E.on's renewables EBIT slightly up in Q1

German utility E.on SE (ETR:EOAN) today reported first-quarter (Q1) EBIT of EUR 171 million (USD 204m) from its renewables division, up by 7% year-on-year.

The company said offshore wind capacity additions in the UK contributed to the increase in adjusted earnings before interest and tax (EBIT), but the percentage would have been higher if the power prices for electricity sold did not drop during the period. The expiration of incentive mechanisms also affected earnings.

Renewables sales grew to EUR 401 million from EUR 376 million a year before, supported by the coming on stream of the 228-MW Bruenning’s Breeze and 305.8-ME Radford’s Run wind parks in the US and better wind conditions in the UK and Italy.

E.on said it expects adjusted EBIT for renewables in 2018 to be above the year-ago result. The full completion of the 400-MW Rampion offshore wind farm, planned for this year, will help achieve that. In April the energy company said all 116 turbines of the park off the coast of Sussex had started producing power.

E.on also affirmed its forecast for 2018 adjusted EBIT of the Group of EUR 2.8 billion to EUR 3 billion, and an adjusted net profit of EUR 1.3 billion to EUR 1.5 billion. “All the key figures and developments for the entire Group are in line with our plan, and we therefore affirm our forecast for full-year 2018,” said CFO Marc Spieker.

The table shows details of the company’s Q1 results.

Investments in the Onshore Wind/Solar business were up by EUR 44 million in the quarter, mainly due to expenditures for the now-completed Radford’s Run wind park the 201-MW Stella wind farm, which is under construction. Offshore Wind/Other investments were down by EUR 115 million as Rampion and Arkona expenditures decreased.

(EUR 1 = USD 1.19)

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