May 13 (Renewables Now) - The Renewables division of German utility E.on SE (ETR:EOAN) experienced a 23% year-on-year rise in adjusted EBIT for the first quarter of 2019 as newly-commissioned wind farms boosted sales.
Adjusted earnings before interest, tax, depreciation and amortisation (EBIT) at the division increased to EUR 211 million (USD 237.6m) from EUR 171 million, while sales went up 19% to EUR 478 million. E.on noted that its renewable energy plants produced more power this quarter because of the commissioning of offshore wind farms in Germany and the UK, along with an onshore wind farm in the US, and despite poor wind conditions.
Since the Renewables segment is expected to be sold to German rival RWE AG (ETR:RWE), it is reported as discontinued operations effective June 30, 2018. This transaction is currently going through an in-depth investigation by the European Commission (EC). E.on said it “is right on schedule.”
Overall, at group level E.on reported an adjusted net profit of EUR 650 million compared to EUR 727 million a year back, when it saw an “extraordinarily strong” quarter. Sales in January-March 2019 increased to EUR 9.2 billion from EUR 8.8 billion.
"Aside from the special case of the United Kingdom, our core businesses delivered a solid performance. We can therefore unequivocally reaffirm our forecast for the 2019 financial year,” commented CFO Marc Spieker.
E.on continues to expect adjusted EBIT of between EUR 2.9 billion and EUR 3.1 billion and adjusted net profit ranging from EUR 1.4 billion to EUR 1.6 billion for the full year. It reaffirmed its annual dividend proposal of EUR 0.46 per share.
(EUR 1.0 = USD 1.126)