E.ON First-Quarter Net Profit Rises Despite Hit From Low Oil Price

By Natalia Drozdiak

FRANKFURT--E.ON SE on Thursday said first-quarter net profit rose, despite taking a hit from low oil prices and continued pressure on electricity prices.

Germany's largest utility by market value said first-quarter net profit rose 40% to 1 billion euros ($1.14 billion), from EUR762 million last year.

Underlying profit, an after-tax figure that strips out nonrecurring effects, dropped 15% to EUR1.0 billion from EUR1.2 billion. Earnings before interest, taxes, depreciation and amortization fell 9% to EUR2.83 billion from EUR3.1 billion, while revenue was down 2% to EUR30.6 billion. E.ON adjusts Ebitda to exclude nonrecurring items.

Analysts polled by The Wall Street Journal had expected the company to post an average underlying profit of EUR995 million and Ebitda of EUR2.74 billion.

Despite the weak first quarter, E.ON confirmed its full-year guidance. It said it still sees Ebitda between EUR7 billion and EUR7.6 billion and underlying profit between EUR1.4 billion and EUR1.8 billion.

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