DGAP-News: E.ON AG: E.ON remains on course
(firmenpresse) - DGAP-News: E.ON AG / Key word(s): Interim Report/Interim Report
E.ON AG: E.ON remains on course
11.05.2011 / 07:30
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E.ON remains on course
- Adjusted EBITDA 23 percent below prior-year figure
- Adjusted net income down by 34 percent
- Losses at midstream gas business adversely impact earnings as anticipated
- Gas-production earnings significantly higher
- 2011 forecast adjusted by EUR0.5 billion because of portfolio measures
- Forecast: adjusted EBITDA between EUR10.7 and EUR11.4 billion, adjusted
net income between EUR3 and EUR3.7 billion
E.ON remains on course despite extraordinary business and energy-policy
challenges. Its forecast for full-year 2011 is nearly unchanged despite the
anticipated negative impact of the economic crisis on its power business
and rising margin pressure in its gas business plus the additional negative
impact of the shutdown of two of its nuclear power stations in Germany.
E.ON expects its full-year adjusted EBITDA to be between EUR10.7 and
EUR11.4 million and its adjusted net income to be between EUR3 and EUR3.7
billion. The roughly EUR500 million adjustment to its original earnings
guidance mainly reflects the sale, completed in April, of U.K. power
network operator Central Networks and other portfolio measures. E.ON's
current forecast is based on the assumption that its nuclear power stations
can return to service after the moratorium. Although the shutdown of Isar 1
and Unterweser nuclear power stations will reduce E.ON's earnings by around
EUR250 million, this will largely be offset by positive effects.
E.ON's first-quarter sales rose by 8 percent year on year to EUR27.8
billion, whereas adjusted EBITDA, the company's key earnings metric, fell
by 23 percent to around EUR3.5 billion. At EUR1.3 billion, E.ON's adjusted
net income was down by 34 percent.
Losses at the gas midstream business and lower profits at the U.K. retail
business, declining power prices and generation margins in Southern Europe,
and lower earnings at regional distribution networks in Germany were the
main negative factors.
The main positive earnings drivers were significantly higher earnings in
gas production, renewables, and Russia along with positive effects from
PerformtoWin, E.ON's efficiency enhancement program.
E.ON's first-quarter results are the first under its new segmentation which
reflects the new organizational setup it announced last fall.
Conventional Generation (nuclear, coal, and gas) increased adjusted EBITDA
by 21 percent to EUR1.46 billion. The key drivers were rising transfer
prices for deliveries to the Trading unit and higher output in Sweden.
Renewables Generation (hydro, wind, solar, and biomass) grew adjusted
EBITDA by 28 percent to EUR396 million on a significant increase in
generating capacity, higher transfer prices for hydropower in Germany and
Sweden, and higher earnings from green certificates in Italy. E.ON is
already a global leader in renewables.
As anticipated, Global Gas's adjusted EBITDA was sharply lower, falling by
EUR810 million to roughly EUR140 million. The main negative factor was
margin pressure resulting from the disconnect between long-term,
oil-price-indexed procurement prices and declining spot prices. For the
year as a whole, Global Gas's earnings are expected to be down by about
EUR0.8 billion. E.ON has successfully renegotiated long-term supply
contracts equal to roughly onequarter of its total gas procurement.
Trading's adjusted EBITDA of -EUR223 million was within the anticipated
range. The loss mainly reflects higher transfer prices to the Conventional
Generation and Renewables Generation units. A decline in achieved prices on
external power sales in the proprietary-trading business was another
negative factor.
Adjusted EBITDA of EUR755 million at the Germany regional unit was stable.
Lower earnings in the regulated network business were offset by positive
developments in the unregulated business.
Adjusted EBITDA of EUR941 million at Other EU Countries (such as the United
Kingdom and Hungary) was nearly at the high prior-year level. Narrower
margins in the U.K. retail business were offset by higher earnings at
distribution networks in Eastern Europe.
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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 material 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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11.05.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: E.ON AG
E.ON-Platz 1
40479 Düsseldorf
Deutschland
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
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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123937 11.05.2011
Datum: 11.05.2011 - 07:30 Uhr
Sprache: Deutsch
News-ID 34023
Anzahl Zeichen: 0
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Kategorie:
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