E.ON Raises Investment Target But Expects Price Reductions to Hit Earnings

By Giulia Petroni

E.ON raised its investment target for the full year but said it expects fourth-quarter earnings to suffer the impact of price reductions for electricity and gas customers.

The German energy company said Wednesday that it plans to invest a total of 6.1 billion euros ($6.53 billion) from previously EUR5.8 billion. From 2023 to 2027, investments in energy networks and customer solutions are expected to amount to EUR33 billion.

It said it has implemented price reductions for millions of electricity and gas customers in recent months, and that it expects the pass-through of lower wholesale prices to have a significant negative impact on earnings in its customer solutions business.

The company backed its earnings guidance for the year, saying that it continues to reflect a potential deterioration in the energy market environment due to increased volatility as a result of supply and demand uncertainties as well as geopolitical tensions.

In the third quarter, E.ON posted a net profit of EUR81 million, significantly down from EUR1.56 billion in the year earlier. On an adjusted basis, net profit came in at EUR634 million.

Adjusted earnings before interest, taxes, depreciation and amortization increased to EUR2.12 billion from EUR2.05 billion, while adjusted EBIT came in at EUR1.38 billion, 2% higher on year.

Sales were EUR16.88 billion, down from EUR28.75 billion.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

November 08, 2023 01:52 ET (06:52 GMT)

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