Aug 13, 2014 - German utility E.on AG (ETR:EOAN) saw its renewable energy earnings before interest and tax (EBIT) rise to EUR 654 million (USD 874m) in the first half of 2014 from EUR 597 million a year ago.
Hydropower EBIT fell to EUR 355 million from EUR 364 million, but this was more than compensated by wind, solar and other green activities where EBIT went up to EUR 299 million from EUR 233 million.
According to E.on’s first-half report released today, earnings before interest, tax, depreciation and amortisation (EBITDA) at the renewable energy division have grown by 7% to EUR 870 million, mainly thanks to its build-and-sell strategy for wind and solar. Again EBITDA for hydropower operations declined by 2%, but for wind, solar and other green activities it jumped by 17% to EUR 453 million.
Renewables revenue amounted to nearly EUR 1.12 billion in January-June, down from EUR 1.28 billion a year earlier. The result included external sales of EUR 369 million, while the rest was intersegment sales. Power sales for the renewable energy division went down to 3 billion kWh from 4.2 billion kWh as the company disposed of some hydropower assets.
E.on made investments of EUR 418 million in its renewables business during the reporting period, up by 30% year-on-year. In particular, the wind, solar and other business saw spending jump to EUR 385 million from EUR 285 million, including investments in two big offshore wind parks in German and UK waters.
The German company said it expects renewables EBITDA for the whole of 2014 to be at the same level as last year.
(EUR 1 = USD 1.336)
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