German utility E.on SE (ETR:EOAN) on Wednesday posted full-year adjusted earnings at the upper end of its forecast range, with a higher contribution from the Renewables segment compared to a year earlier.
Adjusted net profit for 2018 rose slightly to EUR 1.5 billion (USD 1.7bn) from EUR 1.4 billion in 2017 due to a reduction in interest expenses and taxes. At EUR 3 billion, adjusted earnings before interest and tax (EBIT) was a bit below the prior-year figure of EUR 3.1 billion, but still at the upper end of the projected range.
The table below gives more details about the company’s 2018 financial results. The adjusted figures include the discontinued operations in the Renewables segment.
| Figures in EUR million |
2018 |
2017 |
| Sales |
30,253 |
37,965 |
| Adjusted EBITDA |
4,840 |
4,955 |
| - of which from Renewables |
861 |
785 |
| Adjusted EBIT |
2,989 |
3,074 |
| - of which from Renewables |
521 |
454 |
| Net profit (loss) |
3,524 |
4,180 |
| Adjusted net profit (loss) |
1,505 |
1,427 |
The renewables business saw its adjusted EBIT rise to EUR 521 million from EUR 454 million, regardless of a relatively poor wind yield. The improved contribution came thanks to the addition of new wind farms in the US and the commissioning of the 400-MW Rampion offshore wind park in UK waters, which boosted output. Sales of that segment climbed to EUR 1.75 billion from EUR 1.6 billion.
“We put in an outstanding operating and financial performance for the third year in a row. We’re going to continue this success story in the current year as well,” commented CFO Marc Spieker.
E.on forecasts 2019 adjusted EBIT of between EUR 2.9 billion and EUR 3.1 billion, as well as adjusted net profit of EUR 1.4 billion-1.6 billion.
“Through 2020 we expect our current business portfolio to generate annual EBIT growth of 3 to 4 percent on average and our earnings per share to rise by an average of 5 to 10 percent,” Spieker said.
The management will propose a dividend of EUR 0.43 per share for the full 2018, up from EUR 0.30 for 2017, with plans to pay shareholders a fixed dividend of EUR 0.46 per share for 2019.
In 2018, E.on invested just over EUR 3.5 billion, thus surpassing the prior-year figure by 6%. This year it intends to increase investments again, with a focus on networks, which Spieker called “the backbone of the energy transformation.”
E.on's CEO Johannes Teyssen said he is confident that the company will secure the necessary approvals to acquire Innogy (ETR:IGY) in the second half of the year. All aspects of the planned takeover remain on schedule, the company noted.
(EUR 1.0 = USD 1.132)
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Rampion turbines. Source: E.on UK plc (www.eonenergy.com)
