.7 billion more than at year-end 2011. It was adversely
affected by the company's dividend payout and investment expenditures as
well as by a significant increase in provisions for pensions resulting from
lower discount rates. Disposal proceeds and operating cash flow were
positive factors. As already noted for operating cash flow, payments
anticipated in the second half of the year will have a significantly
positive impact on E.ON's net debt.
On the basis of its current business portfolio, E.ON continues to expect
its full-year 2012 EBITDA to be between EUR10.4 and EUR11 billion and its
underlying net income to be between EUR4.1 and EUR4.5 billion.
(*1 Adjusted for extraordinary effects.
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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 mate-rial differences between
the actual future results, financial situation, development or performance
of the company and the estimates given here. E.ON AG 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
End of Corporate News
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Language: English
Company: E.ON AG
E.ON-Platz 1
40479 Düsseldorf
Germany
Phone: +49 (0)211 4579-0
Fax: +49 (0)211 45 79-5 01
E-mail: investorrelations(at)eon.com
Internet: www.eon.com
ISIN: DE000ENAG999
WKN: ENAG99
Indices: DAX, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX; Mailand
End of News DGAP News-Service
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