August 9 (Renewables Now) - German utility E.on SE's (ETR:EOAN) renewables business increased its adjusted earnings before interest and tax (EBIT) in the first half of 2018 by 15% year-on-year to EUR 236 million (USD 273.5m).
Renewables sales increased to EUR 741 million from EUR 710 million, the company's results showed on Wednesday. The increases in sales and adjusted EBIT reflect higher output due to the commissioning of new offshore and onshore wind farms, which was partially offset by unfavourable wind conditions, mainly offshore, and the expiration of support mechanisms. The 228-MW Bruenning's Breeze and 305.8-MW Radford's Run wind parks in the US were commissioned in December 2017 and the 400-MW Rampion offshore wind farm in the UK came online in April 2018.
E.on's first-half adjusted EBIT rose 10% to EUR 1.9 billion, while adjusted net profit was up 19% to EUR 1.05 billion.
"Our core business — Energy Networks, Customer Solutions, and Renewables — delivered good results, even though we continue to face fierce competition, primarily in our customer solutions business," said chief financial officer Marc Spieker.
The company confirmed its full-year forecast for adjusted EBIT of EUR 2.8 billion-3 billion and adjusted net income of EUR 1.3 billion-1.5 billion.
|in EUR millions||H1 2018||H1 2017|
|- of which from renewables||741||710|
|- of which from renewables||236||205|
|- of which at renewables||449||528|
The renewables operations are classified as discontinued effective June 30, 2018 as a result of the complex deal that E.on and RWE AG (ETR:RWE) agreed in March. The deal includes E.on's planned purchase of RWE's stake in Innogy and RWE's acquisition of E.on's major renewable energy operations and Innogy's own renewables business.
(EUR 1 = USD 1.159)