E.ON posts slight increase in first-quarter core earnings, keeps outlook
First Quarter Financial Performance and Outlook
Core Profit Growth and Contributing Factors
FRANKFURT, May 13 (Reuters) - Europe's largest energy network operator E.ON posted a 2% rise in core profit in the first quarter, it said on Wednesday, partly driven by its business with industrial customers in its home-market Germany.
Frankfurt-listed shares in the company were up 1.5% in early trade, with Jefferies analysts also pointing to higher energy retail prices at the beginning of the year as a contributor.
Adjusted Core Profit and Investments
Adjusted core profit climbed to 3.3 billion euros ($3.87 billion) in the January-March period, the company said, also confirming its outlook for the current year.
Investments in the period fell to 1.4 billion euros from 1.5 billion last year, the company said, citing cold weather in Germany that caused delays at network infrastructure upgrades.
Comments from E.ON Leadership
"We're building the infrastructure that Europe's increasingly electrified energy system needs in economically and geopolitically challenging times — high-performing, digital, and future-proof," finance chief Nadia Jakobi said.
Outlook and Analyst Expectations
E.ON, which earlier this week unveiled plans to buy British energy retail firm Ovo Energy, said it still expects adjusted core profit of 9.4 to 9.6 billion euros this year, with adjusted net profit seen at 2.7 to 2.9 billion euros.
Analysts in a poll provided by the company expect adjusted core profit of 9.6 billion and adjusted net profit of 2.9 billion euros.
Additional Information
($1 = 0.8522 euros)
(Reporting by Christoph Steitz, editing by Kirsti Knolle)
