Eon boosts financial commitments - expectation renewed
Following a promising beginning to the year, utility company Eon feels optimistic about their progress. Despite a downturn in revenues, profits remain steady. The DAX-listed firm is adamant about sticking to their projections for the year.
Eon, an energy provider, has managed to match last year's performance at the start of 2022, thanks to cost-saving measures. Although external sales decreased sharply from 33.5 billion to 22.6 billion euros, Eon's CFO, Marc Spieker, indicated they're off to a strong start in their new financial year. Confirming their forecast, they remain hopeful about the current year's prospects.
Eon's adjusted operating earnings (EBITDA) grew marginally to 2.7 billion euros. While adjusted net income reached approximately one billion euros, adjusted earnings per share stayed constant at 0.40 euros.
The network business saw a six percent dip, with earnings decreasing to approximately 1.8 billion euros. In the Customer business, Energy Retail's adjusted EBITDA boosted by 39 percent to 867 million euros. The growth was due to profitable operations in the United Kingdom. In the Energy Infrastructure Solutions division, covering the decarbonization of business customers, cities, and municipalities, EBITDA dropped by nearly a quarter to 163 million euros. However, the previous year's results were impacted by one-time correlations.
The company's quarterly investments saw an increase of around 25%, totaling about 1.3 billion euros. A majority of these, approximately one billion euros, went towards the network business. The priority was on linking renewable energy plants and modernizing and digitalizing the grid infrastructure. Eon remains committed to investing around €7.2 billion this year. In 2023, they planned €6.4 billion. Eon envisions investing a grand total of 42 billion euros across Europe by 2028.
Eon anticipates an adjusted Group net profit of between 2.8 billion and 3.0 billion euros for the current year. This translates to earnings per share ranging between 1.07 and 1.15 euros. Adjusted EBITDA is expected to be between 8.8 billion and 9.0 billion euros.
The company claims to be one of the largest distribution network operators in Europe, with almost 1.6 million kilometers of electricity and gas lines in nine countries. In Germany, where they're the top distribution network operator, they manage nearly 700,000 kilometers of electricity lines. They also operate 100,000 kilometers of gas networks.
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Eon, being an Dax company and an energy supplier, has announced quarterly figures revealing a stable profit despite a decrease in revenues. Eon, specifically their Energy Infrastructure Solutions division, saw a decrease in EBITDA, but they remain committed to investing heavily in renewable energy infrastructure, aiming to invest a total of 42 billion euros across Europe by 2028.
Source: www.ntv.de
