E.ON Exceeded Expectations Last Year But Sees Lower 2022 Earnings -- Update

   By Giulia Petroni 
 

E.ON SE on Wednesday said that following a solid performance last year it expects adjusted earnings to be lower in 2022, and that the impact of the war in Ukraine on its business can't be fully estimated at this time.

The German energy company said it expects adjusted net income of between 2.3 billion euros and 2.5 billion euros ($2.5 billion to $2.74 billion) in the current year, while adjusted earnings before interest, taxes, depreciation and amortization are seen between EUR7.6 billion and EUR7.8 billion.

"Despite lower earnings from nuclear power, this will be achieved primarily through significant organic growth in E.ON's core business," it said. Germany is set to shut down its remaining nuclear-power plants this year according to its nuclear phaseout roadmap.

The effects of the war in Ukraine are not reflected in the forecast, E.ON said, but it added that it perceives commodity market and related credit and liquidity risks due to the conflict.

In full-year 2021, E.ON recorded adjusted net income of around EUR2.5 billion, up 53% on year, while adjusted Ebitda was about EUR7.9 billion, mainly driven by a strong performance in the customer-solutions segment. The results exceeded expectations, according to Chief Financial Officer Marc Spieker.

The company also said it will start investigating its strategic options for its district heating businesses in Norrkoping and Orebro, Sweden, including the possibility of divestment. Portfolio optimization measures haven't been included in the current year's forecast.

E.ON said its dividend proposal for 2021 amounts to EUR0.49 a share, and it aims to increase the dividend by up to 5% annually through 2026.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

March 16, 2022 06:28 ET (10:28 GMT)

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