Germany's E.ON Tumbles to Loss on More Write-Downs

FRANKFURT—German electricity utility E.ON SE swung to a first-half net loss after writing down the value of assets held by its conventional power unit Uniper.

E.ON fell to a net loss of €3.03 billion ($3.38 billion) in the six months to end-June from profit of €1.15 billion from the same period last year.

The utility said it took an impairment charge of €3.8 billion for Uniper, including €2.9 billion in write-downs on power stations and gas storage facilities, as well as €900 million in provisions.

Revenue also declined, falling 11% to €20.25 billion.

E.ON, like other utilities in Germany and other parts of Europe, has been plagued by dramatically low wholesale electricity prices amid a power glut spawned by a rise in renewable energy and low commodity prices.

In June, E.ON won shareholder approval for a plan to spin off conventional energy and trading activities into a new company, Uniper, and to list around 53% of the new unit by year's end.

E.ON said net debt came to €24.8 billion at end June, up from €21.3 billion at the end of 2015.

E.ON backed guidance for the full year, excluding Uniper's operations, for adjusted earnings before interest and taxes of €2.7 billion to €3.1 billion and adjusted after-tax income of €600 million to €1 billion.

Write to Monica Houston-Waesch at [e-mail]

(END) Dow Jones Newswires

August 10, 2016 03:55 ET (07:55 GMT)

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