Energy company – Eon increases annual forecast – economy

Energy group Eon increased its forecast after growth in the first half of the year. Profit before interest and taxes adjusted for special effects, EBIT, rose 45% in the first half of 2021 to reach 3.2 billion euros thanks to the increase in gas sales, the group announced on Wednesday. Eon has been able to develop both in the field of customer solutions and in the field of networks. Another positive factor was the cancellation of purchases of residual electricity volumes under the agreement between the federal government and the operators of nuclear power plants. In the spring, the federal government agreed with the operators of nuclear power plants to compensate for the premature phase-out of nuclear power totaling a good 2.4 billion euros. It implemented a judgment of the Federal Constitutional Court of 2016.

In customer solutions, Eon was able to improve its adjusted EBIT by 75% to € 838 million. Eon also benefited from cost savings in UK sales. In the Energy Networks business area, adjusted EBIT increased 8% to € 1.8 billion. “We now assume that we will achieve an Adjusted EBIT target of between 4.4 billion euros and 4.6 billion euros and an adjusted consolidated net profit of 2.2-2.4 billion euros for the entire year. ‘year 2021 “, CEO Leonhard Birnbaum said. So far, Eon expected adjusted EBIT of 3.8 billion to 4.0 billion euros and adjusted net income of 1.7 to 1.9 billion euros. Birnbaum also confirmed medium-term earnings planning through 2023, including the dividend pledge.

How have shareholders reacted to rising gas sales and falling costs? More recently, the price hit the mid-May high. On Wednesday, it fell more than one percent at the start of trading, then the price rallied.

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