E.ON Lifts Outlook After Declining Wholesale Prices Boosted Performance

   By Giulia Petroni 
 

E.ON raised its forecast for the full year after registering a rise in adjusted earnings for the second quarter due to more stable wholesale energy prices.

The German utility company said Wednesday that it now expects adjusted net income of between 2.7 billion and 2.9 billion euros ($2.96 billion-$3.18 billion) in 2023 from EUR2.3 billion-EUR2.5 billion previously.

Adjusted Ebitda is seen in a range of EUR8.6 billion-EUR8.8 billion from previous expectations of EUR7.8 billion-EUR8 billion.

For the second quarter, E.ON reported net profit of EUR1.16 billion compared with EUR1.43 billion in the year-earlier period. On an adjusted basis, net income rose to EUR1.28 billion from EUR730 million.

Adjusted Ebitda increased to EUR2.95 billion from EUR1.28 billion, while sales for the quarter fell to EUR18.82 billion from EUR23.34 billion, partly due to lower levels of prices compared with the prior year on commodity transactions.

"The historically high power and gas procurement costs were a big challenge for us last year," Chief Executive Leonhard Birnbaum said. "Now we see that wholesale markets are calming down again. As announced, this will enable us to again lower prices for millions of power and gas customers."

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

August 09, 2023 01:30 ET (05:30 GMT)

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